16-December-2024-Special-Article

AGRARIAN DISTRESS IN INDIA

Agriculture is the backbone of India’s economy, providing livelihoods to nearly half of the population. However, the sector is in severe crisis, marked by low farmer incomes, escalating debt, and stagnant growth. The Supreme Court (SC)-appointed High-Level Committee recently submitted an interim report highlighting the causes and implications of this agrarian distress, along with possible solutions.

About the Supreme Court-Appointed High-Level Committee

• Formed in September 2024 by the Supreme Court.
• Chaired by former Punjab and Haryana High Court judge Nawab Singh.
• Objective: Resolve grievances of farmers agitating at the Shambhu border and suggest long-term solutions to the agrarian crisis.

Key Findings of the Committee Report

Income Crisis

• Farmers earn a mere Rs 27 per day from agriculture.
• Average monthly income of agricultural households stands at Rs 10,218, far below the basic cost of living.

Rising Debt

• Institutional loans in Punjab (Rs 73,673 crore) and Haryana (Rs 76,630 crore) have grown significantly (2022-23).
• Non-institutional loans (e.g., private lenders) add further pressure:
• Punjab:3% of debt.
• Haryana: 32% of debt.

Farmer Suicides

• Over 4 lakh farmers have committed suicide since 1995 (NCRB data).
• A Punjab survey recorded 16,606 suicides (2000-2015), especially among small farmers and landless workers.
• High indebtedness is the leading cause of suicides.

Stagnant Agricultural Growth

• Growth rates in agriculture: 2% in Punjab and 38% in Haryana (2014-2023).
• This stagnation is much below the national average and impacts farmer incomes.

Disproportionate Employment

• 46% of India’s workforce depends on agriculture, but the sector contributes only 15% to the GDP.
• Issues like underemployment and low wages worsen rural poverty.

Impact of Climate Change

• Depleting groundwater, droughts, unpredictable rainfall, and extreme weather events threaten productivity.
• Climate change further endangers food security.

Implications of the Report Findings

Impact on the National Economy

• A declining agriculture sector threatens economic stability and could lead to increased rural-urban migration.

Sustainability and Food Security

• Decreasing productivity, coupled with climate change, could compromise India’s food security.
• Rural poverty and hunger may worsen due to the lack of reforms.

Social Stability

• Persistent farmer suicides and despair within the farming community may result in social unrest and dissatisfaction.

Major Challenges Faced by Indian Agriculture

Limited Access to Credit

• 86% of farmers are small and marginal (Agriculture Census 2015-16).
• Many lack access to institutional credit, restricting their ability to invest in seeds, fertilizers, and machinery.

Fragmented Landholdings

• Average landholding size: 08 hectares.
• Small landholdings make large-scale, modern farming difficult, resulting in lower productivity and incomes.

Outdated Farming Practices

• Many farmers still rely on traditional techniques.
• Limited adoption of modern technology hinders efficiency and sustainability.

Water Scarcity and Irrigation

• 60% of India’s agriculture is rainfed and depends on monsoons.
• Only 52% of gross sown area is irrigated (NITI Aayog 2022-23), making agriculture vulnerable to droughts.

Soil Degradation

• 30% of farmland faces soil degradation due to excessive chemical use and poor practices (FAO).
• Soil erosion reduces fertility and lowers productivity.

Inadequate Infrastructure

• Post-harvest losses of 15-20% occur due to poor storage, cold chains, and road networks (ICAR).
• Farmers struggle to access markets and realize fair prices.

Government Schemes for Farmer Welfare

• PM Kisan Samman Nidhi: Provides income support to farmers.
• PM Fasal Bima Yojana (PMFBY): Crop insurance scheme.
• PM Krishi Sinchai Yojana (PMKSY): Promotes irrigation.
• e-NAM (e-National Agricultural Market): Online market platform for better price realization.
• Soil Health Card Scheme: Assesses soil quality for better farming.
• Formation of 10,000 FPOs: Supports Farmer Producer Organizations.
• Agriculture Infrastructure Fund: Financing for farm infrastructure.
• Neem-Coated Urea: Reduces fertilizer waste and improves efficiency.

Solutions to Address Agrarian Distress

Debt Relief Measures

• Immediate loan waivers to ease farmer burdens.
• This can help reduce financial stress and prevent suicides.

Legal Recognition of MSP

• Provide Minimum Support Price (MSP) as a legal guarantee.
• This ensures income security for farmers and protects them from market price volatility.

Promote Organic Farming and Diversification

• Encourage shifting from staple crops to diverse and sustainable farming practices.
• Organic farming reduces environmental degradation and ensures long-term productivity.

Reforms in Agricultural Marketing

• Establish farmer-friendly markets with better infrastructure.
• Reduce intermediaries and improve price realization for farmers.

Rural Employment Generation

• Develop rural-based industries and agro-processing units.
• Implement skill development programs to create alternative job opportunities.

Climate-Resilient Measures

• Promote drought-resistant crops and water management strategies.
• Invest in infrastructure to tackle extreme weather events.

Conclusion:

The findings of the SC-appointed committee highlight the deep-rooted challenges plaguing India’s agriculture sector. Comprehensive measures like debt relief, legal MSP, diversification, and climate resilience are essential to address farmer distress. A focused approach is required to ensure agricultural sustainability and protect the livelihoods of millions of farmers.

Mains Question:

1. “Discuss the causes of agrarian distress in India as highlighted by the recent Supreme Court-appointed High-Level Committee report. (150 WORDS)