In a move to double farmers income in India the finance minister announced 16 measures to uplift agriculture sector. This was in line with the objective of ‘Aspirational India’. But it seems impossible to double farmers income in 2 years after the Budget 2020 announcement.
Budget for Doubling Farmers Income
It requires 15% growth rate of farmers’ real income p.a in following three years to double farmers income by 2022. However, India has achieved a growth of 3% p.a during BJP’s first term. Despite allocating major chunk of agriculture budget to PM-Kisan Scheme, only 25% of the country’s farmers received all three installments.
Sixteen Point Action Plan
The government allocated a total of Rs 1,34,399.77 crores to the Department of Agriculture, Cooperation and Farmers Welfare for 2020-21 under the sixteen point action plan. Further, the government proposed comprehensive measures for 100 water-stressed districts. Also, it aimed to make Indian farmers producers of solar power by providing funds to set up solar units on land. Further, the government encouraged state governments to check the implementation of the Model Agricultural Land Leasing Act of 2016 and Model Agricultural Produce and Livestock Marketing Act of 2017.
Apart from this, FM said that the government is encouraging to adopt balanced use of fertilizer and focus more on manure. Besides, the government will encourage FCI and warehousing corporations to establish storage facilities on farmers land. In addition, the government declared the launching of the Krishi Udaan scheme by Civil Aviation ministry which will work on removing the hindrance of transportation of agricultural commodities. Indian railways will provide Krishi Rail for cold storage transportation of perishable commodities under PPP mode. All steps inline to double farmers income by 2022.
Effectiveness of Plan
Encouraging states to implement agricultural marketing reforms is not enough. Politicians and commission agents continue to practice restricted and corrupt trade activities in APMC. Further, the innovative approach to make farmers producers of solar power is commendable. However, farmers can benefit more by setting up solar trees at a height of 10-12 feet. Further, this would allow them to sell solar power to the grid without disturbing their normal cultivation. Also, zero budget natural farming, which FM proposed this year will yield about 20-25% losses. So, the government must move towards making direct cash transfer for the subsidy of chemical fertilizers.
In all, the Indian agriculture sector needs more action-oriented plans or it would remain at the mercy of corrupt officials with no chance of doubling farmers income.