The Central Government of India recently admitted that no concrete assessment of farm income has been carried out since 2013. This comes in light of the policy target set in the Annual Budget 2016-17 to double the income of farmers by 2022.
Agriculture in India and the Task of Doubling Farmers’ Income
Agriculture plays a significant role in India’s economic fabric, sustaining livelihood for more than half of the nation’s total population. Thus, the proposition of doubling farmers’ income within such a short period is a daunting task for decision-makers, scientists, and policymakers. The goal is achievable through increasing output, better price realization in the market, reduction in production costs, diversification of products, efficient post-harvest management, value addition, and more.
Data Related to Indian Farmers: Government Initiatives
Several steps have been implemented by the Indian Government for the benefit of farmers. Institutional reforms such as Pradhan Mantri Krishi Sinchai Yojana, Soil health card, and Prampragat Krishi Vikas Yojana have been launched with an intent to elevate output and slash costs. Pradhan Mantri Fasal Bima Yojana seeks to provide insurance against crop and income loss and bolster investment in farming.
Addressing the Volatility of Perishable Commodities
To combat price volatility of perishable commodities like Tomato, Onion, and Potato (TOP), the Government introduced Operation Greens. PM Kisan Sampada Yojana was designed to encourage food processing comprehensively.
Technological Interventions in Agriculture
Technological reforms are a part of the government’s agenda. The National Agriculture Market (eNAM) is a pan-India electronic trading portal aimed at creating a unified national market for agricultural commodities. Various Missions like the Technology mission on cotton, Technology Mission on Oilseeds, Pulses, and Maize (TMOPM), Mission for Integrated Development of Horticulture (MIDH), and Sugar Technology Mission have been commissioned to enhance productivity, conserve energy and boost income.
The Importance of Sustainable Agriculture
The National Mission on Sustainable Agriculture is another substantial step. It seeks to promote sustainable agriculture through measures focusing on ten key dimensions, including ‘Improved crop seeds, livestock and fish cultures’, ‘Water Use Efficiency’, ‘Pest Management’, ‘Improved Farm Practices’, ‘Nutrient Management’, ‘Agricultural insurance’, ‘Credit support’, ‘Markets’, ‘Access to Information’ and ‘Livelihood diversification’.
Understanding Challenges and Finding Solutions
To achieve the ambitious target of doubling farmers’ income by 2022, the Economic Survey 2021 highlighted several challenges that need addressing. These include extension of irrigation facilities, improvement in agricultural credit availability, land reform measures, a boost to allied sectors such as dairy and fisheries, farm mechanisation, and improvement in food processing sector.
Exploring Global Markets
The emphasis on exploring global markets for agricultural commodities is required to provide an additional source of the market for the surplus of agricultural produce India currently has. Simultaneously, the reallocation of labour resources to other sectors is crucial, even with the structural transformations involving a declining share of the agriculture sector and rising share of services sector jobs.
Addressing Other Issues
Certain matters such as investment in agriculture, insurance coverage, water conservation, improved yields through better farming practices, access to the market, availability of institutional credit, and increasing the linkages between agricultural and non-agricultural sectors need immediate attention.
The Way Forward
Farmers’ low income and its year-to-year fluctuations are a significant cause of rural distress. Therefore, proper measures must be implemented to improve the welfare of farmers and increase agricultural income. It is essential to involve States and UTs to achieve the goal of doubling farmers’ income with an active focus on capacity building (technology adoption and awareness) of farmers. Lastly, there is an urgent need to track the progress of farmers. The National Sample Survey Office’s last survey on agricultural households was conducted in 2013, and no further assessment of the farmers’ income has been made since then.