As the Govt embarks on its third tenure, winning back the trust of the farming community will require genuine and substantial reforms that prioritise farmers’ welfare
Agriculture has always been a cornerstone of India’s economy and social structure. Despite its critical role, the sector has witnessed a turbulent relationship with the central Government in recent years. The Union Government’s ambitious promises and subsequent policies aimed at revolutionizing agriculture have often been met with skepticism and anger from the farming community. This discontent was vividly reflected in the recent general election results in States like Rajasthan, Haryana, Punjab and Uttar Pradesh. The deep-seated issues that plagued the sector, including the contentious farming laws and the unmet demand for legal guarantee to Minimum Support Price (MSP), continues to fuel farmers’ agony and anger.
Around 65 per cent of India’s population lives in rural areas, with 47 per cent reliant on agriculture. Despite India’s rapid economic growth, agricultural income has stagnated, averaging about Rs 10,000 rupees monthly in 2019, with half of the families in debt and lacking traditional financing. Public spending on farming has declined over the past decade and needed reforms have not been implemented. Consequently, the agriculture sector, which employs nearly half of India’s workforce, contributes less than a fifth to the GDP. Modi’s promise to double farmers’ income by 2022 remains unfulfilled.
The Modi Government’s first tenure starting in 2014 saw a significant focus on agriculture, with promises to double farmers’ income. However, these promises were overshadowed by controversies and policies perceived as anti-farmer. Agony and anger of farmers reached its tipping point in 2020-21 and nationwide protests begun against controversial farm laws aimed at easing rules for crop sales, pricing and storage. The protests ended after Modi promised to repeal the laws. Farmers demanded legally guaranteed MSP for 23 crops, set at 50 per cent above production costs, as recommended by scientist MS Swaminathan. While the Government sets MSPs for 22 crops, it primarily buys only wheat and rice for welfare programs and private buyers aren’t legally required to pay MSP. The controversial farming laws were aimed at liberalizing the agricultural sector but were seen by many farmers as a threat to their livelihoods. The prolonged protests that followed led to the eventual withdrawal of these laws, yet the underlying discontent persisted. The recent Lok Sabha elections reflected this ongoing anger, with significant losses for the ruling party in agricultural strongholds. What future awaits Indian Agriculture Ministers? Newly appointed Agriculture Minister Shivraj Singh Chouhan will have to bring in all his expertise and experience of transforming Madhya Pradesh agricultural landscape at national level to address the challenges.
He must curious and cautious about the fate of his predecessors. Initiator of the Soil Health Card scheme, under then Union Agriculture Minister Radha Mohan Singh was never inducted in the Cabinet again. The scheme, intended to boost soil productivity, ended up mired in inefficacy and controversy. The subsequent minister, including Narendra Singh Tomar shifted to Madhya Pradesh State politics and now he is speaker in Assembly. Recently, Arjun Munda, faced electoral defeat. Defeat of Junior Ministers Kailash Choudhary and Sanjeev Balyan also indicate farmers’ dissatisfaction with the Government’s agricultural policies. A critical demand from the farming community has been the legal guarantee of MSP. The Government’s failure to address this demand has been a significant source of anger. Farmers argue that a legally guaranteed MSP would provide a safety net against market fluctuations and exploitation by middlemen. Despite multiple assurances, the Modi administration has not enacted legislation to this effect, fueling the perception that their interests are being ignored.
Experts argue that legally guaranteeing MSP could create a fiscal burden and potential inflationary effects.
However, opinions differ on this impact. Some believe that containing cultivation costs could mitigate inflation concerns. The cost of MSP implementation for all crops is also uncertain, varying with market prices, Government procurement quantities and duration. Estimates range widely, from CRISIL Market Intelligence & Analytics’ 210 billion rupees to other analysts’ 10 trillion rupees annually.
A more effective approach might be direct income support linked to farmland investment. Additionally, revamping the current procurement process. Farmers could also benefit from a price stabilization fund to cover the difference when market prices fall below MSP levels. This combination of strategies could better support farmers without causing significant fiscal or inflationary issues. In response to the ongoing challenges in the agricultural sector, the Modi 3.0 Government is poised to introduce several initiatives aimed at placating the agrarian community.
Among these, the Krishi Sakhi Convergence Program (KSCP) stands out as a significant and ambitious effort. Modi 3.0 Government’s focus on agriculture, marked by programs like the KSCP, reflects a recognition of the critical role farming plays in India.
(The author is a senior journalist; vews expressed are personal)
