Why in the News?

Agriculture has been given little attention, even though the National Crime Records Bureau (NCRB) data shows that 1,00,474 farmers and agricultural workers took their own lives between 2015 and 2022.

What are the root causes of the current agrarian distress faced by farmers in India?

• Unmet Minimum Support Price (MSP) Promise: Despite repeated promises, the government has failed to implement the MSP at the rate of C2+50% (one-and-a-half times the comprehensive cost of production) as recommended by the M.S. Swaminathan Commission.
• Rising Input Costs and Economic Burden: The cost of agricultural inputs such as fertilizers, seeds, insecticides, diesel, water, and electricity has been steadily rising.
• Inadequate Government Support and Infrastructure: Government allocations to agriculture and allied sectors have been declining, from 5.44% of the total budget in 2019 to just 3.15% in 2024.
  • At the same time, public investment in irrigation and power infrastructure has decreased, leading to water scarcity and unreliable electricity supply.

How can policy reforms effectively address the challenges faced by farmers?

• Implementation of MSP: Establishing a statutory MSP at C2+50% is essential to ensure that farmers receive fair compensation for their produce. This reform would help alleviate financial distress and reduce the incidence of farm suicides.
• Subsidy Increases and Cost Controls: The government should raise subsidies for agricultural inputs and impose strict controls on prices charged by private corporations for fertilizers and seeds. Supporting public sector production can help stabilize prices and ensure availability.
• Comprehensive Loan Waiver: A one-time loan waiver for farmers can provide immediate relief from debt burdens. This measure should be coupled with long-term strategies to prevent future indebtedness through better financial management and support systems.

What role do government support and institutional frameworks play in alleviating farmer distress?

• Financial Assistance and Subsidies: Government support through subsidies for fertilizers, seeds, and irrigation systems helps reduce the financial burden on farmers. For example, the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) provides direct income support to farmers, aiding those facing economic hardship.
• Crop Insurance and Risk Mitigation: Institutional frameworks such as the Pradhan Mantri Fasal Bima Yojana (PMFBY) offer insurance schemes to protect farmers against crop losses due to natural disasters, thereby reducing the risk of distress when unforeseen events occur.
• Market Access and Price Support: The government ensures fair prices and stable markets through Minimum Support Price (MSP) and procurement schemes. The Food Corporation of India (FCI) buys surplus crops like wheat and rice from farmers at MSP, offering a safety net during market fluctuations.
• Agricultural Credit and Loans: Institutional frameworks like the NABARD (National Bank for Agriculture and Rural Development) and other banks offer affordable loans to farmers, allowing them to invest in better farming techniques or recover from losses, thus mitigating financial stress.
  • For example, Kisan Credit Cards (KCC) provide short-term credit to meet the farmers’ needs for inputs and daily expenses.

Way forward: 

• Strengthen Infrastructure and Support Systems: Invest in reliable irrigation, power supply, and crop insurance schemes, ensuring farmers have access to resources that help them cope with climate-related challenges and reduce dependency on private traders.
• Enhance Financial Accessibility and Risk Management: Expand access to affordable credit, implement statutory MSP at C2+50%, and provide better financial literacy programs to help farmers manage debts and reduce vulnerability to market fluctuations.

Mains PYQ:

Q Explain various types of revolutions, took place in Agriculture after Independence in India. How these revolutions have helped in poverty alleviation and food security in India? (UPSC IAS/2017) 

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