close_game
close_game

Guest Column | Target household economy to enhance farmers’ livelihoods

Jan 21, 2025 10:08 PM IST

Microeconomic strategies, if tailored to the unique circumstances of farming households, can significantly uplift rural livelihoods. Diversifying income sources, improving credit access, optimising resource use, strengthening market connections, and investing in infrastructure, health, and education are critical

In the expansive rural landscapes of India, agriculture, the primary occupation, has long been mired in challenges and subsistence living. For years, farmers have faced the relentless onslaught of erratic weather and fluctuating market forces. Despite attempts to implement macroeconomic policies, their tangible impact on the ground has not been adequate. What farmers need are strategies that speak to their everyday realities — solutions that elevate their household economies through focused microeconomic approaches.

What farmers need are strategies that speak to their everyday realities — solutions that elevate their household economies through focused microeconomic approaches. (HT File)
What farmers need are strategies that speak to their everyday realities — solutions that elevate their household economies through focused microeconomic approaches. (HT File)

A farmer’s household economy extends far beyond the fields. It is a complex weave of agricultural income, non-farm activities, consumption needs, credit access, and unforeseen expenses. This multifaceted reality requires targeted microeconomic measures to diversify income, improve credit access, and optimise resource management and consumption.

Diversifying and empowering

Agriculture is inherently risky, with income often subject to the whims of nature and market fluctuations. Diversification into agro-processing — converting raw agricultural products into market-ready goods — can provide a vital income buffer through small and micro enterprises. Allied occupations such as dairy farming, poultry, fisheries, and beekeeping offer stable income streams, particularly for small landholders. Modern techniques in these areas can significantly boost productivity and profitability.

The dairy sector exemplifies the potential for income diversification and economic stability. By adopting advanced processing methods and establishing direct market links through cooperatives, farmers can achieve higher and more stable incomes. Amul, a pioneering dairy cooperative, illustrates the transformative power of such models, supporting millions of farmers and boosting rural economies through improved income and empowerment.

Investing in the empowerment of women in rural economies is equally important. Despite their essential contributions to agriculture, women frequently face barriers such as limited access to land, capital, and decision-making roles. Empowering women through financial resources, training, and entrepreneurial opportunities is crucial for enhancing the overall economic potential of rural households. Women’s contributions should be valued and accounted for, ensuring they receive the recognition and resources they deserve.

Rural youngsters often migrate to urban areas for better opportunities, leaving a gap in the agricultural workforce. Mechanization and agri-tech innovations can alleviate this issue. Providing modern farming equipment and training can make agriculture more appealing and less labour-intensive.

Skill development programmes can reinvigorate the interest of youngsters in agricultural careers. Government initiatives, such as the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), have started bridging this gap, but expanding these programmes to include digital literacy and modern farming practices is crucial.

Farm-to-market navigation remains a significant hurdle. Access for small and marginal farmers to the market through system-based technological tools should be prioritised. Strengthening cooperatives and leveraging digital platforms like e-NAM have shown promise in eliminating middlemen and securing better prices for farmers. More than 1.6 crore farmers have benefited from e-NAM, but market inefficiencies persist. Expanding digital platforms and promoting Farmer Producer Organisations (FPOs) can enhance price transparency and market access, empowering farmers to negotiate better returns.

Optimising resource use

Inefficient resource use and low input efficiency hamper profitability. Adopting sustainable practices, such as drip irrigation, precision farming, organic input support systems, and rainwater harvesting, can boost productivity and resilience. For instance, drip irrigation in Gujarat has increased water efficiency by 40% and yields by 20%. These practices lower input costs and mitigate environmental risks, which are crucial in the face of climate change.

Supporting farmers in adopting climate-resilient agricultural methodologies can help them manage the heightened unpredictability of weather patterns exacerbated by climate change. Developing drought-resistant crop varieties, improving soil-management practices, and integrating agroforestry can mitigate adverse climate impacts.

Utilising knowledge as a powerful tool for transforming rural household economies is vital. Training in modern agricultural techniques, financial literacy, and entrepreneurship is essential. Institutions like Krishi Vigyan Kendras (KVKs) play a pivotal role in skill dissemination. Expanding these programmes and integrating digital literacy can empower farmers, enabling them to leverage online resources for market connectivity and financial management.

Infrastructure deficiencies, from storage facilities to transportation, hinder the agricultural supply chain. Investing in rural roads, cold storage, and electricity grids can significantly reduce post-harvest losses and improve market connectivity. Improved infrastructure streamlines supply chains, minimises wastage, and ensures competitive pricing for farmers.

Social safety nets

Farmers face numerous uncertainties, from unpredictable crop failures to health-related crises. Expanding agricultural insurance, promoting education and training, and better health coverage can provide essential safety nets. The Pradhan Mantri Fasal Bima Yojana (PMFBY) has made significant strides by insuring over 5.7 crore farmers against crop-related losses due to natural disasters. Alongside insurance, expanding microfinance solutions tailored to rural needs is crucial for improving financial inclusion and alleviating financial pressures on farmers. The success of self-help groups (SHGs) in providing affordable loans serves as a compelling model for broader outreach.

An all-inclusive Akhil Bhartiya Samajik Nyay and Suraksha Programme (All India Social Justice and Protection Programme) for rural households, integrating the present scattered and disaggregated initiatives, could help better target social protection measures.

Strengthening and expanding NREGA can significantly uplift the rural economy by ensuring consistent income for households, reducing migration, and enabling skill development. NREGA complements agriculture, particularly by providing alternative income to agricultural workers during lean seasons. It should be expanded to cover marginal and ultra-marginal farmers, enabling them to earn wage income when they have less or no work on the farm.

In this manner, microeconomic strategies, if tailored to the unique circumstances of farming households, can significantly uplift rural livelihoods. Diversifying income sources, improving credit access, optimising resource use, strengthening market connections, and investing in infrastructure, health, and education are critical. These measures create a resilient rural economy, where farmers and those dependent on agriculture for their livelihoods will not only survive but thrive.

Implementing these strategies in the Union Budget-2025 can catalyse a robust rural economy, boosting domestic demand and fostering sustainable agriculture through better-nuanced policies. These strategies can help streamline the rural economy towards more productive investments and sustainable growth, rather than reliance on temporary incentives, often referred to as ‘revdis’. sureshkumarnangia@gmail.com

The writer is a retired Punjab-cadre IAS officer. Views expressed are personal.

rec-icon Recommended Topics
Share this article
See More
SHARE THIS ARTICLE ON
SHARE
Story Saved
Live Score
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Wednesday, February 19, 2025
Start 14 Days Free Trial Subscribe Now
Follow Us On