Policy

1. STRATEGIC PLAN TO DOUBLE
THE FARMER INCOME
RAWE
PRESENTATION
Submitted by :
Buddhavilash
I.D No – 14041
B.Sc (Ag) Part 4th
Submitted to :
Pro. O.P Mishra
Dr. B. Jirli
DEPARTMENT OF EXTENSION EDUCATION
INSTITUTE OF AGRICULTURAL SCIENCES
BANARAS HINDU UNIVERSITY
VARANASI – 221005

2. INTRODUCTION
Prime Minister’s desire – farmers’ rally in
Bareilly, UP on 28th February 2016
On the very next day, the FM repeated in
his budget speech
Agriculture will require an annual growth
of 14.86% per year for the next 5-6 years
to double the income of farmers
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3. Doubling of Farmers’ Income
“I wish to double the income of farmers by 2022 when India will
celebrate 75 years of its Independence”
Prime Minister
while addressing farmers rally
at Bareilly (Feb 28, 2016)
Budget 2016-17
“We are grateful to our farmers for being the backbone of the country’s
food security. We need to think beyond food security and give back to
our farmers a sense of income security. Government will, therefore,
reorient its interventions in the farm and non-farm sectors to double
the income of the farmers by 2022.”
Finance Minister Budget Speech, February 29,2016.

4. PM’S SEVEN-POINT STRATEGY
1. Focus on irrigation with per drop-more crop;
2. Quality seed and soil health;
3. Investments in warehousing and cold chains;
4. Value addition through food processing;
5. Creation of a national farm market;
6. New revolutionary crop insurance scheme to
mitigate risks at affordable cost; and
7. Promotion of ancillary activities like poultry,
beekeeping, and fisheries.
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5. BACKDROP
 Past strategy
for development of the agriculture sector in India
 focused primarily on raising agricultural output
 improving food and nutrition security.
 did not explicitly recognise the need to raise farmers'
income and
 did not mention any direct measure to promote
farmers' welfare.
 Strategy involved
increase in productivity through better technology
and varieties increased use of quality seed,
fertiliser, irrigation and agro chemicals;
 subsidies on farm inputs;
 public investments in and for agriculture; and
 facilitating institutions.

6. Key Findings
45 per cent increase in per person food
production : Last 50 years – food production
multiplied by 3.7 times.
 made India food self-sufficient at
aggregate level
 also a net food exporting country.
Farmers' income remained low in relation to
income of those working in the non-farm
sector.

7. Impact of low level of farmers’ income
• Low level of farmers’ income and disparity between
income of a farmer and non-agriculture work.
• Agrarian distress and sharp increase in number of
farmers suicides (1995-2004) due to:
o Losses from farming
o Shocks in farm income
o Low farm income
• Government constituted “National Commission of
farmers”
• 5 reports & “Draft National Policy for farmers”.
• “Success in agricultural progress should be measured by the
growth of farmers incomes and not just by production figures”.

8. Sources of Growth in Farmers' Income
 10.4% annual growth rate required
 on-going and previously achieved rate of growth in farm income
needs acceleration.
 Major sources of growth:
 improvement in productivity,
 resource use efficiency or Total Factor Productivity, saving in cost
of production
 increase in cropping intensity,
 diversification towards high value crops,
The sources outside agriculture include:
 shifting cultivators from farm to non-farm occupations, and

9. Strategies for Improving
Farmers' Income
Stakeholder Consultation

10. Production Centric
Need to raise output through concerted efforts on
increasing productivity, TFP, input management,
resource conservation
Focus on zonal planning in bigger states like UP
Integrated farming systems important
 Like paddy-cum-fish culture in eastern India and NE
Investment and subsidies in few technologies like poly-
houses may help multiply the returns
Need for Risk Mitigation: insurance against crop and
income loss
 Pradhan Mantri Fasal Bima Yojana
 Climate Smart Agriculture
Role of ICAR and SAUs crucial

11. Post-harvest Management Centric
Need for suitable strategies for reducing post
harvest management to reduce crop losses
Required value addition and processing
States like MP established processing units in
the major producing clusters

12. Marketing Related
Essential to ensure whether the increased
production is converted to money?
 Need for integrated and value chain approach
e-NAM would prove to be game changer
 Market linkages and reforms essential
Price uncertainty needs to be given due priority
Estimation of regional, national and international
demand to avoid the glut situations preventing
the situation of price crash
Need for stable commodity trade policies

13. Non-farm and other Concerns
 Creating suitable infrastructure
 In case of irrigation, requirement of capital is huge
 Need for attracting private investment
 Agro-tourism can be a lucrative off-farm activity
 Can bring substantial income in NE and NWH
 to go for diversification of fruits and vegetables mainly because of the
price risk and uneconomic lot for marketing.
 Need for separate plans for small farmers
 in terms of bargaining power in various transactions in the input and
output market.

14. National Programmes
Pradhan Mantri Krishi Sinchai Yojana’ (PMKSY)
Pradhan Mantri Gram Sadak Yojana (PMGSY)
Electronic National Agriculture Market (e-NAM)
Pradhan Mantri Fasal Bima Yojana (PMFBY)
Paramparagat Krishi Vikas Yojana (PKVY). 1
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15. Status of Farmers’ Income
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16. No current estimates of farmers’ incomes. The latest
available survey from the (NSSO) is for 2012-13
The CAGR of farmers’ nominal incomes between 2002-
03 and 2012-13 was 11.8 % at an all-India level.
Haryana registered the highest growth (17.5%) and West
Bengal the lowest (6.7 %)
In 2012-13, an average Indian farmer’s monthly income
was Rs 6,426
 Punjab’s farmers had the highest income at Rs 18,059
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17. Per cent share of farmers’ income
4.3%
11.2%
45.8%
38.7%
2002-03
Net reciept from farming of
animals
Net reciept from Non-farm
Business
Net reciept from cultivation
Income from Wages
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11.9%
8.0%
47.9%
32.3%
2012-13

18. Is it wishful?/ Is it achievable?
NSSO’s Situation Survey 2002–03 and 2012–13 are the
only sources of data on farmers’ income.
Annual growth rate of real income for farmers falls to 3.5
per cent. With this growth rate farmers’ income will double
in 20 years.
Diversification can be a major game changer.
Policy measures aimed at increasing net income of
households from animal farming will be the key driver of
incomes in agricultural households.
There is a need for much greater effort and mission-
mode-action.
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19. Summing Up
States invest much more than the outlay by the Centre
on many development activities, like irrigation.
Reform related to Agriculture Marketing, Contract
Farming, Agro-forestry and land leasing: state subject
Concerted and well-coordinated effort by Centre and
all the States: Country can achieve the goal of
doubling farmers' income

20. Thank you