AGRICULTURAL DISTRESS IN INDIA

Farmers are plagued by several issues. These directly or indirectly affect the farmer’s life.
From procurement of inputs to marketing and post-harvest activities, farmers face a lot of
challenges. However, the problems faced by farmers go often unnoticed.
India is one of the biggest growing economies in the world. Agriculture is the primary
occupation of nearly half the population of the country. Over the past few decades, the
manufacturing and services sectors have increasingly contributed to the growth of the
economy, while the agriculture sector’s contribution has decreased. The unprecedented
agrarian crisis in India has now been affecting farmers across the country for nearly a decade.
What are the Reasons Behind Agricultural Distress?

i. Low productivity: India is still fighting the problem of low productivity. Its output
per hectare is much less than that of other countries.
India is addressing the challenge of low agricultural productivity among farmers
through a multi-faceted approach. This includes promoting technology adoption such
as high-yielding crop varieties and mechanization, improving access to credit and
extension services, investing in rural infrastructure, providing subsidies and
incentives, encouraging crop diversification, advancing research and development in
agriculture, implementing market reforms, introducing insurance schemes, and
facilitating skill development.
Pradhan Mantri Fasal Bima Yojana (PMFBY): PMFBY was introduced to provide
better insurance coverage for agricultural crops and thereby mitigate risk.

ii. Disguised unemployment: Disguised unemployment is rampant in the agricultural

sector, even today, Because of joint family holdings, the number of persons engaged
on a piece of land is much more than what is actually needed.
India is tackling disguised unemployment among farmers through various measures.
One approach involves promoting diversification into non-farm activities by
providing skill development and entrepreneurship training. Additionally, initiatives
focusing on rural infrastructure development, such as rural electrification and
connectivity, aim to create off-farm employment opportunities. Furthermore,
programs encouraging agro-processing industries and value addition to agricultural
produce help absorb surplus labour from the agricultural sector. By diversifying rural
livelihood options and creating employment opportunities beyond farming, India
aims to reduce disguised unemployment among farmers and improve overall rural
prosperity.

iii. Subsistence farming: Farming in India is subsistence based. Farmers still grow crops
to meet the needs of their family and not to earn profits.

iv. Traditional methods of farming: Most farmers still use the age-old traditional
methods of farming. Modern inputs like tractors, fertilisers, insecticides, pesticides
are not used by farmers due to lack of funds and information.
 One key approach involves promoting the adoption of modern agricultural techniques
and technologies, such as precision farming, drip irrigation, and organic farming
methods. Additionally, government schemes provide incentives and support for
farmers to transition towards sustainable and diversified cropping patterns, reducing
reliance on traditional methods. Agricultural extension services play a crucial role in
educating farmers about modern practices and facilitating their adoption. By
encouraging the shift towards more efficient and sustainable farming practices, India
aims to enhance productivity, improve agricultural resilience, and ensure long-term
food security.

v. Small holdings: This is a characteristic feature of Indian agriculture. This leads to low
productivity and compounds the problem of subsistence farming. Also, such holdings
are not conducive for use of modern technology.

vi. Lack of organised marketing system: Indian agriculture faces a lack of an organised
marketing system. A large number of farmers still continue to sell their produce in the
local markets at low prices.
The Government launched National Agriculture Market (e-NAM) scheme on 14.04.
2017 to enhance transparency in transactions, price discovery and farmers' reach to
larger number of markets to sell their produce to buyers of their choice at their
convenience.

vii. The absence of direct measures to promote farmers’ welfare is also one of the main
reasons for agricultural distress.

viii. Declining Average Size of Farm Holdings: Increasing demographic pressure,

disguised employment in agriculture and conversion of agricultural land for
alternative uses, have drastically reduced the average land holding.In light of this
issue, the promotion of contract farming and land leasing emerges as a potential
solution warranting critical evaluation. Proponents argue that contract farming can
offer small-scale farmers access to technology, capital, and markets, enhancing
productivity and profitability.

ix. Dependence on Rainfall and Climate: Indian agriculture is heavily dependent on

monsoon and ever-increasing global temperature has made agriculture more prone to
extreme weather events. Pradhan Mantri Krishi Sinchai Yojana (PMKSY): PMKSY is
a central government scheme aimed at expanding irrigation coverage and improving
water use efficiency in agriculture. The scheme focuses on four key components,
namely, water sources, distribution network, farm-level applications, and extension
activities.

x. Collapsing Farm Prices: Low global prices have affected exports and the cheaper
imports have hurt domestic prices in the country.

xi. Lack of easy credit to agriculture and dependence on money lenders.Joint Liability
Groups (JLGs) have been promoted by banks. Pradhan Mantri Kisan Samman Nidhi
 (PM-KISAN) scheme has been implemented to provide an assured income support to
all farmers, irrespective of the size of their land holdings subject to the exclusion
factor.

xii. Lack of Mechanisation: Introduction of latest technology has been limited due to
various reasons like accessibility for credit and low awareness
RURAL UNEMPLOYMENT IN INDIA
The government has implemented schemes to generate employment such as wage-based
employment and the promotion of self-employment. In order to counter the rising
unemployment scenario in the country which spiraled during the pandemic, the government
undertook various initiatives to generate employment and reduce unemployment in the
country.
Various Government Schemes for Unemployment in India

Pradhan Mantri Mudra Yojana (PMMY)

It was undertaken by the government to encourage self-employment. Under this scheme

collateral-free loans up to Rs. 10 lakh, are provided to small/micro business enterprises and to
individuals to enable them to set up or expand their business activities.

Pradhan Mantri Rojgar Protsahan Yojana

It was initiated in 2016-17 by the Ministry of Labor and Employment. Here government pays
the entire employer’s contribution (12% or as admissible) towards the EPS and EPF for all
sectors to all eligible new employees for the next 3 years from the date of registration of the
new employee.

Skill India Mission

 It is implemented by the Ministry of Skill Development and Entrepreneurship with a

focus to provide skilling to one crore people under Short Term Training (STT),
Recognition of Prior Learning (RPL), and Special Project (SP) across the country for
four years with an outlay of Rs. 12,000 crore.
 Under the scheme, a short-duration skill development training program is being
imparted to all prospective candidates including candidates belonging to BPL in the
country.

Pradhan Mantri Garib Kalyan Yojana (PMGKY)

Here the government of India contributes both 12% of the employer’s share and 12%
employee’s share under the Employees Provident Fund (EPF), totaling 24% of the wage for
the wage month from March to August 2020 for organizations having up to 100 employees
with 90% of such employees earning less than Rs. 15000/-.

PM SVANidhi

 This scheme was initiated by the Ministry of Housing and Urban Affairs.
 It focuses to provide affordable working capital loans to street vendors to resume their
livelihoods that were impacted during the Covid-19 lockdown.
 The vendors can avail of a working capital loan of up to Rs. 10,000, which is
repayable in monthly installments in the tenure of one year.

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

  It was initiated in the 10th five-year plan in 2005 and works under the Ministry of
Rural Development.
 It is a centrally sponsored scheme with the pattern 90:10.
 It provides a legal guarantee of at least 100 days of unskilled manual work in rural
areas.
 Any member greater than 18 years of age of a rural household, willing to do unskilled
manual work can apply to the local Gram Panchayat (which will issue a Job Card).

National Career Service

 It was envisioned for transforming the National Employment Service to provide

various employment-related services such as job matching, career counseling,
vocational guidance, information on skill development courses, apprenticeships,
internships, etc through an online portal.
 National Career Service (NCS) focuses on a one-stop solution to provide various
services related to employment and career-related services to the citizens of India.
 This program is implemented by the Directorate General of Employment, Ministry
of Labour & Employment.

National Rural Livelihood Mission (NRLM)

 The scheme named Deendayal Antyodaya Yojana- NRLM ( national rural livelihood
mission) was launched by the Ministry of rural development, govt.
 In India in June 2011 a restructured form of the Swarna Jayanti gram Saroja Yojna
(SGSY).
 This scheme is fully focused on promoting self-employment and the organization of
the people who live in rural areas.
 In this program, the main idea is to organize the poor into a self-help group.
 This scheme aims to create efficient and effective institutional platforms for the rural
poor, enabling them to make their livelihood and good standard of living.
 It aims to cover 7 crore low households, 600 districts, 6000 blocks, 2.5 lakh gram
panchayats, and 6 lakh villages across the country through self-help groups and helps
them for livelihood in a period of 8 to 10 years.

National Urban Livelihood Mission (NULM), 2013

 It is a scheme initiated by the Ministry of Housing and Urban Affairs.

 A Centrally Sponsored Swarna Jayanti Shahari Rozgar Yojana (SJSRY) since 1997
has been restructured as DAY - National Urban Livelihoods Mission since 2013.
 It is for all cities with a population of more than 1 lakh or more.
 It was brought in to decrease poverty, gain self-employment and skilled wage
employment, and build strong grassroots level institutions.
 The mission would aim at providing shelter equipped with essential services to the
urban homeless