Only a radical policy shift can lift farmers from widespread distress
(Source – The Hindu, International Edition – Page No. – 13)
Topic: GS3 – Indian economy – Agriculture |
Context |
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Budget Cuts and Agrarian Distress
- The last Union Budget reduced food subsidy by ₹7,082 crore and fertilizer subsidy by ₹24,894 crore.
- Allocations for agriculture fell from 5.44% in 2019 to 3.15% in 2024, despite 1,00,474 farmer suicides between 2015 and 2022.
- India ranks 105th out of 127 countries on the Global Hunger Index 2024, highlighting severe agrarian distress.
Controversial Farm Policy and Protests
- The draft National Policy Framework on Agricultural Marketing (NPFAM) reintroduces pro-corporate provisions from the repealed farm laws.
- Farmers nationwide are protesting against NPFAM, demanding its withdrawal.
Key Demands for Farmers
- Statutory Minimum Support Price (MSP):
- Farmers demand MSP at C2+50% (1.5 times production cost), as recommended by the Swaminathan Commission.
- Non-implementation of MSP has led to indebtedness, suicides, and distressed land sales.
- Reduction in Production Costs:
- Rising costs of fertilizers, seeds, diesel, and electricity must be reduced.
- The government should regulate corporate input producers and support public sector firms.
- Comprehensive Loan Waiver:
- A one-time loan waiver for farmers and agricultural workers is essential to prevent suicides.
- The government has waived ₹14.46 lakh crore of corporate loans in the last decade.
- Crop Insurance and Climate Change:
- A new, farmer-friendly crop insurance scheme is needed to replace the flawed PMFBY.
- Climate change-induced droughts, floods, and unseasonal rains require robust insurance coverage.
- Investment in Irrigation and Power:
- Public investment in irrigation and power must increase to reduce costs and ensure steady supply.
- Completing stalled irrigation projects can boost yields and employment.
- Expansion of MGNREGA:
- MGNREGA work-days should increase to 200, with wages raised to ₹600.
- The scheme is a lifeline for rural workers and boosts purchasing power.
Funding Solutions
- Impose wealth and inheritance taxes on billionaires, whose numbers doubled from 109 in 2014 to 200 in 2025.
- Restore corporate tax rates to generate ₹1.45 lakh crore annually.
- Increase direct taxes on the rich while reducing indirect taxes and curbing tax evasion.
Conclusion
- Addressing agrarian distress requires MSP implementation, reduced production costs, loan waivers, better insurance, and increased public investment.
- Funding can come from taxing the wealthy and restoring corporate taxes.
PYQ:
Q.1 What are the main bottlenecks in the upstream and downstream process of marketing of agricultural products in India? (UPSC CSE (M) GS-3 2022) Q.2 What are the main constraints in transport and marketing of agricultural produce in India? (UPSC CSE (M) GS-3 2020) |
Practice Question: Analyze the causes of India’s agrarian distress and suggest measures to address the challenges faced by farmers, focusing on MSP, loan waivers, and public investment. (250 Words /15 marks) |
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