India

THE PROBLEM OF FARMING SECTOR IN INDIA IS ONE OF COLOSSAL NUMBERS IN TERMS OF PEOPLE.

on
December 13, 2018

1. The farming sector CANNOT support 65% of our population , or 82 crs people.

2. 90% of our farm holdings are just 1.15 hectres in size.

3. This means that, as per the Dalwai Committee Report, the per capita income of the small farmer ( I am not counting here the landless farm labourers whose plight is much worse) is just RS. 77,976/ per annum , or just Rs. 6,498/ per month.

4. If we take our GDP of Rs. 250 lakh Crs , the farming sector contributes just 15% of it, or Rs. 38 lakh Crs.

5. The balance 85% of the GDP amounting to Rs.213 lakh Crs is earned by just 35% of our population!

6. That is the non farming sector population earns as much as 5.60 times more than a small farmer.

7. With just Rs. 6500/ a month or just Rs. 200/ per day, the poor farmer just cannot,

7.1. give a good education to his children;

7.2. cannot even by the essential medicines from a pharmacy.

7.3. Thus the sad reality is that crores of our people are languish in perpetual poverty ; no Govt will have the financial wherewithal to ensure a dignified life for them.

8. THE SOLUTION DOES NOT LIE IN VOTE BANK POLITICS

8.1. The first thing every newly elected State & Central Govt. does is to write off thousands of crs of farm loans;

8.2. keep increasing the MSP for rice, West, pulses , cotton & millets.

8.2.1. The Modi Govt. has implemented a very progressive policy of fixing the MSP at 150% of the cost of production. In 2018, it increased the MSP by substantial amounts, for example, the support price of moong dal was raised by a whopping RS.16000/ a quintal.

9. All this and more are NOT going to give the small farmer a decent standard of living FOR THE SIMPLE REASON THAT THE AVG HOLDING OF JUST 1.15 HECTRES IS JUST NOT ECONOMICALLY VIABLE!

10. Farming will not be economically viable even by Indian standards of income,unless the minimum holding size is at least 12 to 15 hectres.

10.1. For this to happen , we need to bring in a massive migration of the people in the farming sector to other productive sectors like Services and Manufacturing.

10.2. The agriculture Sector in India just cannot provide a decent lively hood, even by the low Indian Standards to more than 10 to 15% of our population population .

11. This implies that we have to migrate 60+ crs of people from farming to the other Sectors of the economy!

12. And how are we going to enskill them to be ready to take up the new vocations?

13. Tectonic NATION BUILDING efforts combined with population management spanning some 20- 25 years will be required to make this happen.

14. Are we ready for this ?

Ramdas Iyer

13.12.2018

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