Union government has set a target of doubling the farmers’ income by 2022.
This goal can be achieved only with structural reforms in the agricultural sector.
What is the status of farmer’s income in India?
Consortium of Indian Farmers Association, point out the median agricultural income as Rs.1,600/month.
The National Sample Survey Organisation (NSSO) data for 2012-13 had revealed that nearly two out of three farm families were unable to earn enough to meet the household expenses.
Nearly 80% farmers are not covered under the minimum support prices mechanism.
Recent discussion paper of the NITI Aayog has revealed that about 2/3rd of rural income now come from non-agricultural sources.
What are the concerns with government’s target?
Union government has implemented seven-point action plan to boost farm incomes.
It does not lay adequate emphasis on much-needed reforms in areas like input pricing, marketing output, managing land (ownership and leasing), and importing and exporting farm goods.
Any sort of income cannot be guaranteed through a law, especially in the case of volatile occupation like agriculture.
Even insurance, a time-tested tool to hedge risks, has not been wholly effective in farming.
Income generation is an economic issue that requires market-based solutions and it needs to be viewed in the perspective of economic distress in rural areas.
What measures can address the agricultural income woes?
National Commission on Farmers, recommended that agricultural growth should be measured in terms of rise in farm income rather than increase in production.
The objective of this recommendation was to keep farm income in constant focus so as to help evolve income-centric policies, this needs to be implemented.
Scrapping Essential Commodities Act, will allows the government to put curbs on the movement and stockholding of farm products and frequently change the import and export duties.
Linking domestic prices with Customs tariffs will ensure so imports not becoming cheaper than the local produce.
Encouraging integrated farming involving agriculture’s allied activities, such as horticulture, floriculture, beekeeping, poultry, piggery, fisheries, and similar others will address the concerns.
Agro-based industry needs to be setup in and around rural areas to provide more opportunities for employment and income for cash-starved farmers.
