Agrarian disaster


  • The agrarian disaster has taken a political flip with each celebration making an attempt to painting itself because the saviour of the farming group.
  • There isn’t any critical thought from any of them on the best way to revive the agrarian financial system.
  • All of them have been parroting the standard prescriptions of farm mortgage waiver and a extra beneficiant and higher applied minimal help value (MSP).
  • Most of those are time-tested schemes which have been provided for many years. The irony can be that the majority political activists and farmers’ organizations have additionally purchased these concepts as the one methods of saving the farmer and agriculture.


  • It’s now well-known that farm mortgage waivers aren’t any answer to the issue of credit score defaults in agriculture.
  • The cycle continues as a result of it’s at all times accompanied by a decline in funding in agriculture.
  • The agricultural investments have declined in actual phrases by 3.5% each year, the sharpest decline in final three many years.
  • Such a scheme can be anti-farmer with a majority of small and marginal farmers out of institutional credit score.
  • These farmers who’re additionally probably the most weak, farm mortgage waivers really improve the price of cultivation with declining funding.


  • Within the case of MSP bulletins, which have remained paper tigers besides within the case of rice and wheat.
  • However even for these two crops, the regional variation within the beneficiaries has at all times been skewed in favour of richer states of Punjab, Haryana and Andhra Pradesh and, inside them, it has at all times been the wealthy surplus farmers who’ve benefited out of it.
  • For the remaining 23 crops, for which MSP is introduced, there has neither been a secure coverage regime of procurement and disposal, nor has there been any substantial effort in making certain availability of promoting infrastructure.
  • The announcement of MSP for kharif crops this yr with a watch on the election has not managed to lift costs for a majority of crops, whose costs have declined lately.

Limitations for other corps

  • For a majority of those crops, together with pulses and garlic, the market costs proceed to stay under the MSP within the absence of market intervention by the federal government.
  • It’s not that the state and central governments are unaware of the deficiency of those measures.
  • State governments have tried progressive concepts and strategies to handle these issues. Madhya Pradesh tried the ‘bhavantar’ scheme, which was meant to supply earnings help by offering the value differential to farmers.
  • Inside two years, the scheme shouldn’t be solely on the verge of closing down with many farmers but to get the promised cash, but in addition as a result of the associated fee has been an excessive amount of for the federal government with no influence on market costs.
  • The issue actually shouldn’t be a dearth of concepts and the willingness to experiment.
  • The true drawback is lack of acknowledgement that the disaster in agriculture shouldn’t be about incomes alone.
  • Those that are focussing on doubling farmer incomes and offering earnings help to farmers are solely wanting on the short-term palliatives.

Way forward

  • The true drawback is an understanding of the altering nature of agriculture.
  • Indian agriculture is now way more diversified with extremely intensive agriculture.
  • Growing monetization and mechanization of agriculture has additionally elevated the price of cultivation.
  • The long-term answer requires funding in agriculture to make it viable, together with a value help mechanism which takes care of the market inefficiencies.
  • Such a coverage would require giant scale investments in constructing infrastructure, market entry, storage, know-how and revival of non-farm sector to soak up the surplus labour from agriculture.
  • Whereas not one of the stakeholders are prepared to speak about these, the central and state governments have really decreased the actual funding.
  • The issue actually is the shortage of political will to resolve the agrarian disaster.
  • Till then, farmers’ misery is a sizzling political forex that everyone desires to encash throughout the elections with out doing something.

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