Doubling farmers’ income

People believe that PM Modi is a man of his words. The demonetisation drive and the GST rollout had been some of the examples that exhibited his tenacity of purpose. Therefore, farmers — about half of India’s population — believe that their income would double by 2022. Two years have already elapsed since the slogan of “doubling” farmers’ income was given at a kisan rally in Bareilly. Nothing transformational is, however, seen on the ground. The matter has so far resulted in only seminars and conferences. On Tuesday, PM Modi expounded a four-point solution at a conference on this subject: reducing input costs, ensuring better returns, wealth from farm waste and creating non-farm incomes. It should be a surprise to the policy crowd that the government is still grappling with this issue at a philosophical level; while over 60 crore farmers are impatiently awaiting concrete policy actions in the hope of the promised “double” income.

One may cite Budget announcements to give a thumbs-up to the government. Raising the Budget provision for farm loans from Rs 8.5 lakh crore to Rs 11 lakh crore is, however, a band-aid solution, which is worse than the disease. Farmers commit suicide not because they do not get loans. They are forced to kill themselves because of their inability to repay. The announcement of higher MSPs that promises 50 per cent returns to farmers on their input costs is also a sham. How to calculate an acceptable input cost? Can it be uniform for every farmer? MSPs have no relevance unless the government has infrastructure to procure and store crops. And, a sharp hike in MSP would stoke inflation.       

Farmers’ salvation lies in a comprehensive approach — raise incomes and check expenditure. It should be the duty of the State to ensure that a farmer is not forced to sell his land or tractor for the treatment of his mother or for the marriage of his daughter. His children should get the best education at the village; ailing parents should get healthcare facilities at their doorstep. It is possible if industrial townships are developed around villages. They would provide job alternatives to the burgeoning rural population and markets for the farm produce.