Agriculture and Rural Development Agriculture and Cooperation

Take steps to enhance the profitability in agriculture.

In Progress
Last Updated: Thursday 08 March 2018
Tuesday 06 February 2018Lok Sabha

The NDA-2 Government has set a goal for doubling the farmers' income by 2022. The NITI Aayog has constituted a Task Force for demonstrating doubling of farmers income through new business models and relieving farmers' distress. The Central Government is working appropriately to achieve the target of doubling the income of farmers by 2022.

For this purpose, the Government has constituted an Inter Ministerial Committee on April 13, 2016, under the Chairmanship of Chief Executive Officer, National Rainfed Area Authority, Department of Agriculture, Cooperation, and Farmers' Welfare, to examine issues relating to doubling of farmers' income and recommend a strategy to achieve the same by the year 2022.

Alongside working on a comprehensive strategy, the Committee has been suggesting various intervention alongside for consideration. In order to involve the stakeholders across the country in finalizing the strategy, the Committee has been placing its reports in installments. As on January 2018, nine Volumes of the draft Report prepared by the Committee have been uploaded on the website of the Department for seeking public opinion. Some of the recommendations of the Committee are being implemented. They include the following:

  • a comprehensive State Market Act to introduce reforms and competition for creating a competitive price discovery environment - following this, a Model State/UT Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017, has been drafted, approved, and shared with the States;

  • a Model Contract Farming Act is now at the final stage to help farmers enter into pre-season price agreement on their produce;

  • restructuring of Directorate of Marketing and Inspection (DMI), so as to provide technology backstopping to a system for price and demand forecast;

  • a five-year Roadmap for Pulses Production, with the aim of achieving a production status of 24 million tonnes;

  • a comprehensive roadmap for increasing the production of oilseeds in the country;

  • continuation of the Rashtriya Krishi Vikas Yojna (RKVY) for three years as Remunerative Approaches for Agriculture and Allied Sector Rejuvenation (that is, RKVY-RAFTAAR) which aims at making the farming as a remunerative economic activity through multi-pronged approach along with holistic development of agriculture and allied sector - the new guidelines provide for major allocation for creation of production and post-production infrastructure, beside promoting agri-enterprises and incubation facilities;
  • an institutional mechanism at State- and District-levels to undertake integrated and comprehensive review of agriculture and allied activities and farmers welfare;

  • computerization of Primary Agriculture Cooperative Societies (PACSs) - a budgeting provision has been made to computerize all the PACSs in a period of 3 years (2017-18 to 2019-20); and

  • a new market architecture under which 22,000 rural haats are to be upgraded as centers of aggregation and direct sale-purchase of agri-commodities.

The Government is aiming to reorient the agriculture sector by making it income-centric rather than purely a production-centric activity. A farmer's income is a basket of earnings from agriculture (including horticulture), allied activities like dairy, livestock, poultry, fishery etc., and ancillary activities like beekeeping etc. Apart from these farm incomes, a farmer also earns from other activities like wage labour, off-farm activities etc. Earnings from agriculture constitute the principal source of income of a farmer.

The National Sample Survey Office (NSSO) conducted a Situation Assessment Survey (SAS) of Agricultural Households during NSS 70th round (January 2013 - December 2013) in the rural areas of the country with reference to the agricultural year July 2012 - June 2013. The survey estimated the average monthly income per agricultural household as Rs. 6,426. There has been no further assessment of the farmers income thereafter (2013-14 to 2017-18).

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