Economic survey-2018 notes that agriculture accounts for 16% of GDP and 49% of the employment in the country. This highlights the low income share of farmers and the consequent farm distress in India. Most of these farmers are small and marginal with less than 2 hectares of land.
Mechanisms and focus to achieve the goal of doubling farm income:
1. Increase in production: Irrigation especially rained areas under PMKSY to promote watershed management, micro irrigation.
2. Diversification to high valued crops: More income per hectare can be achieved by adopting vegetables and fruits.
3. Lowering cost of production: small holdings increase the cost of inputs. Promoting corporate farming and farmer producer organizations for better bargaining power can lower costs.
4. Higher or stable prices: building cold storage and warehouse infrastructure for lowering the wastage and demand supply gaps.
5. Reforming institutions and policies: APMC acts must be amended and E-NAM be implemented in true spirit for better price realization by the farmer.
6. Non-farm occupations: Agro-industrialization, livestock, dairy production can help in augmenting farm incomes.
7. Crop-insurance: While PMSFBY is catering for crop insurance against crop failures, the focus on coverage needs to be increased.
China's initiative and learning for India:
China has focused on creating an agriculture model where technology along with ease of availability of inputs, along with a shift of population from agriculture to non-agricultural occupations is being focused on.
CONCLUSION:-
Agriculture being a state subject, states are better placed to adopt approach that suits them. Hence, their role is crucial in improving farm income and agriculture as a whole.
