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Resource centre on India's rural distress
 
 

Will the new scheme give Aasha to farmers? -Devinder Sharma

-The Hindu Business Line

Hiking MSPs is not enough. The govt must work out a mechanism to provide income transfers to farmers

The launch of a new umbrella scheme — Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) — last week, is a response to the growing farmers’ anger over the last few years. Farmers have been demanding an assured income to emerge out of the continuing agrarian crisis. With open market prices often prevailing at lower levels than even the cost of production, farm indebtedness had multiplied.

For several years now, farm protests have increased manifold. According to the National Crime Records Bureau (NCRB), farmer agitations had almost doubled in two years, to 4,837 protests in 2016, up from 2,683 a year earlier. From 687 protests in 2014, these protests have multiplied seven times in a period of three years, a clear reflection of the growing farmers’ anger.

The reasons are not far to seek. The NITI Aayog has in a study shown that the real farm incomes have increased by less than half a per cent every year, 0.44 per cent to be exact, between 2011-12 and 2015-16. The Economic Survey 2015-16 observes: “According to NSS data, the average annual income of the median farmer net of production costs from cultivation is less than ?20,000 in 17 States. This includes produce that farmers did not sell (presumably used for self-consumption) valued at local market prices.”

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