Central Idea

• Recently, Prime Minister shared his dream of doubling farmers’ incomes in the year when India completes 75 years of Independence and enters Amrit Kaal. Now that we have entered Amrit Kaal, it is a good time to revisit that dream and see if it has been fulfilled, and if not, how best it can be done. It was a noble dream because unless the incomes of farmers go up, we cannot have sustained high growth of overall GDP.

What is Doubling Farmers Income scheme?

• Doubling farmers’ income is a target set by the government of India in February 2016 to be achieved by 2022-23.
• To promote farmers’ welfare, reduce agrarian distress and bring parity between income of farmers and those working in non-agricultural professions.
• Doubling Farmers Income can directly have a positive effect on the future of agriculture.

Doubling Farmers Income: A Noble Vision

• Improved Farm Machinery and Advanced Technologies: If the income earned by the farmer is doubled, they will have access to better farm machinery and advanced technologies, leading to increased productivity, better quality of seeds, and improved farming techniques.
• Increased Agricultural Productivity: Doubling farmers’ income means increasing agricultural productivity, which is essential for meeting the growing demand for food in the country.
• Improved Quality of Crops: Increasing the income of farmers will not only increase agricultural production but also improve the quality of crops, which is crucial for ensuring food security and meeting quality standards for exports.
• Growth of Indian Economy: Doubling farmers’ income will contribute to the growth of the Indian economy by increasing rural demand for goods and services, creating employment opportunities, and boosting overall economic growth.
• Reduced Incidents of Farmer Suicides: Financial stress is one of the leading causes of farmer suicides in India. Doubling farmers’ income will provide them with financial security, which will reduce the incidents of farmer suicides and improve their overall well-being.

Government efforts in this direction

• Fertilizer subsidy: Fertilizer subsidy budget crosses Rs 2 lakh crore. Even when global prices of urea crossed $1,000/metric tonne, the Indian price of urea remained flat at around $70/tonne. This is perhaps the lowest price in the world.
• PM-Kisan: The government has allocated Rs 60,000 crore to its flagship PM Kisan Samman Nidhi Yojana for the financial year 2023-24.
• PM Garib Kalyan Anna Yojana: Further, many small and marginal farmers also get free ration of at least 5 kg/person/month through the PM Garib Kalyan Anna Yojana.
• Subsidies and crop insurance: There are also subsidies for crop insurance, credit and irrigation (drip). States also dole out power subsidies in abundance, especially on irrigation. Even farm machinery for custom hiring centres is being subsidised by many states.

Evaluation: Impact of all these policies on farmers’ incomes and on environment

• Impact of Input Subsidies and Output Trade Policies on Farmers’ Income: While Input subsidies help raise farmers’ incomes by reducing the cost of inputs such as seeds, fertilizers, and irrigation. Output trade and marketing policies adopted by the government, such as the ban on exports of wheat or the 20% export tax on rice, can suppress farmers’ incomes.
• Pro-Consumer Approach: The current policy approach is pro-consumer rather than pro-farmer, which is a fundamental problem with our policy framework.
• Environmental Damage Caused by Subsidized Inputs and Uncontrolled Procurement Policies: The excessive subsidization of inputs like fertilizers and power, coupled with uncontrolled procurement of paddy and wheat in certain states, is causing severe environmental damage. There is a growing need to rationalize these policies.

Way ahead

• It is crucial to assess the net impact of input subsidies and output trade policies on farmers’ income to understand where they stand.
• Realign the support policies keeping in mind environmental outcomes.
• Millets, pulses, oilseeds, and much of horticulture could perhaps be given carbon credits to incentivise their cultivation. They consume less water and fertilisers. We need to make subsidies/support crop-neutral.
• It is crucial to adopt policies that are pro-farmer and promote their interests, support income growth, and enhance overall economic growth.
• Agriculture today needs innovations in technologies, products, institutions and policies for more diversified high-value agriculture that is also planet friendly.

Notes for Good marks

Agriculture: Crucial sector of the Indian Economy

• Employment: Agriculture engages the largest share of the workforce (45.5 per cent in 2021-22 as per PLFS). Agriculture provides direct employment to around 50% of the Indian population, and it indirectly supports the livelihoods of millions more in allied industries such as agro-processing, transportation, and marketing.
• Food and nutritional security: Agriculture is essential for meeting the food requirements of the country. India is one of the largest producers of rice, wheat, and other cereals, and it is also a significant producer of fruits, vegetables, and spices.
• Contribution to GDP: Agriculture is a significant contributor to India’s Gross Domestic Product (GDP), accounting for around 17% of the country’s total GDP.
• Foreign exchange earnings: India is a leading exporter of agricultural products such as Basmati rice, spices, tea, and cotton. The export of these products earns valuable foreign exchange for the country.
• Rural development: Agriculture plays a vital role in the development of rural areas by providing employment and income opportunities, promoting entrepreneurship, and improving the standard of living in these areas.
• Environmental sustainability: Agriculture is closely linked to the environment, and sustainable agricultural practices can help conserve natural resources, reduce carbon emissions, and promote ecological balance.

Conclusion

• On the question of doubling farmers’ income, we must realize it is going to take time. It can be done by increasing productivity through better seeds and better irrigation. It will have to be combined with unhindered access to the markets for their produce. Further, diversifying to high-value crops, and even putting solar panels on farmers’ fields as a third crop will be needed. It is only with such a concerted and sustained effort we can double farmers’ incomes.

Mains Question

Q. What do you understand by Doubling famers income? Enumerate the efforts taken by the government and what needs to be done to achieve the target?

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