Topic– Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Inclusive growth and issues arising from it.
6) In order to double the farmers income, India should encourage smallholding farmers to boost investment in their farms. Discuss.(250 words)
Why this question
Doubling the farmers’ income in India by 2022 is one of the top priorities of the present government. However, it is not an easy task, given the plethora of challenges faced by agriculture sector. One of the challenges faced by Indian agriculture today is the lack of investment. It is essential to study why and how smallholding farming families be encouraged to invest in their farms.
Key demand of the question.
The question wants us to write in detail about how and why India should encourage farming families to boost investment in their farms. We have to bring out the reasons as to why such a response is required and how to do the same.
Discuss- This is an all-encompassing directive which directs us to dig deep into the issue and write at length about key demand of the question in detail along with all relevant and important aspects, in order to bring a complete picture of the issue.
Structure of the answer
Introduction– write a few lines about India’s objective to double farmers’ income and the imperative to invest in agricultural production, transport, marketing, warehouses and food processing etc.. Mention that the ministry of agriculture estimates that to double farmer incomes by 2022-23, private investment in agriculture must jump two times to almost Rs 1,40,000 crore.
- Discuss why smallholding farmers need to be encouraged invest in their farms. E.g Smallholders (with up to 2 hectares of land) run 85% of the total farms in India and own more than 50% of the livestock; due to the low productivity, low production and lack of market incentives, families receive no commensurate return. So, smallholders have, on an average, less than 10% share of the total private investment in farming.; Assured buying, and export demand in some years, stimulated investment in some crops; eagerness to invest in technology based solutions etc.
- Discuss the strategy as to how farming families can be encouraged to invest in their farms. E.g by encouraging the entrepreneurial energies/ efforts of small farm holders, which form the vast majority of farmers in India; States must similarly develop and defend agricultural markets that work for smallholders by reducing transaction costs and counterparty risks, and raising price discovery, price transparency and bargaining power.; Strong public extension services; enhanced credit disbursal complemented with proper guidance and policies, etc.
Conclusion– Sum up your discussion in a few lines to form a fair and a balanced conclusion.