Doubling Farmer’s Income
Present circumstances:
- The Indian government is attempting to double farmer earnings in the year when it celebrates its 75th anniversary of independence and enters Amrit Kaal.
- Now that we have reached Amrit Kaal, it would be a good idea to reflect on that dream and determine whether it has come true, and if not, how it might be done.
The country’s total development depends on the development of its agriculture:
- The GDP as a whole cannot grow at a sustained high rate unless farmer incomes rise.
- This is because the manufacturing sector runs into a demand restriction right after meeting the demand of wealthy urban customers.
- because most people are employed in agriculture (45.5 per cent in 2021-22 as per PLFS). In order to ensure the long-term, rapid expansion of the overall economy, focusing on agriculture is the wisest course of action.
- Also, agriculture must guarantee the security of food and nutrition for the largest population on the globe.
- But in order to achieve this aim in the current climate, it is necessary to take steps to maintain the planet’s vital resources, such as the soil, water, air, and biodiversity. There is a paradox right here. I’ll explain.
Governmental projects and programmes in the agriculture sector, as well as concerns related to them:
- By providing programmes and subsidies like the fertiliser subsidy, which has a budget of more than Rs 2 lakh crore, the government has taken various steps to ease the financial burden that farmers must bear while paying for supplies. The price of urea in India stayed constant at roughly $70 per tonne even while urea prices hit $1,000 per metric tonne abroad. The cost might be the lowest it has ever been.
- PM Kisan’s proposal to support farmers’ income.
- The PM Garib Kalyan is another Several small and marginal farmers are given free meals of at least 5 kg per person every month through the Anna Yojana programme.
- In addition, there are subsidies for banking, agricultural insurance, and irrigation (drip).
- Also, governments liberally provide out power subsidies, especially for irrigation. Some governments offer financial assistance for everything from customised recruiting firms to farm equipment.
- All of this is true, and the annual sum of these subsidies will undoubtedly be higher than Rs 4 lakh crore. Yet, we must consider how these will impact both the environment and agricultural earnings.
- The CAG should conduct an audit of all federal and state-provided subsidies to determine how they impact farmer income and the environment.
- The audit’s conclusions are not likely to be well received if they are put into practise. But that might motivate us to make these regulations simpler.
There are several programmes in the agricultural sector that are being criticised:
- On the one hand, input subsidies do help farmers earn more money, but it’s also possible that the government has imposed output trade and marketing policies that have reduced farmers’ incomes.
- For instance, rice is subject to a 20% export tax, certain commodities are periodically subject to stocking limitations, and numerous commodities are suspended from the futures markets. Wheat exports are also prohibited.
- The results that we have projected do not show a “pro-farmer attitude”. The tactic actually benefits customers. This is the main problem with our policy framework.
- The practise of extensively subsidising inputs, particularly fertilisers and power, as well as the guaranteed and continued acquisition of wheat and paddy, at least in some selected states, is having a negative impact on the environment. They are all begging for an explanation.
Conclusion:
- Undoubtedly, increasing farmer income will take some time. Nonetheless, it is still possible to achieve this by raising productivity with better irrigation and seeds.
- They must also have unlimited access to the best markets for their produce in addition to that.
- It will also be vital to diversify into high-value crops, and on farmer farms, solar panels might even be planted as a third crop. With such a committed and sustained effort, one can only hope to quadruple farmers’ incomes. The dream won’t come true if not.
- Moving ahead
- One option to move forward is to reorient these assistance programmes with an eye towards environmental outcomes. Possibly millets, pulses, oilseeds, and much of horticulture might be given carbon credits to promote its cultivation. They need less fertiliser and water.
- In order to diversify the crops and increase the income of millet farmers, the government must extend the MSP’s applicability to millet crops.
- For more ecologically friendly, high-value agriculture that is likewise diverse and diversified in terms of products, institutions, and policies, reforms are needed.
