Agrarian Distress in India

Despite primarily producing rice and wheat, the pre-colonial India was self-sufficient and sustainable. The Indian agriculture, which supported the entire economy, went towards stagnation during the British rule. It still continues to experience deterioration and stagnation, marked by low levels of agricultural productivity.

The British forced the Indian farmers to grow commercial crops. The commercialization of Indian agriculture was initiated through Permanent and Ryotwari Settlements, by giving ownership rights to Zamindars. The commercialization of agriculture was introduced under coercion of British and not out of the incentive of peasantry.

Instead of acting as a catalyst in increasing agricultural productivity, it only filled up the pockets of their colonial bosses. Poor agricultural organisation, obsolete technology and lack of resources among most peasants aggravated their miseries.

Although the Green Revolution was readily adopted after Indian independence and was a great success in many Indian states, there were many poor farmers who could not afford the costs of agricultural inputs to enhance the farm productivity. As a result, the gaps between the social classes widened. There has been an increase in farmers’ suicides because of the building distress.





The lack of a stable agrarian system made it difficult for Green Revolution technology to impact everyone positively.
Moreover, India has a rapid population growth. High population density is associated with smaller farm sizes, greater demand for inorganic fertilizer and lack of other significant resources.

Low international prices of agricultural produce have reduced export while the cheaper imports have hurt the domestic prices of the country. Farmers do not get the appropriate price of their produce leading to denial of rightful income which has increased farmers’ dependence on farm
credit. The informal credit sources such as moneylenders, traders and landlords charge high interest rates and buy agrarian produce at a lower cost. Thus, stuck in a vicious cycle of poverty, debt and low human development, Indian farmers suffer everyday. The situation is more
worrisome in the BIMARU states. There is significant harvest loss due to lack of storage, cold chains and limited connectivity which have added to the woes of farmers.






Indian agriculture contributes 15.4 % to the Indian economy, in contrast with the world average of 6.4 %. The number itself unleashes the vast untapped potential of the Indian agriculture.
With the Atma Nirbhar Abhiyaan ushering much needed reforms in the sector, it becomes imperative to look into some methods that might upgrade this sector.

India should work to improve the low productivity of Indian agriculture. It should look to the Chinese model for production of two of its major crops: rice and wheat, that will not only double the yield but will also reduce land coverage to half.

There is a large dependence on rainfall and post-harvest logistics is still a matter of concern. This leaves the fate of the crops on the vagaries of weather. The access to finance should be made easier to reduce the impact of climate changes. NABARD and RRBs should take up the lead in encouraging farmers to shift to newer technologies. The formation of Self Help Groups (SHGs) should be encouraged, since it has been successful in tackling the obstacles and boosted rural household incomes in the past.
Investment in agricultural infrastructure namely irrigation techniques, warehouses and cold storages should be increased. Government should encourage effective research which can achieve productivity gains, lifting incomes and reducing poverty. The use of genetically modified crops will likely improve the yield for Indian farmers.

There exists a disguised unemployment in the agricultural sector due to lack of proper employment opportunities. The Situation Assessment of India reported that more than 40% of farmers are looking for alternative employment opportunities. Their enthusiasm needs to be tapped to transform agricultural and rural economies. Incentives should be provided in aggregating raw and processed products, agro processing and agro-advisory areas.

Public-Private Partnerships (PPPs) can help replicate the success achieved by biotechnology, in highly import intensive crops such as oil seeds and pulses. It can help farmers connect with their marketplaces and financial institutions for micro-funding and can usher in massive alterations in the rural economy. It will help the agricultural sector in dealing with weather
shocks and allow farmers to minimize risk through insurance.

New digital technologies should be familiarised among farmers. AI based technology should be employed that could analyse the conditions such as type and quality of soil, weather pattern, suggest the appropriate crops and predict the optimum time to harvest. Focus should be on encouraging farmers to go for organic farming and vertical diversification, for sustainable development.






The Government should work to ease uncertainty at each level of the value chain. Considerable potential exists for expanding agro-processing industries to build competitive value chains from producers to urban centres and export markets. Indian farmers receive only 25-30 % of the price the consumers pay for produce. The Government needs to develop a mechanism that would minimize the intervention of middlemen.
The Government should increase the import duty. This would minimize the option for consumers to get the same produce from the international market at best competitive prices.

Consumers would have the choice to purchase domestic purchases. It is in dire need to prioritize the concerns of our own farmers.
The government needs to address agrarian challenges and brings together various programs it undertakes, under one umbrella. Agriculture forms the base of the pyramid of the Indian economy and the policies to deal with it must lie with the local governments at the grassroots level. This calls for a stronger decentralization and empowerment of rural communities in the
political and administrative arena of the country, leading to better agricultural practices and rural demography.

These steps can prove to be important in renewing and rejuvenating rural economies, leading them to inclusive and sustainable growth. Understanding the issues of the sector and proposing credible solutions isn’t enough. It also requires an active involvement of various stakeholders.

Only then can we experience agricultural growth in qualitative as well as quantitative terms.

Written By - Riya Shakchi