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2016
What does this actually means, what will enable this, how feasible is this?
After battling to consecutive drought years, by the grace of Almighty monsoon this year is
progressing normal. The buzz around farmers, farmers welfare and doubling the income seems to
be picking up and rightly so!
2016
Doubling the income of farmers by end of 13th Five year plan (2022)
While in the 12th Five Year plan we have seen the real farm incomes have plummeted as compared
to previous decade, it not wishful thinking that incomes of farmers can be doubled by adopting a
multipronged approach which efficient implementation framework.
Doubling the real income of farmers by 2022, on sustainable basis by laying focus on following
areas
1. Doubling (2X) the productivity, yield and efficiency in agriculture
2. Increasing area under irrigation to 60% including doubling (2X) the micro-irrigation
program
3. Double (2X) the flow of investment credit to Agriculture Sector under a value chain
approach
4. Doubling (2X) the Agro processing and value addition services sector
5. Double (2X) the income by creating a framework for market driven remunerative farm gate
price as also instituting suitable minimum support price mechanism to protect the interest
of farmers.
6. Double (2X) the investment in allied activities like livestock, poultry, beekeeping and
fisheries
7. Double (2X) the agriculture market efficiencies and curbing the number of existing
intermediaries to half ( 1/2 X) by expediting Unified National Agriculture Market.
To enable this "Agriculture needs to be liberated from traditional policy framework for it grow
and prosper. Effective implementation of policy initiatives will call for comprehensive reforms,
will and strong public, private and people partnerships in the management of agriculture in
India". The existing Public and Private sector investments, Government schemes and subsidies,
if dovetailed effectively and channelized efficiently can make this a reality.
The Economic Survey 2016-17 revealed that average income of a farmer in Rs. 1,670 per month
which can be doubled but does that mean that a farmer will getting remunerative price for farming.
We need to understand in an agricultural household crop cultivation provides on an average
provides 63% income and remaining comes from other sources. It is also important to recognize
that sizeable proportion of small and marginal agriculture households who undertake cultivation,
livestock activities and also have individual family members who are wage earners.
2016
It is therefore important to realize that in addition to cultivation there are other income sources like
allied agriculture, means of wage earning that can contribute to doubling of income of agricultural
households.
Agriculture credit is the most critical non-land input for development of Agriculture. Credit Flow
Policies to agriculture need to be more focused on capital investment in agriculture rather than just
ensuring continuity of agriculture by crop loans. The multiple studies seem to suggest that the
doubling of aggregate credit flows did not had any sizeable impact at the agriculture household
level income as also in creating productive assets. It is important to recognize that the flow of credit
for short term ( crop loan for continuing agriculture) and for long term ( for creating assets and
capital formation) will hold key to help farmers especially small and marginal to create productive
assets that generate sustainable income.
Is it wishful? Is it achievable?
Given the series of initiatives and reforms doubling the real incomes of agricultural households is
not a mere wishful thought. It is doable and has to be an area of top priority. Agriculture needs to be
2016
liberated from traditional policy framework for it grow and prosper. Effective implementation of
policy initiatives will call for comprehensive reforms, will and strong public, private and people
partnerships in the management of agriculture in India. A sound Agriculture & financial policy can
bring lasting improvement in the country and can propel India to next Growth trajectory of 12%.
It is important to realize that India is poised to overtake China to become the world's most
populous nation by 2022, our farmers will have to gear up and toil harder to feed more than 140
billion mouths ( projected 2030), ploughing the same fragmented landholdings and depending on
the water resources which are steadily depleting.
Hope by 2022 our farmers should not be looking up to skies for our survival.
Its not just matter of farmers income but a matter of survival and food security of the country.
We have no other choice but to gear up !
For a sustainable, inclusive and preferred future!
Manoj Rawat
Head, Agribusiness Group
RBL Bank, Mumbai
India
mkrawat@gmail.com