Doubling farm incomes: Why change is still slow
Deccan ChronicleAgriculture’s contribution to economic value addition is shrinking worldwide. But that is cold comfort for the families of 118 million small and marginal farmers in India, comprising 85 per cent of the 139 million land holdings. These subsidies — purchase above market rates; fertilisers supplied at below market rates; electricity supplied at below cost; canal water supplied at below cost, even the fixed cost — together account for one per cent of GDP or around Rs 1.7 trillion. Only around one-third of agricultural produce is currently procured by state entities, which is then fed into the public distribution system with a subsidy of more than 90 per cent on cost or released into the market to stabilise food prices. We are missing out on 0.2 per cent of GDP growth and higher incomes for 200 million poor farmers.