A Safety Net for Farmers

Context: Safety net for farmers in the form of subsidies must continue.

Issues raised by farmers in the reforms

• No assurance of Minimum Support Price (MSP): Without the government support, a large section of Indian peasant would be more vulnerable:
  • According to the 10th Agriculture Census 2015–2016 in India, “smallholder and marginal farmers” (having <2 hectares of land) account for 2% of all cultivators.
  • Subsidies are prevalent worldwide: For e.g. in the US, the agriculture sector is expected to receive $46 billion in federal subsidies this year. (accounting for 40% of farm incomes).
  • Lack of jobs in other sectors:
    • The secondary sector’s total employment has been stagnant at around 26% (as against 41% for agriculture).
    • The tertiary sector has not been able to create enough jobs either.
    • Reverse migration during COVID-19 showcases their precarious conditions in cities.
  • Widening rural-urban gap: in term of per capita resources.
• The process of the corporatisation of agriculture: Farmers believe that in the absence of regulation, agribusiness firms will be able to dictate the market conditions
  • E.g. They fear the distraction in the telecom sector by Jio may replicate in the Agriculture sector
  • Failed past experience: Management of the crop insurance scheme against natural disasters, introduced in 2017 was given to Reliance, but the farmers did not profit from it.

Way Forward: A safety net for farmers

• Public investment is preferable: increase public investment in agriculture in terms of infrastructure and in the form of income support schemes like the Rythu Bandhu in Telangana or the Krushak Assistance for Livelihood and Income Augmentation in Odisha.
• Draw inspiration from Andhra Pradesh’s community-managed farming model: which promotes agro-ecological principles with the use of locally produced, ecologically sustainable inputs, focusing on soil health, instead of depending on chemical fertilisers.