Citizens' Issues
How to double farmers' income in seven years
Doubling of farmers' incomes will require large-scale changes in the output that India currently produces and how it goes about producing it. India will gain massively by shifting focus to pulses and horticulture and by moving people out of agriculture, says a report
 
Prime Minister Narendra Modi on Wednesday strongly defended his government's ambitious promise to double farmers' income in five years that was doubted by the opposition. He said the plan was possible if farmers start using novel agricultural practices and value-add their products. However, this requires a radical rethink of Indian agriculture, including a decisive break from the past and move from cereals to pulses and horticulture, says a research report.
 
In the report, Kotak Institutional Equities Research says, "...doubling of incomes will require large-scale changes in the output that India currently produces and how it goes about producing it. India will gain massively by shifting focus to pulses and horticulture for local consumption, export and import-substitution and by moving people out of agriculture."
 
According to the research note, there are two ways for doubling agricultural income, one increasing the actual income and two, making farming less labour-intensive activity. It said, "There are two ways to think about the Finance Minister’s commitment to double the incomes of farmers by 2022. One is to think about doubling the incomes such that (current and future) farmers make 2 times the incomes they make currently. The other is to make farming less labour-intensive such that the farmers that remain get 2 times the income that they currently make. India will need to pursue policies that embrace both these dimensions. It is important to note that what will eventually matter are the ‘real’ increases in incomes. India recently had a disastrous run with wide-spread inflation partly stemming from large nominal increases in food crop prices."
 
The oft-quoted statistic of half of India’s population contributing only a sixth or less of its GDP highlights the poor state of affairs of farmers and agriculture. The chart below shows that the average income of a household associated with agriculture is half that of those in the services sector.
 
 
Indian agriculture continues to remain labour-intensive and accommodates many disguised unemployed. India’s output of about 500 million tons of cereals, pulses and horticulture is less than half the output of the US grown over similar 150 million hectare (ha) of cultivated area; also US has only around three million farmers, compared to about 250 million people in India associated with agriculture. New jobs, as the chart below shows, are all expected to be created outside of agriculture. A move out of agriculture is required both by the Indian agri-economy and its non-agri counterpart, the report says.
 
 
 
India needs to produce more agriculture products, the research note says, adding, "India’s agricultural output has been shaped by the various support structures put in place by the government including minimum support prices and procurement infrastructure. The focus of both of these has been meaningfully skewed towards cereals like wheat and rice. India now over-produces cereals for its requirements but significantly under-produces cereals and vegetables. Typically, farmers end up realizing around Rs15 a kg for cereals; pulses and vegetables, however, can fetch them between Rs20 and Rs40 per kg at farm-gate prices, fruits, in some cases, higher."
 
 
The rebalance in output that India requires for its own consumption over the next decade, based on the ideal calorie requirements of the country’s population in 2025. "Even as India rebalances – and increases – its output for its own consumption, it should look at global markets for its produce by dramatically increasing yields. A corollary advantage of exporting to the world by meeting stringent phytosanitary conditions of global trade is that it will improve the overall quality of Indian produce, even for local consumption. Exports will help build capital in the agri sector similar to the trends seen in manufacturing and services," the report says.
 
According to Kotak Institutional Equities Research, India needs to focus on building the processing infrastructure and marketing linkages for pulses and horticulture. "Farmers gain comfort and confidence if they can see others around them producing a commodity and making money – creating pulses and horticulture zones with processing capacities can convince farmers to shift their cropping pattern. Opening up of foreign direct investment (FDI) in the food processing sector is hence a positive. Coupled with mechanisation and high-yielding seeds, growth in topline can manifest in even stronger bottom-line growth. The goal of two times farmer income is achievable – we just need to break from the past in our approach," it concluded.

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COMMENTS

Nalin Patel

11 months ago

government does good thing for farmer, they provide machinery like tractors etc to farmer at a very low price, but corruption takes place at the machinery shop site, all the machines are rendered useless, so if some onegoes to the government machinery depot for hiring machine, they get standard answer machines need repair and it will take some time to hire them out, and by that time season changes and there is no use of machine, farmer has to act in time with season.......... also government has to shift to proper units to make understand theri statical data, they should use "constant ruppee" along with "quantitative unit like tons or kilograms " dual units or triple units are needed to render statistical data meaniningful, they may add demand supply units surplus unit also....... also 100% jump in income is not possible at a single point, the increase will be achieved some 1% here and 2% ther and another 10% there like these they can addup to 100% cumulatively......

Jyoti Dua

11 months ago

Very informative article with lot of facts and figures. Hopefully our farmers are encouraged to shift from cereals to pulses and vegetables. Govt should provide infrastructure for it.
Milk production should be secondary source of income for every farmer.

PPM

11 months ago

The only way to double the income of the farmers is to reduce the input costs - there were no chemical fertilizers used before and chemical fertilizers are the villains of both the farmers and the general public.

SuchindranathAiyerS

11 months ago

This report smells, uncomfortably, of Centralized Planning and Control. The Totalitarian Way. All the State needs to do is provide infrastructure (up to the last mile) of power, irrigation, transport and storage, broad cast market information (prices, production estimates,by category against demand estimates etc) remove all input subsidies, remove all social engineering legislation, ban GM, chemical fertilizers and pesticides, and impose taxes on agricultural income. In this same sequence. It will take more than seven years, but it result in Quintupling India's GDP, food security and distributed rural prosperity.

Raghu Mandava

11 months ago

Following ZBNF promulgated by Subhash Phalekar, will do good for the farmers by increasing their income.
Recently govt had awarded him Padma Sri, why don't they take his advice.

No farmer committed subside who followed his ZBNF farming.

India top recipient of remittances in 2015
New Delhi : India was the top recipient of remittances in 2015, the government said on Wednesday citing the World Bank.
 
“According to the World Bank Migration and Remittances Factbook, 2016, India is the top recipient of remittances in the world for the year 2015,” Minister of State for External Affairs V.K. Singh said in reply to a question in the Lok Sabha.
 
He said that, according to information received from the Reserve Bank of India, the amount of remittances to India in 2013-14 was $69.6 billion and in 2014-15 the figure reached $69.8 billion.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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ISRO getting ready to launch India's sixth navigation satellite
Chennai : The 54 hour, 30 minute countdown status for the March 10 launch of an Indian rocket with the country's sixth navigation satellite is proceeding normally, the Indian Space Research Organisation (ISRO) said on Wednesday.
 
According to ISRO, the progressing status of the countdown for the launch of 44.4 metre, 320 tonne Polar Satellite Launch Vehicle (PSLV) carrying Indian Regional Navigation Satellite System-IRNSS-1F is expected to blast off around 4 p.m. on Thursday.
 
Around 20 minutes into the flight, the rocket is expected to put into orbit the 1,425-kg IRNSS-1F satellite at an altitude of 488.9 km.
 
The satellite with a design life span of 12 years has two payloads for navigation and ranging.
 
The navigation payload of IRNSS-1F will transmit navigation service signals to the users. This payload will be operating in L5-band and S-band. A highly accurate rubidium atomic clock is part of the navigation payload of the satellite.
 
The ranging payload of IRNSS-1F consists of a C-band transponder (automatic receivers and transmitters of radio signals) which facilitates accurate determination of the range of the satellite.
 
IRNSS-1F also carries Corner Cube Retro Reflectors for laser ranging.
 
Till date, India has launched five regional navigational satellites (IRNSS-1A, 1B, 1C, ID and 1E) as part of a constellation of seven satellites to provide accurate position information service to users across the country and the region, extending up to an area of 1,500 km.
 
Though the full system comprises nine satellites -- seven in orbit and two on the ground as stand-by, the navigation services could be made operational with four satellites, ISRO officials had said earlier.
 
Each satellite costs about Rs.150 crore and the PSLV-XL version rocket costs about Rs.130 crore. The seven rockets would entail an outlay of about Rs.910 crore.
 
The entire IRNSS constellation of seven satellites is planned to be completed in 2016 itself.
 
The first satellite IRNSS-1A was launched in July 2013, the second IRNSS-1B in April 2014, the third on October 2014, the fourth in March 2015, and the fifth in January this year.
 
The seventh satellite-IRNSS-1G- is expected to be launched in the second half of 2016.
 
Once the regional navigation system is in place, India need not be dependent on other platforms.
 
According to ISRO, with the operationalisation of five IRNSS satellites, the proof of concept of an independent regional navigation satellite system over India has been demonstrated for the targeted position accuracy of better than 20 metres over 24 hours of the day.
 
The operationalisation of the sixth satellite following its launch on March 10 a better position accuracy will be provided, ISRO said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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