Farm Policies For India
Farm Policies For India
Farm Policies For India
2) Structural Issues
The one-size-fits-all policy created for the farm sector and programmes meant to double farmer
incomes may not show better results.
No region specific norms in Pradhan Mantri Fasal Bima Yojana force it to distribute benefits in
uneven manner.
States interest in E-NAM is lacking and states like Haryana log in all FCI purchases as E-NAM
transactions.
Whenever there is inflation, centre imports agricultural commodities which lead to fall in prices (Eg:
Last year Pulses import). But when prices fall, the Central government remains apathetic.
No consultation of state governments in negotiating agriculture related trade treaties despite the
fact that agriculture comes under state list.
To meet their priority-sector lending targets, banks have indiscriminately given loans of over Rs one
lakh crore to farmers based on their asset value rather than economic viability.
Sometimes the loans given are more than the actual value of the crops sold each year by individual
farmers.
Loans are also given against the pledge of gold and classified as agricultural loans.
No floor price for all agricultural commodities.
Extra burden on state governments for funding to certain central schemes.
3) Way Forward
Allowing each state to design its own crop insurance scheme and receiving the Central government
share of the premium would yield desired results.
Rather than force E-NAM on states, incentivising each state to have their own electronic platform
which meets the basic criteria of interoperability with other states
Central government should negotiate international trade treaties on agriculture (like RCEP) with the
consent of state governments.
Centre must follow a scientific methodology for importing agricultural commodities so as to
prevent fall in prices.
Our agriculture policy needs to focus on improving productivity
Access to formal credit, rationalizing crop rotation and inputs, and weathering seasonal risks.
Synergy between ministry of food processing with the ministry of agriculture and farmer welfare
Big data analytics will usher in improved governance and transparency.
Centre should set a floor price for all the farm produce. Centre should compensate the farmers for
the shortfall between the market price and floor price through Price Deficiency Payment.
To prepare Indian farmers for global assimilation, funding for programmes like Rashtriya Krishi
Vikas Yojna and the sub-mission on agriculture mechanisation should be doubled.