Looking at agriculture from the social safety net laws is perhaps the reason behind agriculture not being treated as an income generator, and this itself has most of the time contributed to farm distress. Critically analyze the statement w.r.t. various competitive support offers made through different income security schemes for the farmers.
The political discourse on farm distress in India has mainly focused on support to farmers, e.g. NYAY, PM Kisan Samman Nidhi, Ryth Randher Scheme (Telangana) and KALIA in Odisha. But without alternate opportunities, there would be no increase in supply. So what has failed India’s agriculture is market for output since the unifying principle behind the schemes is income or livelihood support which is in the spirit of social safety net. Social protection programs aim at addressing underlying market failure relieving that this would help households out of poverty but it is perhaps the reason behind agriculture not being treated as an improve generator and subsequent farm distress.
see all WHY IS AGRICULTURE SECTOR IN DISTRESS IN INDIA?
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What needs to be done
- Instruments of achieving agriculture productivity and income growth and it should be specific for that purpose and not as a security net.
- When it comes to farm distress, the programs must address not just income deficit but also structural vulnerabilities that make it persistent.
- Since now the nature of the crisis in agriculture has changed from being climate driven per be to market driver hence there is surplus production of several commodities got farm incomes have been low and volatile owing to behaviour of prices.
Potential and persistent distress
- The attainment of self-sufficiency in creating could not preclude the onset of agrarian and agricultural development crisis in India in the decades following GR.
- Agriculture income has increased only 3 times since 1983-84.
- According to NSSO – 70% of farmers earn less than 15 thousand and 75% of them are marginal landholders. Only 10% of the total earn more than 30 thousand annual per capita income.
- Agricultural share in GDP has fallen short of its share due to declining factor productivity in agriculture and reducing production differential between farm and non-farm sectors.
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Hence distress is neither race not sporadic.
The most widely attributed reasons are
- Indebtedness and inadequate across to formal credit.
- Show the pace of irrigation expansion
- Pricing costs of cultivation
- Non-remunerative prices
- Declining public investment without compensating private
- Deteriorating agricultural research and innovation
- Crumbling agricultural extension systems
- Neglect of agriculture in the design and implementation of Government programme and policies over several decades
- The tag of real earning
- There is an issue of asymmetric price transmission with love prices affecting the farmers and high prices, not the transmission.
The way forward and cure of farm distress can be Product differentiation through
- Food safety and quality certification through a credible system of grading, geographical indicators and other forms of branding.
- In developing countries, consumers are immigrated pay for higher quality food, inspected and organic.
- By mainstreaming the India good agricultural Practices (INDGAT) certification since India is the largest agricultural producer but not exporter.
Food safety and quality-driven markets rely significantly on reputation and there in domestic standards also become stepping Stones for high-end markets.