Open Forum

New Delhi, 20 August 2025

Farm Interests

IS GOVT REALLY CONCERNED?

By Dhurjati Mukherjee 

It was good to hear Prime Minister Prime Minister Modi’s recent assertion that the interests of farmers are top priority. “India will never compromise with the interests of the farmers, livestock holders and fishermen. And I know that I will have to personally pay a very heavy price for this, but I am ready,” he said. Agriculture sustains around 46% of Indian population and employs over 46% of workers but it generates less than a fifth of the GDP and thus priority to agriculture and agro-based industries is quite natural. 

However, the Opposition was quick to scoff at the assertion and recall Modi government’s three farm laws wherein the peasants were subjected to police excesses and a smear campaign by the BJP and its ecosystem was evident. Over 750 farmers were reported to have died during the prolonged protest. Prime Minister’s remark should be seen in the context of the tariff arm-twisting by the Trump administration, but it wasn’t clear how Modi would suffer heavy personal loss. Reports so far suggest the US demanding zero-duty access to the Indian market for all its agricultural and dairy products, which Delhi was firmly resisting in the on-going trade negotiations. 

An important development in the sector is the launch of the National Mission on Natural Farming with an outlay of Rs 2481 crore at an early date aimed at promoting sustainable farming on 750,000 hectares of land and increasing the income of 10 million farmers, according to government officials. The central government will be contributing Rs 1584 crore towards the scheme with states accounting for Rs 897 crore.  

However, despite efforts, progress in sector doesn’t look encouraging. A recentNational Bank for Agriculture and Rural Development(NABARD) report stated that farm households earn Rs 13,61 per month on average of which actual farm income is just Rs 4476. The rest is income from other work. Undoubtedly, farmers are poor and experts suggest that the government must come forward to free them from the yoke of subsistence farming. Fragmentation of farm size as also lack of modernisation of agriculture has come in the way of increase in output while the failure of industry to create jobs has led to more people being dependent on agriculture. 

But the question arises what the government is doing either to modernise agriculture and train farmers to diversity towards value-added crops or extend more financial assistance for such diversification and to increase productivity? Plus, it must also look into the fact that agriculture is being affected by climate change in most parts of the country. 

In the Indo-Gangetic plain, after crossing western Uttar Pradesh into Bihar and West Bengal, there are areas of productivity but also high rural poverty. A temperature rise has already affected production in declining output, affecting small and marginal farmers in Eastern India. More prosperous regions such as Punjab and Haryana are also likely to see a lowering of productivity. 

A decline in agricultural productivity is expected to result in an overall reduction of food supplies reaching the market soon. This downturn will directly affect the availability and cost of essential items such as vegetables, fruits, pulses, dairy, and millets. These staples, which ought to be accessible to consumers at reasonable prices, may become increasingly difficult to obtain as production wanes. 

Attention should be given to diversifying food crops, a task where the Indian Council for Agricultural Research (ICAR) could contribute more visibly at local levels. Small and marginal farmers, particularly in remote areas, need training, seeds, inputs, and technical support to diversify crops and improve incomes—support that is currently lacking. 

Since the time of the late agricultural scientist, Dr. M.S. Swaminathan, certain measures have been suggested which include double cropping, better rotation of crops, fighting plant diseases and pests, diversification of crops etc.  However, productivity enhancing investment in agriculture, depends not only on the state of knowledge but also on conditions governing the adoption of technology; it depends on the land tenure system which determines how the agricultural produce is divided between owners of land and agricultural labour. 

The other important aspect is marketing and the year started with some good news with the Centre coming out with a draft national policy framework on agriculture marketing suggesting states move towards a unified national market for agriculture produce through single licensing/registration system and single fee. Some key suggestions include, allowing setting up of private wholesale markets, permitting wholesale direct purchase by processors, exporters, organised retailers, bulk buyers from farm-gate, declaring warehouses and cold storages as deemed markets, allowing establishment and operation of private e-trading platform and rationalisation of market fee and commission charges. 

However, reportsso far indicate not much progress. And now with the US threatening 50% tariff on exports, the government will need to look for new markets.At same time, it’s disturbing that India doesn’t have a proper agricultural policy. While Israel spends 6% of its GDP on R&D, which is twice of the global average, half of that funding comes from the private sector. In contrast, India invests around one% and languishes as a developing nation. Both the Planning Commission and its successor, the Niti Aayog failed to convince their political bosses to increase R&D funding. 

Additionally, neither have farm union leaders sought funds for agricultural R&D. Increasing farm income is indeed a great challenge for the country and the policy makers must sincerely look into the matter. The small and marginal farmers are in great distress, and this can’t be allowed to continue for long, if agriculture has to contribute in a bigger way to GDP.  Renewed efforts are necessary to make agriculture remunerative by promoting cash crops, setting up peasant cooperatives and agro-based industries. Besides, agri exports are vital in improving the conditions of the rural mass but ruling dispensations over the years haven’t taken any significant steps. 

In conclusion, it is essential to conduct a thorough analysis of farm distress and implement measures to make agriculture more profitable. In addition to the previously outlined recommendations, specific districts should be identified where the cultivation of cash crops could increase farmers’ incomes. While this is achievable, given the opportunities in agriculture, agro-based industries, and export potential, it is imperative that the government pursue this initiative seriously. This should be accomplished by developing a comprehensive action plan in collaboration with state governments and agricultural experts.Interest of farmers needs action not words alone. ---INFA 

(Copyright, India News & Feature Alliance)