New Schemes for the Agriculture Sector

The Cabinet has approved seven major schemes aimed at enhancing farmers’ lives and livelihoods, with a total outlay of ₹14,235.30 crore. This initiative addresses several pressing issues faced by the agricultural sector.

Current Status of Farmers’ Lives and Livelihoods

• Demographics: As of 2021, 65% of India's population resides in rural areas, with 47% dependent on agriculture for their livelihoods.
• Income Levels: The average monthly income of Indian farmers was ₹10,218 in 2018-19, highlighting the economic challenges they face.

Issues and Constraints in Increasing Farmers' Livelihoods

• Technological Issues:
• Outdated Technology: Many farmers utilize outdated and inappropriate technology due to limited access to credit and low awareness. For example, only 47% of agricultural activities are mechanized in India, compared to 60% in China and 75% in Brazil.
• Research and Development: Agricultural research is hindered by inadequate resources, regulatory challenges, and issues with intellectual property rights (IPR). India allocates only 0.4% of its agricultural GDP to R&D, which is significantly lower than that of other countries like China, Brazil, and Israel.
• Access to Agricultural Credit:
• Many farmers, particularly tenant farmers, struggle to access institutional credit, which limits their ability to invest in better farming practices and technology.
• Natural Resource Management:
• Challenges include declining soil organic matter, excessive fertilizer use, water scarcity, and a substantial reliance on rainfed agriculture, which suffers from low water use efficiency.
• Supply Chain Issues:
• Inadequate Infrastructure: Approximately 30-35% of fruits and vegetables are lost throughout the supply chain due to inefficiencies in harvesting, storage, grading, transport, packaging, and distribution.
• Barriers to Exports: Non-tariff trade barriers, such as sanitary and phytosanitary measures and stringent import guidelines for agricultural and processed food products, hamper India’s export potential.
• Low Productivity:
• According to FAO reports, India’s rice yield is around 2.85 t/ha, significantly lower than China (4.7 t/ha) and Brazil (3.6 t/ha). Contributing factors include fragmented landholdings, inadequate irrigation facilities, soil degradation, and limited access to quality inputs.

Additional Issues Impacting Farmers

• Erratic Climate:
• The Government of India's economic survey (2018) estimated annual losses of $9-10 billion due to climate change impacts, affecting agricultural productivity and stability.
• Low Price Realization:
• There is a significant gap between farm harvest prices (FHP) and retail prices. In good production years, prices can fall below minimum support prices, causing agrarian distress among farmers.

How New Schemes Will Improve Farmers' Lives and Livelihoods

Leveraging Technology

• Digital Agriculture Mission: Aims to reduce yield loss through precision farming, helping identify suitable land for cultivation and optimizing land use.
• Weather Forecasting and Climate Modeling: Enhances farmers’ ability to mitigate the impacts of extreme weather events, promoting resilience.

Crop Science for Food and Nutritional Security

• High-Yielding and Climate-Resilient Varieties: Development of disease-resistant crop varieties using traditional and modern biotechnological methods (e.g., CRISPR).
• Biofortification: Addresses micronutrient deficiencies in populations, contributing to better health outcomes.

Agricultural Education and Outreach

• Strengthening Agricultural Education: Enhances understanding of rural development theories and improves policy formulation for infrastructure, credit, and market access.
• Krishi Vigyan Kendras (KVKs): Improve access to quality technological products and facilitate extension activities to support farmers.

Focus on Key Sub-Sectors

• Livestock and Horticulture: Schemes aim to enhance productivity in these high-yield sectors sustainably, focusing on areas like dairy production and animal genetics.

Recommendations from the Ashok Dalwai Committee

• Transition to Farm Managers:
• Encourage farm owners to transition from being cultivators to managers by outsourcing farm operations, improving resource efficiency.
• Redefining Agriculture's Mandate:
• Expand agriculture’s role to include generating raw materials for various industries (chemicals, construction, energy).
• Promoting Secondary Agriculture:
• Encourage value-added activities that utilize farm-generated resources beyond primary yields.
• Fork to Farm Approach:
• Maximize monetization by enhancing agro-logistics, processing, and marketing systems.
• Increasing Variety Replacement Ratio (VRR):
• Phase out old seed varieties and replace them with hybrids and improved seeds across the country’s diverse agro-climatic zones.
• Water Management:
• Promote efficient water use through micro-irrigation techniques, groundwater recharge, and climate-based cropping systems.
• Sector Diversification:
• Shift focus from major cereals to a broader range of crops, including:
• Nutri-cereals, fruits, vegetables, flowers, pulses, and a mix of animal-based proteins (eggs, milk, meat, fish).

Conclusion

The new schemes and structural measures are designed to address the multifaceted challenges facing farmers in India, enhancing agricultural productivity, improving livelihoods, and fostering sustainable practices. By leveraging technology, improving education, and promoting diversification, these initiatives aim to create a more resilient and prosperous agricultural sector.