Q: Discuss the causes and consequences of India's agrarian distress. What policy reforms are needed? 15 Marks~250 words
Introduction: Despite agriculture employing 45% of India's workforce, average farm income remains low (~₹8,931/month per household, NSSO 2019), and farmer suicides (10,281 in 2019, NCRB) reveal deep structural distress.
Causes of Agrarian Distress:
• Structural: Fragmented landholdings (average 1.1 ha), disguised unemployment, no crop insurance culture
• Market: Price volatility, middlemen in APMC mandis extract margins, lack of price discovery
• Climate: Irregular monsoon, extreme weather events, groundwater depletion
• Credit: Institutional credit insufficient → moneylenders charge 24-36% interest
• Input costs: Rising fertiliser, seed, pesticide costs squeeze margins
Consequences:
• Farmer suicides (debt-related): Maharashtra, Telangana worst affected
• Rural-urban migration: Distress migration to cities, overcrowding
• Food security risk: If farming unviable, fewer farmers → less production
• Social consequences: Land alienation, tribal displacement
Policy Reforms Needed:
• Price: Implement Swaminathan Commission's C2+50% MSP formula
• Market: Develop eNAM (electronic national agriculture market) for price discovery
• Credit: Expand Kisan Credit Cards; reduce informal lending
• Insurance: Reform PMFBY — reduce premium, speed up claims
• Diversification: Allied activities — horticulture, fisheries, animal husbandry, FPOs (Farmer Producer Organisations)
Conclusion: Agrarian reform requires simultaneous interventions in price, market, credit, and climate resilience. The vision should be farmer prosperity, not mere food production — doubling farm income (government's 2022 target, partially achieved) through diversification and value addition rather than subsidy dependence.