India needs income-centric agri policies, greater Centre-state coordination: EAC-PM chairman
India must transition agriculture towards income generation, emphasizing crop diversification and market reforms, said S Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM).
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Context
The Chairman of the has advocated for a paradigm shift in India's agricultural policy, moving from a production-centric to an income-centric approach. He emphasized the need for diversification into high-value crops, greater technology adoption, strengthening farmer collectives like , and enhancing Centre-State coordination to boost farmer incomes and drive an export-led agricultural strategy.
UPSC Perspectives
Economic
The transition from a production-centric to an income-centric approach is a critical pivot in Indian agricultural policy. Historically, initiatives like the focused on achieving food security by maximizing the output of staple crops (rice and wheat). However, this led to structural issues like skewed cropping patterns and stagnant farmer incomes. An income-centric approach focuses on profitability, risk mitigation, and value addition. Diversification into high-value agriculture (horticulture, livestock, fisheries) is essential because these sectors offer higher rates of return compared to traditional staples. The article highlights the crucial role of agro-processing as a bridge between agriculture and manufacturing, offering a pathway for rural industrialization and job creation. By establishing cluster-based processing units, India can achieve economies of scale and reduce post-harvest losses, which is vital for containing food inflation. The push for an export-led agriculture strategy requires navigating Free Trade Agreements (FTAs) and overcoming non-tariff barriers (like ), necessitating strict adherence to global quality standards. UPSC often questions the viability of crop diversification and the challenges in doubling farmers' income.
Governance
A key challenge highlighted is the need for effective Centre-State coordination. Under the of the , agriculture is primarily a State subject (Entry 14, State List). Therefore, while the Central Government can formulate broad policies and provide funding (e.g., ), the actual implementation of market reforms, technology dissemination, and infrastructure development rests with the States. The EAC-PM Chairman advocates for a 'food-systems approach,' requiring convergence across various ministries (Agriculture, Food Processing, Commerce) and levels of government. The emphasis on strengthening collectives like and is crucial for empowering the 86% of Indian farmers who are small and marginal. These institutions provide collective bargaining power, enabling better access to inputs, credit, and markets, offsetting the disadvantages of fragmented landholdings. Initiatives like aim to professionalize the cooperative sector, which is vital for equitable rural development. The growing feminization of agriculture, due to male out-migration, also necessitates gender-sensitive policy interventions.
Technological
The integration of advanced technologies is portrayed as a major catalyst for structural change in agriculture. The use of in agriculture, exemplified by initiatives like , can revolutionize farming by providing plot-level data. This enables precision agriculture, optimizing the use of inputs like fertilizers and water, thereby reducing costs and environmental impact. Technologies such as Artificial Intelligence (AI) can be utilized for both supply-side improvements and demand forecasting, helping farmers make informed decisions. The application of drones for crop monitoring and spraying, along with satellite data for weather and soil analysis, empowers farmers with evidence-based advisories. The mention of gene-editing technology (like ) and genetically modified crops points to ongoing debates about raising yields and climate resilience, which require robust regulatory frameworks. A critical concern raised is the digital divide; policies must ensure that these technological advancements are accessible to all farmers, not just the technologically adept or resource-rich, to prevent widening inequalities in the agricultural sector.