MEASURES TO DECREASE SHOCKS
So for we have discussed about economy significance of Indian agriculture to Indian economy and how green revolution changed the face of Indian agriculture sector. We also looked at the importance of PDS and MSP in securing the food security of the nation and analyzed in detail the economic ecological and global challenges that agricultural sector is facing.
In this article, we will look at the measures needed as well as taken to deal with the challenges and to decrease the shocks faced by the farmers.
SOCIAL MEASURES
Social security measures such as health insurance, old age pension, primary health care should be put in place and strengthened. Village Knowledge Centers should be established to spread awareness. Community members should be educated to recognize distress and suicidal signs.
ECONOMIC MEASURES
Economic measures such as adopting low cost technology to maximize output are imperative to the advancement of the sector. Efforts need to be made to deliver remunerative prices for the produce. Advancements in post harvest processing and storage technologies along with better infrastructural connectivity can deliver better economic returns for the produce.
Also, farmers must be encouraged to diversify their sources of income. Farmers must develop sources of non-farm income and must be well versed with the economical advantages of animal rearing.
PRO-ACTIVE GOVERNMENT INITIATIVES
Measure such as from loan waivers though may be helpful in the short term; they do more evil than good in the long run. Long term measures such as improving infrastructure, reforming APMCs, etc are more impactful as well as sustainable.
The Commission for Agricultural Costs and Prices should recommend increased Minimum Support Price (MSP). The 2006 MS Swaminathan committee report had suggested that MSP should be set at least 50% more than the weighted cost of production.
Local seed banks should be set up to increase affordability and availability of quality seeds. Government should also focus on watershed development. Neeranchal watershed program is a world bank assisted National Watershed Management project which brings about intuitional changes in watershed and rain fed agricultural management practices in India.
INSTITUTIONAL MEASURES
Setting up of state level farmers commission to take input from farmers would make the government more responsive to the needs of farmers. Government should restructure the microfinance policies keeping in mind the sensitivities and needs of farming communities.
Crop insurance coverage in India is dismal 7%. Affordable insurance premiums must be fixed and coverage should be expanded. Pradhan Mantri Fasal Bhima Yojana (PMFBY) aims to provide insurance coverage and financial support to the farmers in the event of natural calamities, pests and diseases. It follows an area based approach and leverages the use of technology, mobile phones, etc to expedite the processing of claims. It is implemented on the basis of “one crop, one rate” and prescribes a very low uniform premium rate to be paid by the farmer and the balance will be paid by the government. The farmer has to pay premium of 2% for Kharif crops and 1% for Rabi crops.
The government should also strengthen the institutional credit mechanisms. The dependence on local money lenders has been detrimental to the financial health of the sector. The government must leverage the JAM (Jan Dan, Aadhar and Mobile) trinity to facilitate easy access to institutional credit.
Soil Health Cards have been provided to the farmers giving the nutrient states of their land holdings. It contains the advice regarding the dosage of fertilizer that they should use for a particular crop. It also includes the prescription for the needed soil amendments to improve the health of the soil.
Soil Health Managers should be appointed to monitor and suggest means to redeem the soil in degraded regions and rectify salinity, alkalinity, water logging, etc
In this article we have discussed about various social, economic and government initiatives in dealing with the challenges and increase stability in Indian agricultural sector.