Do it yourself

Continuing from yesterday (see Farm sector economics in India - 3 ) Yesterday, I suggested 10 illustrative farm level reforms that need to be implemented "urgently, vigorously, simultaneously", along with the necessary policy level and social level reforms to have a positive structural shift in the conditions of the farmers in India. It is critical for ensuring sustainable higher economic growth and realization of the objective of self reliance. Policy level reforms There was this feudal lord, who had enslaved a number of peasants on different pretexts. He would make them toil hard the whole day and give two inadequate meals to survive. Occasionally, on festivals, birthdays of his children, his marriage anniversary, and death anniversary of his parents, he would treat them with a good meal and sweets. Once in 3-4yrs, during winters, he would give them new blankets so that they do not die of cold. In return, the bonded peasants were expected to hai...

Continuing from yesterday ( see Farm sector economics in India - 2 ) I have said this earlier also, and I do mind reiterating. To bring any meaningful improvement in the fragile condition of India's farming community, a comprehensive rural development effort is needed. Any piecemeal solution like occasional loan waiver shall have almost no sustainable impact. The traditional farmer welfare measures like periodic hikes in support prices for certain crops, farm input subsidies, interest rate subvention have not yielded the desired results. In my view, a sustainable improvement in Indian farmers' conditions is possible only under a comprehensive rural development mission. The mission should address the problem with structural reforms at three levels, viz., 1. Farm Level; 2. Policy Level and 3. Social Level. All reforms must be pursued "urgently, vigorously, simultaneously" and in a fully integrated fashion, for having a meaningfully sustainable impact....

Continuing from last week (See Farm sector economics in India ) The issue of laborers migrating from large cities and industrially developed towns to villages & towns of industrially backward UP, Bihar, Jharkhand, Chhattisgarh, etc has caught everyone's attention in past few weeks. This migration is being widely seen as a fall out of COVID-19 induced lockdown of socio-economic activities. Indubitably, the lockdown has prompted many workers to wind up their household and move back to their home towns. But it would be a grave mistake to assume that lockdown is the only reason for the migration. The rate of unemployment amongst migrant and other workers was rising consistently since past few years. Demonetization and GST dealt a major blow to the jobs in unorganized and MSME sector. Besides, these workers were faced with the double whammy of stagnant to declining wages and rising cost of living. To highlight my point, I would cite my favorite example again. ...

Continuing from yesterday ( see here ) Before planning for any reform in the India's form sector, it is critical to understand the key characteristics of the India's farm sector. To be successful, any strategy, plan, policies and programs must be in congruence with such characteristics. Unfortunately, most of the policy initiatives and programs implemented in past couple of decades have not been congruent with the characteristics of the farm sector. The following are some of the typical characteristics of the India's farm sector which have been hindering the growth and profitability of the sector and large proportion of population associated with the farming and allied activities. Farm sector of India As per the 6th Economic Census (2014) and Agriculture Census of India (2017), and NSSO (2013) data the following are the broad contours of the farm sector of India: Non-farm activities 1.     There are about 3.5cr rural commercial (no...