A greater focus on farmer welfare
There is an emphasis on increasing farm productivity, but this might not always align with greater profitability
While inaugurating the Krishi Mela at the Indian Agricultural
Research Institute in March, Prime Minister Narendra Modi appealed for a
“three-pillared” approach to farming, which included crop farming, agro
forestry—that is, planting timber trees along farm peripheries—and
animal husbandry.
This is an important enunciation of how Indian agriculture works as
an integrated system in which growing crops and rearing livestock
coexist.
While over 57% of India’s population depends on agriculture for
livelihood, close to 80% of India’s milk, for example, comes from such
integrated, “mixed” farming systems. Most farmers in India diversify
into different subsectors in an attempt to boost their incomes, and
often to mitigate risk.
Indian agriculture has come a long way, with the country among the
world’s top seven food exporters today. However, this positive headline
obscures continuing challenges with farm productivity and incomes,
particularly for small and marginal farmers. While agriculture has
progressed significantly, most Indian farmers have not, a key issue
being the lack of profitability in farming.
Farmers’ aim is to generate income and make profits to meet living
expenses, cover social welfare needs and build assets for their
families. Hence, for a farmer, what is significant is not just increased
production but rather how much of the production translates into
tangible profit.
Most agencies working for farmers focus on increasing farm
productivity, but their efforts might not always be aligned with
converting increased yield into greater profitability. This fundamental
divergence in practical priorities needs to be plugged in order to
bridge the gap between what research is keen to deliver and what the
farmers are likely to adopt.
The recent rechristening of the ministry of agriculture as the
ministry of agriculture and farmers welfare can be realized when there
is greater rigour and focus on farmer welfare by optimizing and helping
farmers realize the true value of what they produce. The three-pillars
message needs better adoption by public sector research, extension and
development agencies—which often work in mutually exclusive silos of
crops and livestock and typically reach out to farmers through
independent, often uncoordinated channels.
This type of compartmentalization can probably end if agricultural
universities also adopt a “farming systems” lens that is more aligned
with the reality of farming households. The collective impact of India’s
large-scale public sector infrastructure in agriculture is reflected in
significant improvements in crop and livestock productivity, which is
necessary but not sufficient to address the challenges faced by
smallholder farmers. What is further required of such platforms and
missions is a greater emphasis on an integrated approach and a sustained
focus on market development.
The elements that can significantly enable agricultural development
are technologies (including appropriate innovations in market systems);
extension and dissemination of technologies to farmers; and access to
financial services such as loans, savings, remittance and insurance—for
achieving higher agricultural productivity, livelihood diversification
and improved food security.
Successful implementation of the three-pillared approach will require
integration at all levels. We need to balance the existing farming
portfolio by increasing emphasis on priority commodities such as
livestock and locally relevant legumes and vegetables, while
simultaneously exploring the impact potential of new commodities like
potatoes. Goods and services reach farmers through both public and
private channels. We should leverage the strengths of both
sectors—involving the existing community, government and for-profit
companies—and streamline the delivery process.
From a financing systems perspective, the newly licensed payments
banks can be used to test various digital services such as insurance,
direct benefit transfer and savings for smallholders. Measures can
include providing funding for proof-of-concept, for-profit goods and
services and supporting digitization of financial transactions for key
institutions to reduce transaction costs and systems’ leakage.
Providing this initiative with the needed visibility will require a
coalition of champions to voice key issues. This can be done by
convening a policy advisory group and by partnering with domestic
institutions to study the impact of poor land titling and tenancy laws
and its impact on smallholders and landless farmers, particularly women.
Our approach must take into account the importance of policy in
driving change. For effective policy, we must gather data and analyse
evidence on the impact of existing policies, and accordingly modify or
revise policies to address constraints.
The latest Union budget offers hope for all three pillars referenced by the prime minister—the total outlay of
Rs.35,958
crore is being distributed across important parameters including
irrigation, seeds, crop production and livestock. Combined with robust
reforms in market development, this could very well transform the lot of
Indian farmers by making farming a viable source of livelihood. The
ambitious plan of doubling farmers’ incomes in the next five years is
not impossible, but will become a reality only when a thrust to markets
and farmer incomes will be added to the focus on production. A key task
will be to have public sector institutions deliver a “package” of
services to farmers, not just for better agricultural output, but for
the overall economic well-being of the farming community.
