Lok Sabha Question No. 2776 (UNSTARRED), answered on 2025-03-18
Subject: Farm Distress Index
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Sudheer Gupta, Shri Chavan Ravindra Vasantrao, Shri Dhairyasheel Sambhajirao Mane

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURAL RESEARCH & EDUCATION

## LOK SABHA

## UNSTARRED QUESTION NO. 2776

TO BE ANSWERED ON 18 TH  MARCH, 2025

## FARM DISTRESS INDEX

2776.  SHRI SUDHEER GUPTA: SHRI CHAVAN RAVINDRA VASANTRAO:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि और ककसान कल्याण मंत्री be pleased to state:

- (a) whether the Government has developed a Farm Distress Index to help farmers in the country;
- (b) if so, the details thereof and the key areas covered under the said index;
- (c) the aims and objectives of developing such an index;
- (d) the details of parameters on which the said index has been developed; and
- (e) the manner in which this index will be helpful in averting economic hardships of farmers which often leads to suicide by farmers in many parts of the country?

## ANSWER

## THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE कृ षि और ककसान कल्याण राज्य मंत्री (SHRI BHAGIRATH CHOUDHARY)

(a) & (b): Systemic assessment of Farmers' Distress Index (FDI) is not available for the whole country. However, a pilot study 'Agrarian Distress and PM Fasal Bima Yojana: An Analysis of Rainfed Agriculture' was conducted to help farmers of Telangana and Andhra Pradesh during 2020-21 and 2021-22.  FDI covers multiple causes of distress ranging from climate variability to price volatility and the low risk-bearing ability of farmers etc.

(c) & (d): The Multidimensional FDI was studied at sub-district level with an aim to develop an early warning system for farm distress. The main objective of FDI was to develop a userfriendly tool designed to forewarn different stakeholders and provide policy support about the severity of farmer distress based on seven key parameters viz., exposure to risk, adaptive capacity, sensitivity, mitigation and adaptation strategies, triggers, psychological factors and impacts  ( Annexure) .  It  enables  timely  preventive  action  by  identifying  area.  The  FDI  also proposes a scalable framework for implementation ensuring that government support reaches the most affected regions efficiently.

(e): The FDI is designed to develop a forewarning system to take preventive measures to identify  farmer  distress,  providing  alerts  three  months  in  advance.  FDI  can  be  used  as  a planning tool to address the causes of farmers' distress and also evolve measures to tackle those  causes.  It  targets  to  recommend  a  location-specific  distress  management  package based on various dimensions of the FDI. FDI can be used to categorize and prioritize action points by the government and the local community to reduce farmers' distress.

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## [Part (c) & (d) of Lok Sabha USQ No. 2776 dated 18 TH  MARCH, 2025]

## Explanation of indicators used in FDI

| Pillars           | Indicator-1                                     | Indicator-2                                                        | Indicator-3                                                   |
|-------------------|-------------------------------------------------|--------------------------------------------------------------------|---------------------------------------------------------------|
| Exposure          | Loss due to pest/diseases (%)                   | Loss due to floods/cyclones (%)                                    | Loss due to droughts (%)                                      |
| Adaptive capacity | Education of the head of household (years)      | Total owned land (acre)                                            | Leased-in land (acre)                                         |
| Sensitivity       | Irrigated area (% of total area)                | Indebtedness (Rs)                                                  | SC/ST community and number of children in household           |
| Adaptation        | Non-crop income (as %of total household income) | Number of government schemes household benefited (in current year) | Household savings (Rs.)                                       |
| Trigger           | Informal credit (Rs)                            | Pressure from repayment of loans (yes/no)                          | Lack of cash-in-hand to meet immediate farm expenses (yes/no) |
| Psychological     | Feeling of social isolation (yes/no)            | Unable to fulfil family obligations (yes/no)                       | Addicted to alcohol (yes/no)                                  |
| Impact            | Increased indebtedness (Yes/No)                 | More participation in public works (MGNREGA) (yes/no)              | Reduced food consumption (yes/no)                             |

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