Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
LATEST NEWS UPDATES | Why It Is Hard To Double Farmers’ Income By 2022 -Abhishek Waghmare

Why It Is Hard To Double Farmers’ Income By 2022 -Abhishek Waghmare

Share this article Share this article
published Published on Mar 31, 2016   modified Modified on Mar 31, 2016
-The News Minute/ IndiaSpend

Efficient agricultural markets can also be a potent tool for poverty reduction

“We are grateful to our farmers for being the backbone of the country’s food security. We need to think beyond food security and give back to our farmers a sense of income security. Government will, therefore, reorient its interventions in the farm and non-farm sectors to double the income of the farmers by 2022.” —Finance Minister Arun Jaitley, budget speech, February 29, 2016.

After adjusting for rising costs, an Indian farmer’s income effectively rose 5% per year over a decade (2003-2013), according to an IndiaSpend analysis of various government data, calling into question Jaitley’s declaration of doubling income over the next five years.

Doubling of real incomes would be “a miracle of miracles”, as it would imply a compound growth rate of 12% per annum, Ashok Gulati, former chairman of Commission for Agricultural Costs and Prices and Professor, Indian Council for Research on International Economic Relations, wrote in Indian Express.

The average monthly income from raising crops and rearing animals increased from Rs 1,060 in 2003 to Rs 3,844 in 2013, according to the report Situational Assessment of Agricultural Households by the National Sample Survey Organisation, a compounded annual income growth rate of 13.7%.

The 2003 report considered only land-owning farmers, while the 2013 report considered all agricultural households, including landless labourers, we will consider only incomes from cultivation and rearing animals.

To double the income of farmers by 2022, in nominal (numerical) terms—which do not take inflation into account—would require a 15% annual income growth rate (compounded), according to our estimates.

So, the government would seemingly have to ensure a marginal increase in the rate of income growth—keeping business as usual—from 13.7 % to 15% per year to deliver on the promise of doubling farmer income.

However, there are four hurdles:

* increasing input costs, such as seeds, fertilisers and irrigation
* irrelevance of minimum support price, which the government pays farmers when it buys their crops
* absence of market infrastructure, such as warehouses and cold storages, and
* the fact that 85% of farmers do not benefit from insurance.

Unless these issues are addressed, a farmer’s income will only double nominally. Real income in 2022, adjusted for inflation and increased expenditure, will still be close to 2016 income, according to this report by Devinder Sharma, an eminent food and trade policy analyst.

Please click here to read more.


The News Minute/ IndiaSpend, 30 March, 2016, http://www.thenewsminute.com/article/why-it-hard-double-farmers%E2%80%99-income-2022-40932


Related Articles

 

Write Comments

Your email address will not be published. Required fields are marked *

*

Video Archives

Archives

share on Facebook
Twitter
RSS
Feedback
Read Later

Contact Form

Please enter security code
      Close