Unheard Voices, Unmet Needs: Holistic Solution For India’s Farmers
The ongoing farmers' strike in India has ignited a crucial conversation about the state of the nation's agricultural landscape. Despite the undeniable passion driving the agitation, it primarily represents the concerns of a mere five per cent of the 120 million Indian farmers. These protests often stem from political motives and the influence of affluent agrarian communities, rather than the struggles faced by the majority.
To forge a sustainable future for Indian agriculture, it's time for a comprehensive shift. We must prioritise the needs of all farmers by critically examining and revising the flawed implementation of the Minimum Support Price (MSP) system and embrace a comprehensive strategy that supports the diversity of India's agricultural landscape. This necessitates a multifaceted approach that empowers all farmers and strengthens the entire agricultural ecosystem.
*Addressing the needs of the many. The Flawed Narrative of MSP
The central argument of the current agitation revolves around the MSP. While guaranteeing a fair price for crops seems noble, its current implementation presents inherent difficulties.
A Crux study across 15 states, and with 7,000 stakeholders, argues that MSP disproportionately benefits large-scale farmers who can navigate its complexities. Marginal farmers, who make up 95 per cent of the farming population, suffer from shrinking landholdings that limit their ability to modernise, diversify, or invest in technology. Over the past 30 years, average farmland ownership has halved every eight years. This fragmentation, coupled with inflation, has steadily eroded farmers' purchasing power, pushing them into a vicious debt cycle that threatens their very ability to continue farming.
*Addressing Inequity: Farm Subsidies and multiple challenges
The ongoing farmers' protests highlight the imperative to address systemic issues within India's agricultural subsidy framework. Despite a substantial annual budget of Rs 5 lakh crore allocated to farm subsidies, the unintended consequences disproportionately impact small and marginal farmers, amplifying their vulnerability to market fluctuations and economic hardships.
To rectify this, a comprehensive and multi-faceted strategy is indispensable for fostering a more equitable and sustainable farm subsidy regime. This necessitates the optimisation of subsidy distribution through targeted resource allocation based on landholding size and income levels and will ensure that support reaches those who are most in need. Furthermore, the implementation of robust mechanisms to prevent leakage and enhance transparency is crucial for efficient resource allocation.
An additional crucial step involves establishing a region-specific Farm Price Stabilisation Fund. This fund could play a pivotal role in providing essential support during market downturns by directly procuring crops from farmers at pre-determined minimum prices. Such a measure would mitigate distress sales and ensure fair compensation to farmers, particularly during periods of market volatility.
*Investing in Sustainable Farming Practices, Creating Alternatives
The government must recognise the multifaceted challenges and must create a resilient framework that promotes their prosperity while enhancing the overall stability of the agricultural sector.
Fostering long-term success in agriculture requires strategic investments in sustainable farming practices and the creation of viable alternatives. Beyond mere productivity increases, the emphasis should be on prioritising practices that enhance soil health management, such as crop rotation, ‘cover’ cropping, and organic farming. Similarly strengthening connections between farmers and markets is essential. This involves improving storage infrastructure, transportation, and market access. Additionally, promoting farmer-producer organisations can empower smallholders to negotiate better prices and collectively address challenges.
In a country grappling with water scarcity, the promotion of water-efficient technologies like drip irrigation is paramount. Advocating for crop diversification helps mitigate risks linked to volatile market prices, offering smallholders additional income streams, and fortifying the resilience of agricultural systems.
*A sixth of the GDP cannot feed 50 per cent of the population
Recognising that agriculture may not be feasible for every smallholder, the government should facilitate a transition to other sectors. Skill development can equip farmers with the expertise needed for employment. Microfinance initiatives provide access to affordable credit, enabling smallholders to invest in businesses or vocational training, creating new income opportunities.
Empowering Farmer Producer Organisations (FPOs) enhances negotiation power, collective resource access, and the exchange of knowledge is the way forward. Encouraging innovation and technology adoption through targeted research, including climate-resilient crop varieties and precision agriculture, is vital for small and marginal farmers. Investment in digital infrastructure providing market information, access to ecommerce platforms, enables informed decisions and direct connections with consumers and will enhance returns.
Simultaneously, addressing inadequate rural infrastructure is pivotal. This includes improving irrigation facilities, upgrading rural connectivity, and investing in storage facilities to minimise post-harvest losses, and cold chains for enhanced storage and transportation of perishable products. These strategic investments will empower farmers, increase their resilience, and pave the way for a more sustainable and profitable agricultural future.
Investing in small and marginal farmers extends beyond addressing individual struggles; it strengthens the economic foundation, bolsters societal well-being, and creates numerous rural jobs in India.
*Agri ecosystem needs an ‘Amul’ moment
The ongoing farmer protests underscore the urgent need to address the complexities surrounding the Indian agriculture sector. This moment presents a unique opportunity to learn from successful models, like the Amul cooperative, which empowered farmers and transformed the dairy industry.
Policymakers should design solutions that incorporate replicable strategies, like producer ownership, fair pricing, and efficient supply chains, to benefit farmers across diverse agricultural sectors. Crucially, achieving these goals demands political will and necessitates comprehensive, even radical reforms. The Prime Minister should leverage his growing political capital to bring about tangible differences and drive the necessary changes.
