Doubling Farmers' Income the Birth of an Idea

Indian Prime Minister, in his various election rallies announced his Government’s desire, to double farmer’s income in five years, as an important priority. Prof. Chander Sabharwal attempts to throw light on some fundamental issues that surround this goal.

Indian farmers are a diversified lot, a lot more than the immense diversity of our vast country. There are rich farmers, with varied interests, and large land holdings 50 acres +, medium level farmers with 10-15 acres land holdings, small farmers between 5 – 10 acres of land, and marginal farmers between 1-5 acres of holdings – suitable for cultivation. These farmer households, own animals, such as cattle, sheep & goats, buffaloes; some own poultry farms; still others run small dairy units; their family may be running a trading or commission agency business; surely most medium to large farmers will own tractors, and other farm machineries; others will rent the machinery to others. So, income to farmers can come from agriculture (Farm income 45 percent), or from other sources, (Non-Farm income 55 percent).

The Backdrop: The Problem Large number of Indian farmers are principally involved in cultivation of paddy, cotton, sugarcane, fruits and vegetables, pulses, etc. during Kharif and with wheat, potatoes, onions, fruits and vegetables,oilseeds, etc. during Rabi seasons. The cash crops are sold in agricultural markets/mandis, and to government agencies on minimum reserve prices. Middlemen buy crop produce, store in cold storages, or sell to buyers, and are the linkage between wholesalers, and retailers in urban, semi urban and rural markets. The prices for agricultural produce, are fixed based on quality of crop and the quantity available for sale. Commission agents (Aartiyas), barter inputs with farmers against crop production, to set off debts and interest. Banks and Agri-input companies may also do this on occasions.