Since past 4 to 5 years Govt. of India is coming up with various reforms for doubling income of farmers by 2022. However, OECD-ICRIER report states that the gross farm revenues fell 14 percent on an average between 2000 and 2016. 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 that shows their financial status. 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). Inadequate income of farmers affected farm households. Rising indebtedness, lesser financial inclusion, and absence of insurance cover are associated with less income of farmers. The main reason of low farmer’s income is they are not getting good price for their agricultural produce. Therefore, accelerated the existing reforms and brought fresh policy reforms such as uses of funds for better Infrastructure and innovation, encouraging the private sector in the domestic agri-market regulations, comprehensive agri export policy, etc.
How can increase farmers income? 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, and improvement 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.
What are the 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. Doubling farmer’s income is the need of time as rural households are depending on agriculture and allied activities. 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. Farmer’s welfare is possible only when there is sharp rise in their income.
Doubling farmers income through agriculture exports: Food and Consumer Affairs Minister Piyush Goyal mentioned last week that the agriculture exports have an important role to play in doubling farmers’ income, and stressed the need for boosting India’s outward shipments to be among top-5 nations in farm exports. India has all the potential to become agricultural exports hub and food basket of the world. India’s export of agricultural and allied products in 2020-21 grew by 17.34 per cent to USD 41.25 billion, as per the government data. Further, under ‘One District-One Product’, 106 products have been identified from 103 districts and districts should be promoted as export hubs to ensure that local goes global. There is high possibility of generate higher income and better-quality life when the transform farmers into entrepreneurs with focusing more on value added products and exports. The export linked farming activity its good initiative for making the farming a profitable economic activity as its engage farmers into modern trade and commerce-related activities and thereby increase their income significantly. Indian agriculture has so much to offer in international market, fresh as well as processed agriculture products. Every region of India has some agriculture produce which has export potential. However, India’s export share in the world market is very less, one of the major reasons being less involvement of farmers in the export chain. Therefore, export competitiveness is the key to increase India’s share in global agricultural exports market and that will reflect on increasing farmers income domestically.
