The Standing Committee of Parliament on Agriculture has proposed change in the name of the Union Agriculture Ministry. This change aims to highlight the importance of farm workers in policy discussions. The committee, led by Charanjit Singh Channi, has also called for improved support systems for small-holding farmers, including crop insurance.
Proposed Name Change
The committee suggests renaming the ‘Department of Agriculture and Farmers Welfare’ to ‘Department of Agriculture, Farmers and Farm Labourers Welfare’. This change acknowledges the vital role of farm labourers. They often belong to marginalised communities and are essential to the agricultural workforce. The committee believes this recognition is crucial for inclusive policy-making.
Need for Crop Insurance
The committee has recommended a comprehensive crop insurance plan for small-holding farmers. It aims to provide a safety net for farmers with land holdings of up to two hectares. This insurance would protect them against crop losses. It would also encourage investment in better farming practices. The proposal is similar to the Pradhan Mantri Jan Arogya Yojana.
Monitoring Fund Usage
The report marks the need for better monitoring of fund usage within the Ministry. It outlines a decline in budgetary allocations to the Ministry over recent years. The committee urges the Ministry to implement processes to ensure funds are used effectively. This is vital as over 50% of the population relies on agriculture for their livelihoods.
Minimum Support Price (MSP) Recommendations
The committee recommends introducing Minimum Support Price for all organic crops. This proposal aims to incentivise farmers to transition to organic farming. The MSP for organic produce should be higher than that for conventional crops. This would compensate for lower yields during the transition period. The demand for MSP should not overshadow the need for a broader MSP framework based on the Swaminathan formula.
Addressing Wage Disparities
The establishment of a ‘National Commission for Minimum Living Wages for Farm Labourers’ is another key recommendation. This body would focus on addressing wage disparities in the agricultural sector. It aims to improve living standards for farm labourers, who often face economic challenges.
Impact on Smallholder Farmers
The proposed measures are expected to impact the financial stability of smallholder farmers. By providing crop insurance and a fair MSP, farmers can avoid debt traps. This security encourages reinvestment in future crops. It reduces reliance on high-interest loans from informal sources.
Budget Allocation Concerns
The report notes a troubling trend in budget allocations to the Ministry. The percentage of the total Central outlay has decreased over the past years. The committee stresses the importance of reversing this trend to support the agricultural sector effectively.
Questions for UPSC:
- Critically discuss the significance of renaming the Ministry of Agriculture and Farmers Welfare in relation to farm labourers.
- Analyse the implications of introducing a comprehensive crop insurance scheme for small-holding farmers.
- Examine the role of Minimum Support Price in promoting organic farming and its impact on traditional agriculture.
- Estimate the effects of declining budget allocations on the agricultural sector and its workforce in India.
Answer Hints:
1. Critically discuss the significance of renaming the Ministry of Agriculture and Farmers Welfare in relation to farm labourers.
- The proposed name change acknowledges the crucial role of farm labourers in agriculture.
- It aims to include marginalized communities in policy discussions and welfare schemes.
- Recognition can lead to more inclusive and targeted policies for farm labourers.
- It reflects a shift towards valuing the contributions of all agricultural workers, not just farmers.
- The change could enhance visibility and support for the issues faced by farm labourers.
2. Analyse the implications of introducing a comprehensive crop insurance scheme for small-holding farmers.
- The scheme would provide a safety net against crop losses for farmers with land holdings up to two hectares.
- It can encourage investment in better farming practices, enhancing productivity.
- By offering timely compensation, it reduces reliance on high-interest loans from informal sources.
- The insurance could help prevent debt traps, ensuring financial stability for smallholder farmers.
- Similar to the Pradhan Mantri Jan Arogya Yojana, it promotes social security for vulnerable farming communities.
3. Examine the role of Minimum Support Price in promoting organic farming and its impact on traditional agriculture.
- MSP for organic crops incentivizes farmers to transition from conventional to organic farming.
- It should be set higher than conventional MSP to compensate for lower initial yields.
- Legal recognition of MSP for organic produce can expand the agricultural market and encourage sustainability.
- This approach aligns with the Swaminathan formula, ensuring fair pricing for all crops.
- It can create a balance between promoting organic practices and supporting traditional agriculture.
4. Estimate the effects of declining budget allocations on the agricultural sector and its workforce in India.
- Declining budget allocations can lead to reduced support for agricultural programs and welfare schemes.
- It may hinder the development of infrastructure and services essential for farmers.
- Over 50% of the population relies on agriculture, making funding cuts detrimental to livelihoods.
- Reduced financial support can exacerbate issues like poverty and food insecurity in rural areas.
- Reversing this trend is crucial for ensuring sustainable agricultural growth and workforce stability.
