Open Forum

New Delhi, 23 October 2025

Farm Interests

WILL NEW SCHEMES BE EFFECTIVE?

By Dhurjati Mukherjee 

 “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,” said Prime Minister Modi recently. Agriculture sustains around 46 per cent of Indian population and employs over 46 per cent of workers, but it generates less than a fifth of the GDP and thus priority to agriculture and agro-based industries is quite natural. 

The Opposition promptly recalled and criticised the Modi government’s three farm laws, highlighting police actions and negative campaigns against protesting farmers, with over 750 reported deaths. While Modi's claim of personal loss to protect farmers was unclear, officials linked his remarks to resisting the US demands for zero-duty market access for American agricultural and dairy products, which India has consistently opposed. 

An important development in the sector is the very recent launch of two mega central schemes with a total outlay of Rs 35,440 crore to transform 100 low-performing agri-districts and increase productivity of pulses to reduce imports. These are highly significant, specially the first one as the country’s productivity needs to be improved by focusing on the low productivity regions. These include PM Dhan Dhaanya Krishi Yojana with an outlay of Rs 34,000 crore and Mission for Self-Sufficiency in Pulses with an outlay of Rs 11,440 crore.   

Meanwhile, the National Mission on Natural Farming with an outlay of Rs 2481 crore 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.  

Despite all efforts, the overall scenario in the sector does not look quite encouraging. A recent National 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. There is no doubt that farmers are poor and experts suggest 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. 

However, questions remain regarding the government’s actions to modernise agriculture, provide training to farmers for diversification into value-added crops, extend additional financial support for such initiatives, and enhance overall productivity. 

After crossing western Uttar Pradesh into Bihar and West Bengal, the Indo-Gangetic plain has productive areas but faces high rural poverty. Rising temperatures have already reduced yields, especially for small farmers in Eastern India, and even prosperous regions like Punjab and Haryana may see declines. This could lead to a drop in overall food supplies soon. Nutritious foods such as vegetables, fruits, pulses, dairy, and millets should remain affordable and accessible. 

Two aspects that need to be given special attention are diversification of food crops where the Indian Council for Agricultural Research (ICAR) has a big role to play though at the sub-divisional and block levels its presence is not evident. Training of small and marginal farmers, especially in the interior and backward regions, and giving them seeds and other inputs and technical knowledge to diversify crops and earn better returns, which should have been taken up in right earnest, is virtually absent. 

Since the time of the late agricultural scientist, Dr. M.S. Swaminathan, scientists have suggested certain measures which include double cropping, better rotation of crops, fighting plant diseases and pests, diversification of crops etc. However, it may be noted that 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. 

Another aspect is marketing, which included recent developments such as the Centre releasing a draft national policy framework on agriculture marketing. The framework recommends that states transition to a unified national market for agricultural products through a single licensing or registration system and a single fee. Additional suggestions include permitting private wholesale markets, allowing direct purchase by processors, exporters, organised retailers, and bulk buyers at the farm-gate, designating warehouses and cold storages as deemed markets, enabling the establishment and operation of private e-trading platforms, and rationalising market fees and commission charges. However, reports suggest limited progress so far. With the US imposing a 50% tariff, exports may face challenges, and the government will need to assist exporters in identifying alternative markets. 

India lacks a comprehensive agricultural policy and invests only about 1% of its GDP in R&D, far below countries like Israel, where both government and private sectors contribute significantly more. Efforts by the Planning Commission, Niti Aayog, and farm unions to boost agricultural R&D funding have been ineffective, with funding declining as a percentage of GDP over recent decades. Improving crop yields could reduce dependence on pulses and edible oil imports. Additionally, India's agricultural sector faces challenges from U.S. tariffs and climate change. 

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 must 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. It needs to be reiterated that agri exports are vital in improving the conditions of the rural mass, but the ruling dispensation has, over the years, not taken any significant step in transforming agriculture. 

It is important to evaluate farm distress and explore ways to make agriculture more profitable. One approach could involve identifying districts suitable for cash crops that may increase farmers’ incomes. Considering the opportunities in agriculture, agro-based industries, and export potential, the government, in cooperation with state governments and agricultural experts, may develop an action plan to address these issues.---INFA 

(Copyright, India News & Feature Alliance)