Lok Sabha Question No. 949 (UNSTARRED), answered on 2023-07-26
Subject: Sustainable Income Growth of Farmers
Ministry: PLANNING
Asked by: Sushil Kumar Singh, P. C. Mohan

## GOVERNMENT OF INDIA MINISTRY OF PLANNING

## LOK SABHA UNSTARRED QUESTION NO.949

## TO BE ANSWERED ON 26.07.2023

## SUSTAINABLE INCOME GROWTH OF FARMERS

## 949. SHRI SUSHIL KUMAR SINGH: SHRI P.C. MOHAN:

Will the Minister of PLANNING be pleased to state:

- (a) whether  the  NITI  Aayog  has  suggested  a  shift  in  agricultural  approach  for  sustainable income  growth  of  farmers  and  if  so,  the  details  thereof  along  with  the  strategies  from Ramesh  Chand's  and  Jaspal  Singh's  working  paper,  such  as  technology  advancement, private sector involvement, and efficiency promotion;
- (b) whether  the  paper  highlighted  a  need  for  a  regulatory  environment  and  investments  for knowledge intensive practices, new institutions and innovative producer end user links and if so, the details thereof along with the paper's suggestions onenhancing agricultural sector efficiency through cost-effective growth;
- (c) whether a State competition system to ease farming and farm business was proposed in the paper and if so, the details thereof along with the envisaged role of agriculture in achieving the  goals  of  Viksit  Bharat,  Amrit  Kaal  and  the  UN's  Sustainable  Development  Agenda 2030; and
- (d) whether  the  paper  offered  guidelines  on  Minimum  Support  Price  (MSP)  advocating procurement  and  price  deficiency  payment  and  linking  public  procurement  to  necessary quantity, price stability, and strategic stocks and if so, the details thereof?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS

## (RAO INDERJIT SINGH)

- (a): NITI Aayog has suggested shift in agricultural approach to achieve sustainable growth  in farmers  income  and  in  its  documents  like:   Strategy  for  India@75;  Three  Years  Action Agenda and  NITI Policy Paper on Doubling Farmers Income.

In  the  Working  Paper  titled  'From  Green  Revolution  to  Amrit  Kaal:   Lessons  and  Way Forward  for  Indian  Agriculture'  by  Ramesh  Chand  and  Jaspal  Singh, a  strategy  for agriculture for next 25 years i.e.  Amrit Kaal has been suggested and it has been said  that the  future strategy should be based on the  following factors:

- i. Future demand for agri-food.
- ii. Lessons from past experience, especially relating to drivers of growth.
- iii. Challenges facing the sector and those arising from the sector.
- iv. Emerging opportunities and changes in the operating environment of agriculture.
- v. Needs and goals set for the society and the nation.

The authors are of the view that agriculture has to play a key role in achieving the goal of Viksit  Bharat,  inclusive  development,  green  growth  and  gainful  employment  during  Amrit Kaal.  Accordingly,  a  roadmap  to  achieve  these  goals  has  been  suggested  including matter related  to  technology  and  R&D,  investments,  role  of  private  sector,  deployment  of  digital technology, regulatory environment, instruments for public intervention in factor and product market,  tenancy,  and  sustainable  agriculture  methods.  The  paper  concludes  that  the  future progress of agriculture requires action on several fronts involving Union  and  State Governments  and  a  well-coordinated  action and strategy between  the two  levels of government is needed to ensure that agriculture marches to the next stage of development, along with other sectors.

- (b):  The  paper  maintains  that  the  shift  towards  modernisation  of  agriculture  will  involve  the introduction  and  promotion  of  knowledge  and  skill  intensive  practices  within  agriculture, private  and  corporate  sector  investments  in  the  agriculture  value  chain,  new  institutions  of producers,  integrated  food  system-based  mechanisms,  and  new  types  of  linkages  between producers and end users. These changes, in turn, require liberalisation of the agriculture sector in  the  form  of  providing  a  facilitating  regulatory  environment  and  responsible  public  and private investments in and for agriculture.

The authors conclude that India has done well in achieving growth targets but needs to do more when it comes to efficiency gains. The emphasis should shift from growth to efficient growth. This requires deployment of state-of-the-art technology in agriculture, smart farming and maximising the value of main and by-products.

- (c): The paper does not cover the  matter related to State competition system to ease farming and farm business. However, on the role of agriculture in  achieving the  goal of Amritkaal, the paper  asserts that while the non-farming  sector can give higher growth than agriculture, the latter  is  important for inclusive growth, employment generation, renewable energy resource and sustainability which are an integral part of the goal to become Viksit Bharat. Further, on the United Nations' Sustainable Development Agenda 2030, it has been said that it cannot be achieved without paying attention to agriculture, as 11 out of the 17 Sustainable Development Goals (SDGs) are directly linked to agriculture. It is stated that the two biggest challenges

facing  the  planet  are  climate  change  and  over  exploitation  and  degradation  of  natural resources. The type and methods of farming have a significant bearing on these.

- (d): On the issue of Minimum Support Price (MSP), the paper states that the system of MSP for farm  produce  is  essential  to  guard  against  poor  competitiveness  and  malpractices  in  agri markets. MSP also becomes important during periods of glut, even if markets are competitive. However, the system of MSP should not cause too much distortions in market signals and incentives.  The  paper  suggests  that  India  should  use  a  combination  of  two  instruments, namely  procurement  and  price deficiency payment, to pay MSP  to  farmers. Public procurement should be linked to the quantity needed for the public distribution system, price stability and strategic stocks. It suggests that MSP in mandated crops should be implemented.

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