Introduction

• Supreme Court Committee Report: A high-level committee, appointed by the Supreme Court in September 2024, submitted its interim report on November 21, 2024, highlighting the severe distress in India's agricultural sector.
• Key Focus Areas:
  • Income crisis faced by farmers
  • Rising debt burden
  • Farmer suicides
  • Stagnation in agricultural growth
  • Impact of climate change

Key Findings of the Supreme Court Committee Report

Income Crisis in Indian Agriculture

• Daily Earnings: Farmers earn an average of just Rs 27 per day from agricultural activities, a meager income that makes it impossible to sustain a decent standard of living.
• Average Household Income: Agricultural households have an average monthly income of Rs 10,218, far below the basic threshold for a decent life.

Escalating Debt Burden

• Institutional Debt: In 2022-23, Punjab's institutional debt was Rs 73,673 crore, and Haryana's was Rs 76,630 crore.
• Non-Institutional Debt: This burden is further exacerbated by non-institutional debt, contributing 21.3% of total debt in Punjab and 32% in Haryana.

Farmer Suicides

• High Suicide Rates: Over 400,000 farmers and agricultural workers have committed suicide since 1995, primarily due to escalating debt and financial despair.
• Survey Findings: In Punjab, a survey found 16,606 suicides among farmers and farm workers between 2000 and 2015.

Stagnation in Agricultural Growth

• Growth Rates: Between 2014-15 to 2022-23, Punjab's agricultural growth was a mere 2% per year, and Haryana’s was 3.38%, far below the national average.

Disproportionate Employment

• Workforce Participation: 46% of India’s workforce is employed in agriculture, but it contributes only 15% to national income. Many farmers face disguised unemployment and underemployment.

Impact of Climate Change

• Environmental Degradation: Climate change, water depletion, erratic rainfall, and soil degradation are further destabilizing the agricultural sector and threatening food security.

Challenges Faced by the Agricultural Sector

1. Limited Access to Credit and Finance

• Small Farmers: 86% of Indian farmers are small and marginal, struggling to access institutional credit, which limits their ability to invest in modern agricultural inputs.

2. Fragmented Landholdings

• Small Landholdings: The average landholding is 1.08 hectares, insufficient for large-scale, efficient farming, limiting the adoption of modern agricultural techniques.

3. Outdated Farming Practices

• Traditional Methods: Many farmers continue using traditional, inefficient farming practices due to limited access to modern technology.

4. Water Scarcity and Irrigation Issues

• Dependence on Monsoons: 60% of cropped area is rainfed, and only 52% of gross sown area is irrigated, exacerbating vulnerability to droughts and erratic rainfall.

5. Soil Degradation and Erosion

• Degraded Land: 30% of India's agricultural land is affected by soil degradation, leading to lower productivity and reduced resilience to pests.

6. Inadequate Agricultural Infrastructure

• Post-Harvest Losses: Insufficient storage, cold chain, and rural infrastructure result in 15-20% post-harvest losses, further reducing farmers' income.

Government Schemes for Farmers' Welfare

• PM Kisan Samman Nidhi Yojana: Direct income support for farmers.
• PM Fasal Bima Yojana (PMFBY): Crop insurance scheme.
• PM Krishi Sinchai Yojana (PMKSY): Irrigation schemes to enhance water availability.
• e-NAM: National electronic market for better price realization.
• Agriculture Infrastructure Fund: Financial support for infrastructure development.
• Promotion of Farmer Producer Organizations (FPOs): Empowering farmers through collective marketing and production.

Recommendations for Addressing the Crisis

1. Loan Waivers and Debt Relief

• Debt Alleviation: Immediate measures to reduce the crushing debt burden through loan waivers, a key factor behind farmer suicides.

2. Legal Recognition of Minimum Support Price (MSP)

• MSP Protection: Granting legal backing to MSP to ensure farmers receive a fair price for their produce, reducing price volatility and income insecurity.

3. Promotion of Sustainable Farming

• Organic Farming: Encouraging organic farming and crop diversification to improve soil health and reduce dependency on a few staple crops.
• Climate-Resilient Agriculture: Adopting water-efficient practices, drought-resistant crops, and sustainable farming techniques.

4. Agricultural Marketing Reforms

• Market Efficiency: Improving the agricultural marketing system by establishing farmer-friendly markets and reducing intermediaries to ensure better price realization.

5. Rural Employment Generation

• Diversification: Creating non-agricultural employment opportunities in rural areas through skill development and promoting agro-based industries.

6. Climate Adaptation Measures

• Water Management: Enhancing water management systems and promoting rainwater harvesting.
• Resilience to Climate Change: Investing in climate-resilient infrastructure and farming technologies.

Implications of the Findings

Economic Impact

• Agricultural Decline: Continued neglect of the agricultural sector poses a risk to India's economy, potentially leading to long-term economic instability and increased rural-urban migration.

Food Security

• Threat to National Food Security: Declining agricultural productivity, exacerbated by climate change and inadequate reforms, threatens the country’s ability to meet food demands.

Social Stability

• Farmer Suicides and Unrest: The ongoing crisis, marked by widespread suicides and growing despair, risks social instability and unrest, particularly in rural regions.

Conclusion: Urgent Need for Reform

The committee’s report underscores the critical need for comprehensive reforms in India’s agricultural sector to alleviate the crisis. Immediate action is required to address the debt burden, improve incomes, and ensure sustainable agricultural practices. Legal reforms like MSP recognition and debt relief, along with investments in infrastructure and climate resilience, are key to securing a stable future for Indian agriculture.