Doubling of farmers income

28. Jul 2019

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Doubling of farmers income

  1. Name - Dhore Sayali Sharad Reg. No – AKN-2017/020 Semester – V Submitted To – Dr. S.M.Hadole, Principal, K.K.W. College of Agriculture,Nashik K.K. Wagh College of Agriculture, Nashik
  2. Topic :Doubling of Farmers Income Course Title – Entrepreneurship Development and Business Communication Course no – EXTN-355
  3. • The vision of doubling farmers’ income by 2022 by Honourable Prime Minister Narendra Modi was announced by the Honourable Finance Minister Shri Arun Jaitley during his budget speech on February 29,2016. • After the Green Revolution, India’s food production multiplied by 3.7 times while the population multiplied by 2.55 times. • The food production has increased from 51 m tonnes in 1950-51 to 273 m tonnes in 2016-17. • The net result has been a 45% increase in per person food production , which has made India food self sufficient at aggregate level and also a net food exporting country. INTRODUCTION:
  4. SOURCES OFGROWTH INFARMERS’INCOME: The major sources of growth operating within agriculture sectorare:- • Improvement in Agriculturalproductivity. • Resource use efficiency or Total FactorProductivity. • Increase in cropping intensity. • Diversification towards high value crops. The major sources of growth outside agriculture include:- • Shifting cultivators from farm to non-farmoccupations. • Improvement in terms of trade for farmers or real prices received by farmers.
  5. A. SOURCES OF GROWTH WITHIN AGRICULTURE SECTOR: 1. INCREASE IN AGRICULTURALPRODUCTIVITY:  Two sources to increase in agricultural output are area and productivity.  In present scenario, agricultural output has to be increased through improvement in productivity per unit of land.  Enhancing access to irrigation and technological advancement are the most potent instruments to raise agricultural productivity and production in the country.  Biotechnology can also play an important role in increasing crop and livestock production.  Aggregate productivity of crop sector increased at the rate of 3.1 percent per year during 2000-01 to 2013-14.
  6. 2. IMPROVEMENT IN TOTAL FACTOR PRODUCTIVITY:  Improvement in TFP is an important source of output growth which directly contributes to cost saving and thus increase in income.  TFP growth represents effect of technological change, skill, infrastructure etc, which are not counted in the set of production inputs.  According to Fuglie and Rada (2015), agriculture sector in India has witnessed 2.62 per cent growth in TFP during 2004-12.  Improvement in farm services such as Agri- clinics also adds to the TFP.
  7. 3. DIVERSIFICATION TOWARDS HIGH VALUE CROPS:  Staple crops (cereals , pulses, oilseeds) occupy 77 per cent of the total or gross cropped area (GSA) but contribute only 44 per cent of total output of the crop sector.  HVC’s ( fruits, vegetables, fibre, condiments and spices and sugarcane ) occupy just 19 per cent of gross cropped area (GSA) and contribute the same 44 per cent of total output of the crop sector.  Between 2004-05 and 2013-14, area under HVC’s in India increased by 9.16 million hectare (Mha), at an annual growth rate of 3.31 per cent. Farmers’ income can also be increased by diversifying towards other allied enterprises like forestry rather than surviving primarily on crop cultivation. 4. INCREASE IN CROP INTENSITY:  It includes raising of short duration crops after the main kharif and rabi season with the availability of irrigation and new technologies.
  8. B. SOURCES OF INCOME GROWTH OUTSIDE AGRICULTURE SECTOR: 1. IMPROVING TERMS OF TRADE FOR FARMERS:  Use of appropriate deflator to arrive at real income of farmers or agricultural sector. eg: CPIAL (Consumer price index for agricultural labour) .  Better price realisation through online trading. eg: e-NAM (e- National Agricultural Market) and revision of APMC Act .  Opening of markets to traders outside the mandi through online marketing. eg: UMP (Unified Market Platform).
  9. 2. SHIFTING CULTIVATORS TO NON-FARM AND SUBSIDIARY ACTIVITIES:  In rural areas, agriculture sector engages 64 per cent of the total workforce and contributes 39 per cent of total rural net domestic product. This represents overdependence of the workforce on agriculture with significant underemployment.  Income of farmers can be improved substantially by shifting workforce away from agriculture.  According to estimates of NSSO and CSO, non-farm sectors provide 2.76 times more productive employment than agriculture sector in rural areas.
  10. STRATEGIES FOR IMPROVING FARMER’S INCOME: water Honourable Prime Minister has listed out seven strategies to help double the income of farmers . They are : 1) Big focus on irrigation with large budgets and integrated policies , with the aim of “per drop, more crop”. 2) Provision of quality seeds and nutrients based on soil health of each field. 3) Large investments in agricultural infrastructures such as warehousing and cold chains to prevent post-harvest crop losses.
  11. 4)Promotion of value addition through food processing . 5)Creation of a national farm market and removing distortions. 6)Introduction of new crop insurance schemes to mitigate risks at affordable cost like PMFBY ( Pradhan Mantri Fasal Bima Yojana). 7)Promotion of ancillary activities poultry, beekeeping and fisheries . Other strategies that can be adopted are :-  Strengthening organic food programs.  Promotion of Integrated Farming System.  Integrating all central and state subsidies.  Promotion of ICT-based agriculture extension.  Formation of FPO’s to benefit small farmers, women and tribal farmers.
  13. REFRENCES:  Chand, Ramesh (2016), “Why Doubling Farmers’ Income by 2022 is Possible”, Indian Express, Opinion Page, April 15.  Chand,Ramesh, Raka Saxena and Simmi Rana(2015), “Estimates and Analysis of Farm Income in India, 1983-84 to 2011-12”, Economic and Political Weekly, vol.50, No 32, May 30.  Satyasai,K.J.S.(2015) and Sandhya Bharti(2016), “Doubling Farmers’ Income: A Way Forward”, Rural Pulse, Issue No.14, March-April, NABARD, Mumbai.  Government of India(2005), Situation Assessment Survey of Farmers- Some Aspects of Farming,NSSO Report 496, Planning Commission ,New Delhi.  Government of India (2014), Situation Assessment Survey of Agricultural Households in India, NSSO Report 70th Round,December.  Gulati,Ashok and Shweta Saini (2016), “ From Plate to Plough: Raising Farmers’ Income by 2022”, The Indian Express, March 28.  Slide Share ppt.