How to Increase Farmer's Income? Five strategies to increase farmers' income.


By Priya Singh

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Updated On: 20-Feb-2023 12:42 PM


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How to Increase Farmer Income? Various interventions and schemes launched for the benefit of farmers are listed below.

How to Increase Farmer Income? Various interventions and schemes launched for the benefit of farmers are listed below.

The Prime Minister's goal of increasing farmer income deserves serious consideration. This admirable goal has the potential to not only improve the well-being of our farmers but also to promote agri-based manufacturing growth in rural India.

Doubling Farmers' Income has been a hot topic for quite some time. Farmers, who play an important part in the Indian economy, are mainly unaware of the Central Government's plan to double farmer income by the fiscal year 2022-23.

Millions of smallholder farmers are impoverished and unable to meet their basic necessities. Small - scale farmers' earnings and competitiveness must increase if they are to earn and maintain a good standard of life, reinvest in their farms, and continue to deliver a sustainable crop to multinational corporations.

A lot has been written recently regarding farm loan waivers. According to studies, loan forgiveness programs make little economic sense. However, if current political discourse is any guide, loan forgiveness is the flavor of the month. What else can we do to boost farm revenue if not farm loan waivers?

However, it is also required to have a discussion about How to Increase Farmer Income.

How to Increase Farmer Income?

To achieve the goal of increasing farmer income, extreme steps are required. To double farmers' income, the agriculture industry can use the following measures:

Five strategies to increase farmers' income

Farmers must implement these methods in order to increase their income.

Infrastructure development initiatives-

Despite the fact that India is one of the leading producers of several agricultural fresh foods, about 20% of India's fresh product is wasted due to a lack of suitable cold storage facilities. Increasing agricultural income through reducing wastage of perishable fruits, vegetables, and milk, which fetch higher market prices than mainstay crops. The majority of small farmers do not plant perishable crops. Small and marginal farmers rarely plant high-value crops due to a lack of storage facilities. Government can build warehouses or cold storage.

Also Read; Top 5 Fintech Companies That Offer Easy Loans To Farmers

Upgraded technology

Technology has become an essential component of the agricultural economy, allowing farmers to become more efficient and productive. Farmers can produce more crops in the same amount of time by adopting technology, which can help them boost their income. Furthermore, technology can assist farmers in saving money by lowering the time and resources required to grow crops.

Farmers can use technology to interact with other farmers and agricultural specialists, sharing knowledge and ideas. Farmers can minimize labour costs thanks to technological advancements. Farmers can use technology to sell their crops directly to consumers, cutting out the middleman and improving their revenues.

In addition to increasing efficiency, technology can assist farmers in improving crop quality. Farmers, for example, can more precisely target the needs of their crops by employing sensors and precision agricultural techniques, resulting in healthier and higher-yielding plants. Overall, technology can assist farmers in a variety of ways, ranging from increased efficiency to improved crop quality.

Awareness of farmers' Institutional structures

Farmers are not aware of organizations and schemes which help them to improve their earnings. In 2015, the Nationwide Centre for Financial Education (NCFE) conducted India's first-ever national benchmark survey of financial literacy and financial inclusion, gathering data from 76,762 respondents. According to the poll, farmers are unaware of basic financial goods: less than 1.67% of farmers are aware of crop insurance products.

Crop rotation

Crop rotation schemes can help farmers save money on fertilizer, enrich the soil, and increase take-home pay. Planting soybeans, for example, when corn is not in season enhances nitrogen concentration in the soil. According to the Environmental Protection Agency, these measures can also help eliminate hazardous insects and slow the growth of harmful microorganisms. According to the EPA, Integrated Pest Management can assist a farmer operating on a small or large scale in bringing a greater percentage of vegetables and other food products to market. The higher yield, paired with healthier soil, allows a farmer to keep a larger portion of his revenue as profit.

Selling to Local Companies

Selling to local community markets and grocery stores can assist a farmer to reduce product shipping expenses while increasing profit margins. A farmer selling produce or meat to local grocery stores and markets does not have to travel as far to reach delivery destinations, lowering fuel costs and putting less strain on delivery equipment. A farmer might also save money by having shorter delivery routes for drivers. Because an increasing number of people are looking to lessen their carbon impact by purchasing locally grown products, local grocery stores prize produce and meats from local farms.

Schemes launched by the Government for Farmers' benefit

Also Read: Pradhan Mantri Fasal Bima Yojana

Various interventions and schemes launched for the benefit of farmers are listed below.

  1. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
  2. Pradhan Mantri Kisan MaanDhan Yojana (PM-KMY)
  3. Pradhan Mantri Fasal Bima Yojana (PMFBY)
  4. The increase in the Minimum Support Price (MSPs) for all Kharif & Rabi crops
  5. Soil Health Cards
  6. “Per drop more crop” initiative under which drip/sprinkler irrigation is being encouraged
  7. “Paramparagat Krishi Vikas Yojana (PKVY)” for promoting organic farming.
  8. Launch of an e-NAM initiative to provide farmers with an electronic transparent and competitive online trading platform.
  9. Under “Har Medh Par Ped”, agroforestry is being promoted for additional income.
  10. ‘Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PMAASHA)’.
  11. Beekeeping has been promoted under Mission for Integrated Development of Horticulture (MIDH)
  12. To ensure appropriate credit flow, the government sets an annual target for credit flow to agriculture. The agriculture credit flow target has been set at Rs. 13.50 lakh crore for FY2019-20 and Rs.15.00 lakh crore for FY2020-21.
  13. Extending the reach of institutional credit to more farmers is a priority for the government, and to that end, the government offers a 2% interest subsidy on short-term crop loans up to Rs.3.00 lakh. Farmers can already obtain a loan at a 4% annual interest rate with prompt payback.
  14. The government has made the Kisan Credit Card (KCC) available to farmers who engage in animal husbandry and fisheries-related businesses.