Doubling Farm Income: Important Pillars: (2) REDUCE COST OF PRODUCTION: (3) MARKET REFORMS

 

(2) REDUCING COST OF PRODUCTION:

As for reducing cost of cultivation, the two important initiatives of the government are (i) the introduction of soil health card, and (ii) use of micro irrigation. The soil health card saves application of chemical fertilisers thus reduce cot of cultivation and raise productivity if farmers follow the advice of scientists, similarly use of micro irrigation techniques saves water. The newly introduced neem coated urea reduces the amount of urea in the crops. Thus work is under progress on this important pillar also.

(3) MARKETING:

Creation of National Agriculture Market Scheme (e-NAM) and integration of mandies  with e-NAM, Development and up gradation of  22000 rural markets haats,  is important in providing best possible price to  farmers. Already 585 markets are on board. A Committee of Chief Ministers of states to transform agricultural credit has also been set up. The amount of agriculture credit which was 8.2 lakh crore in the year 2014-15 has gone up to 11.5 lakh crore in the year 2018-19. The government has adopted the recommendations of the Swaminathan Commission (Principle of 50% margin of profit for all crops) for determination of MSP for addressing yield risks and providing reasonable return to farmers. No doubt there are economic arguments against the very concept of MSP there are issues of imperfect markets and risk of survival faced by poor farmers. In medium terms till workable alternatives are put in place, it is reasonably good for farmers.

Government has also tried to address the issue of price risks through creation of buffer stock of pulses, passing of Contract Farming Act, Agricultural Land Leasing Act, and covering nearly 50% of the population under Pradhan Mantri Fasal Bima Yojana (PMFBY) by 2019-20.  In addition Direct Transfer of Rs. 6000/- per year to farmers is another incentive which guarantees some monies going in the pocket of farmers. PM Maan Dhan Pension Scheme has also been introduced⁴.

The emphasis is on addressing the problems of risks adversely affecting farmers’ income and to work on more comprehensive, integrated and holistic approach towards fulfilling the target of doubling the farmers’ income within the time frame. The efforts are certainly based on good knowledge, extensive research and use of technology yet the desired outcomes could not be achieved.

to be continued...