OPINION I Economic Times

For millennia, agriculture has not just been an occupation but a cornerstone of life in India, where farmers hold an honoured status as "Annadata," or providers of food. This deep cultural respect underscores their vital role in sustaining the nation's population.

After assuming charge for the third time, Prime Minister signed the first file authorising the release of the 17th installment of PM-Kisan Samman Nidhi which aimed to supplement the financial needs of small and marginal farmers for the purchase of seeds, fertilizers, etc., and to meet other farming expenses. Agriculture policies like PM-Kisan would be more effective if directed at “full-time/regular” Annadata, whose quantum of income support can be enhanced to encourage them to remain in or expand their agriculture business.

According to the ICE 360 survey conducted by PRICE, detailed information on household income sources was gathered by questioning the activity status and income sources of all earning members of households. The survey found that approximately 14 crores of Indian households currently earn some income from agriculture and allied activities. Among these households, 75% (10 crores) own cultivable agricultural land, making them eligible for benefits under schemes like PM-Kisan, provided they meet other criteria. However, based on the income data collected, it is estimated that there are only 6.84 crore households that are truly Annadata or fully dependent on farming for their livelihood.

Approximately 18% (1.25 crore) of Annadata households are tenant farmers, meaning they are landless and often do not own the land they cultivate. As a result, they face exclusion from benefits under schemes like PM-Kisan, which require land ownership as a criterion for eligibility. Predominantly concentrated in states like Uttar Pradesh (22%), Maharashtra (18%), Madhya Pradesh (18%), Karnataka (9%), Gujarat (8%), and West Bengal (6%), these farmers encounter significant challenges, despite their critical contribution to agricultural production. These tenant farmers have a negative surplus income and are in a state of financial distress with a high expenditure-to-income (107%) and debt-to-income ratio (15%).

Addressing these disparities is crucial to fortifying India's agricultural support framework. The exclusion of tenant farmers underscores a gap in current policies, necessitating complementary measures to ensure comprehensive support for all agricultural dependents.

While schemes like PM-Kisan provide essential income support, there is a clear need to refine eligibility criteria to target those who depend on farming as their primary livelihood. The current inclusion of wealthy landowners and non-agricultural income earners under PM-Kisan detracts from its intended impact on marginalised farmers.

For a large proportion of farmer households particularly small, marginal and tenant farmers, cultivation is no longer a viable form of earning a sustainable livelihood. Our surveys reveal that nearly 54% or 3.7 crore Annadata households do not have sufficient resources to undertake farming activities. Among the major “constraints” for land cultivation, irrigation emerges as the top-most challenge for 53% of Annadata households highlighting the need for sustainable water management practices and investments in irrigation infrastructure. Capital (17%) and labour shortages (13%) further exacerbate productivity challenges, limiting the capacity of farmers to adopt modern agricultural practices and technologies. Fertilizers and seeds figure lower down in terms of the major constraints to cultivation. Addressing these constraints requires targeted interventions, including access to affordable credit, skill development programs, and technological advancements tailored to small and marginal farmers.

A more sustainable solution lies in reimagining agriculture beyond traditional farming practices. While cultivation remains fundamental, there is immense scope for value-addition and employment outside the farm. Activities such as aggregation, processing, and retailing of agricultural produce can create new avenues for income generation and economic growth.

Furthermore, liberalising output markets and promoting an active land lease market can unlock the potential of underutilised agricultural land. It encourages efficient land use practices while providing opportunities for landless farmers and tenant cultivators to access productive agricultural resources.

Moving forward, India's agricultural policy must prioritise sustainable agricultural practices and inclusive growth. Policies should aim not only to increase farm incomes but also to promote environmental stewardship and resilience to climate change. Investments in research and development, coupled with incentives for eco-friendly farming practices, can ensure the long-term sustainability of India's agricultural sector.

Additionally, enhancing market linkages and improving rural infrastructure are essential for reducing post-harvest losses and ensuring fair prices for farmers' produce. Strengthening farmer producer organizations (FPOs) and promoting cooperative farming models can empower farmers, enabling them to collectively negotiate better prices and access to inputs.

By addressing systemic inequities, leveraging technology, and fostering inclusive growth, India can unlock the full potential of its agricultural sector. This approach not only ensures food security and rural prosperity but also contributes to sustainable development goals, paving the way for a prosperous and Viksit Bharat (developed India).

Agriculture remains central to India's socio-economic fabric, and concerted efforts are essential to transform challenges into opportunities, ensuring a sustainable and prosperous future for all stakeholders involved in this vital sector.