Mumbai: Report of ‘Agriculture Policies in India’ states that the gross farm income fell 6 % per year between 2014 and 2016. In spite of getting the necessary subsidies from Government, farmers are able to earn only Rs 50,000 per year or even less.
National Bank for Agriculture and Rural Development (NABARD), conducts NABARD All India Rural Financial Inclusion Survey (NAFIS) in which they find average agriculture household income was a mere Rs 8,931 per month in 2016-17.
Income of farmers is important factor to tackle agrarian crises (Chand, 2016). Rising indebtedness, lesser financial inclusion, and absence of insurance cover are associated with less income of farmers.
The main reason behind low income of farmer’s is that they are not getting good price for their agricultural produce. Therefore, various experts has suggested to accelerate the existing reforms and bring fresh policy reforms such as uses of funds for better infrastructure and innovation rather than giving subsidies, encouraging the private sector in the domestic agri- market regulations, comprehensive agri export policy, etc.
How farmers income can increase?
National Institute of Transforming India (NITI) AYOG in their policy paper has suggested various ways of increasing farmers’ income such as improvement in productivity, using resources efficiently, cutting down the cost of production,increase in the crops yield, diversification towards high value crops,shifting cultivators from farm to non-farm occupations, andimprovement in terms of trade for farmers or fair prices received by farmers.
Challenges in doubling farmers income:
At the onset, this is definitely a good initiative and an attainable one, however, at the same time it poses several challenges such as: active participation of State Government as agriculture is State subject where Centre has limited access.
It is difficult to improve production and productivity on account of resources like land, water and energy because they are limited. Land holding pattern is small and marginal and is getting fragmented day by day.
Linking up of farmers to the international market requires infrastructure from farm gate to market which is not developed at present in India. Impact of climate change on agriculture hampers the production at large.
Essential strategies to be implemented for improving farmers income:
Doubling farmer’s income is essential as it is having positive impact on farmer’s welfare. Experts have suggested specific strategies to improve farmers income such as infrastructure development, development of agricultural ailed sector, value added products, use of technology, farmers and market friendly policies, farmers centric institutional mechanism, bio economics of agriculture, agri business development, linkage of farmers to mass market, protection and safeguard of intellectual property rights and skills formation, productivity of crops, production of livestock, efficiency of input use, crop intensity and diversification in crops.
Inclusive development of rural India is not possible unless empowerment of farmers. Price fluctuations, low income and livelihood dependency are the main causes of agrarian crises, increase in farmers income could solve agrarian crises.
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