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Introduction
The agriculture based Indian Economy needs high agriculture Income for the
farmers who feed the 1.25billion Indian population. Not only this like developed
countries who despite having much lesser area under cultivation, export number of
farm products, India also needs to be a prominent exporter of agriculture produce.
This will attract more and more people towards agriculture, the backbone of the
country.
Historically, India has been an agrarian country. But it was only after we attained
independence that the future of the sector brightened. One of the biggest spots in
the history of Indian agriculture was between the 1950 and the late 1960s – the
Green Revolution resulted in incremental increase in production of food grains,
especially wheat and paddy
The vision of doubling farmer’s income 2022 by Honourable Prime Minister
Narendra Modi was announced by the Honourable Finance Minister shri Arun
Jaitley during his budget speech on February 29, 2016
After the green Revolution, India’s food production multiplied by 3.7 times while
the population multiplied by 2.55 times
The food production has increased from 51 m tones in 1950-51 m to 273 m tonnes
in 2016-17
The net result has been a 45% increase in per person food production, which has
made India food self sufficient at aggregate level and also a net food exporting
country.
AGRICULTURAL HOUSEHOLD IN INDIA
According to situation assessment survey 2013, an agricultural household is
defines as a household receiving some value of produce more than Rs.3000 from
agricultural activities and having at least one member self – employed in
agriculture either in the principal status or in subsidiary status during last 365 days.
NSSO data on Consumption Expenditure Survey for year 2011-12 reveals that one
– fifth of the agricultural households were having below the poverty line.
During the same period, the average monthly consumption expenditure per
agricultural household was Rs 6,223.
WHY DOUBLE FARMER’S INCOME?
Past strategy for development of the agriculture sector in India has focused
primarily on raising agricultural output and improving food security. The net result
has been a 45 per cent increase in per person food production, which has made
India not only food self-sufficient at aggregate level, but also a net food exporting
country.
The strategy did not explicitly recognise the need to raise farmers' income and did
not mention any direct measure to promote farmers welfare. The net result has
been that farmers income remained low, which is evident from the incidence of
poverty among farm households.
Low level of absolute income as well as large and deteriorating disparity between
income of a farmer and non-agricultural worker constitute an important reason for
the emergence of agrarian distress in the country during 1990s, which turned quite
serious in some years. The country also witnessed a sharp increase in the number
of farmers suicides during 1995 to 2004 - losses from farming, shocks in farm
income and low farm income are identified as the important factors for this. The
low and highly fluctuating farm income is causing detrimental effect on the interest
in farming and farm investments, and is also forcing more and more cultivators,
particularly younger age group, to leave farming. This can cause serious adverse
effect on the future of agriculture in the country.
It is apparent that income earned by a farmer from agriculture is crucial to address
agrarian distress and promote farmers welfare. In this background, the goal set to
double farmers' income by 2022-23 is central to promote farmers welfare, reduce
agrarian distress and bring parity between income of farmers and those working in
non-agricultural professions.
1. Improvement in productivity
2. Resource use efficiency or saving in cost of production
3. Increase in cropping intensity
4. Diversification towards high value crops
The quantitative framework for doubling farmer’s income has identified seven
sources of growth. These are:
1. Increase in productivity of crops
2. Increase in production of livestock
3. Improvement in efficiency of input use (cost saving)
4. Increase in crop intensity
5. Diversification towards high value crops
6. Improved price realization by farmers
7. Shift of cultivators to non-farm jobs
Is Government really keen in doubling farmer’s income..?
1. Pradhan Mantri Krishi Sinchai Yojana (PMKSY) – Per crop more crop to
bring more area under irrigation and also increase water use efficiency
2. Soil health card scheme, Neem coated urea – Plans for direct benefit transfer
in fertilizer subsidy are all right steps to bring input cost. But pesticides and
micro nutrients are in high tax slabs in GST.
3. Pradhan Mantri Kisan Sampada Yojana (PMKSY) – It has been started for
value addition Mega food park scheme, FDI in processing is also welcome
steps. But India process only less than 2% of its fruits and vegetables but it
stand 40% in developed countries. We need to scale up abundantly.
4. We are really lagging far behind in infrastructures like cold storage,
warehousing, logistics. Post harvest loss should be minimized.
5. Introduction of new crop insurance schemes to mitigate risks at affordable
cost like PMFBY ( Pradhan Mantri Fascal Bima Yojana )
6. Formation of FPO’s to benefit small farmers, women and tribal farmers.
Problems with India Agriculture
One of the main problems of Indian agriculture is the small size of land
holdings.
Corruption in cooperatives is a well-known problem, particularly in
Maharashtra. Besides, the government does not have the money to pump into co-
ops.
Various experts have cast a pall of gloom over the claim whether it is indeed
possible to double incomes by 2022-23. This is primarily because agricultural
growth in the post-reform period, barring a few exceptional years, has been
stagnant and has historically failed to meet the target set by the government. For
example the average annual rate of growth in agriculture and allied sector during
the period from (1991-92 to 2013-14) comes at 3.2% – lower than the targeted 4%.
Niti Aayog has suggested reforms in two areas: marketing reforms and
minimum support price (MSP) reform. It is important to see how the suggested
actions will double the income of the farmers’ and to what extent the government
is serious about it.
It must be noted here that since agriculture is a state subject, the central
government cannot do much in marketing reforms and minimum support price
(MSP) reform apart from facilitating the reform process.
On the one side resources like water and land are limited and on the other
hand land holding is getting fragmented. The problem is further compounded by
rising input costs.
Findings
Is it possible to double farmer’s income by 2022-23?
Doubling agricultural income by 2022 is a huge task but is also one that is crucially
needed. With majority of the population dependant on agricultural activities, no
development can be said to be meaningful unless it includes the needs of this
sector. Increasing farmer suicide rates and erratic weather patterns further add to
the problem. There are intense difficulties and therefore, the focus of the
government on this sector is much needed.