Doubling Farmers’ Income & Allied Activities
🟠 Topic 30: Doubling Farmers’ Income & Allied Activities
📌 Introduction
In 2016, the Government of India set an ambitious target to double farmers’ income by 2022. While the target year has passed, the goal itself continues to shape agricultural policies, focusing on productivity enhancement, cost reduction, value addition, diversification, and risk management.
Doubling income isn’t just about crop production; it involves leveraging allied sectors such as livestock, fisheries, horticulture, agro-processing, and rural non-farm employment.
🔹 Need for Doubling Farmers’ Income (DFI)
Key Challenges Faced by Farmers
1️⃣ Low Productivity – Indian farms operate at low yield levels compared to global standards.
2️⃣ High Input Costs – Fertilizers, seeds, electricity, and labour costs are rising.
3️⃣ Price Volatility – Markets are highly uncertain, especially for perishables.
4️⃣ Small Land Holdings – Fragmented lands limit economies of scale.
5️⃣ Climate Vulnerability – Unpredictable weather patterns increase crop losses.
Why Income Focus?
✔️ Historically, agricultural policy focused on production targets.
✔️ Shifting to income enhancement helps capture both higher prices and lower costs.
🔹 Strategy for Doubling Farmers’ Income
The Ashok Dalwai Committee provided a comprehensive roadmap, identifying 7 key sources of income growth.
1️⃣ Productivity Enhancement 🌾
- Adoption of High Yielding Varieties (HYV).
- Improved seed technology and soil health management.
- Efficient water use (micro-irrigation – PM Krishi Sinchai Yojana).
2️⃣ Cost Reduction ⚙️
- Subsidized fertilizers, seeds, and electricity.
- Custom Hiring Centres (CHCs) for shared machinery.
- Emphasis on organic farming to reduce input dependence.
3️⃣ Price Realization Improvement 💰
- Market reforms through e-NAM, Farmer Producer Organizations (FPOs).
- Post-harvest infrastructure for storage, processing, grading.
- MSP support and procurement for key crops.
4️⃣ Diversification to High-Value Crops 🍎
- Shift from cereals to horticulture, fruits, vegetables, spices.
- Floriculture and medicinal plants for export markets.
- Promoting millets (Shree Anna) for health and climate resilience.
5️⃣ Promotion of Allied Activities
| Sector | Key Focus |
|---|---|
| Dairy (White Revolution 2.0) | Breed improvement, cold chains, fodder security |
| Fisheries (Blue Revolution) | Inland fisheries, aquaculture, export support |
| Poultry (Pink Revolution) | Disease management, feed technology |
| Beekeeping (Sweet Revolution) | Value addition, branding, and exports |
| Sericulture | Cluster development, quality control |
6️⃣ Off-Farm Income Support 🏭
- Rural employment through MGNREGA.
- Promotion of Agri-tourism, handicrafts, food processing.
- Agro-entrepreneurship through PM Formalization of Micro Food Enterprises (PM FME).
7️⃣ Risk Management & Resilience 🌦️
- Crop Insurance under PMFBY.
- Climate-resilient technologies.
- Financial literacy and credit access (Kisan Credit Card).
🔹 Role of Technology in Doubling Farmers’ Income
| Technology | Application |
|---|---|
| Precision Farming | GPS-enabled tractors, drones for spraying |
| Soil Health Cards | Soil nutrient mapping and customized fertilizer advice |
| Weather Forecasting Apps | Real-time advisories for farmers |
| Agri-Startups | Market linkages, quality testing, price forecasting |
🔹 Role of Farmer Producer Organizations (FPOs)
📖 What are FPOs?
- FPOs are collectives of small farmers, legally registered to jointly carry out production, processing, and marketing activities.
Benefits
✔️ Collective bargaining for inputs.
✔️ Direct access to institutional buyers.
✔️ Reduction in transaction costs.
✔️ Facilitation of value addition and branding.
Target
- 10,000 new FPOs by 2027 under Central Sector Scheme for FPO Promotion.
🔹 Key Government Schemes Supporting DFI
| Scheme | Focus Area |
|---|---|
| PM-KISAN | Direct income support |
| PM Krishi Sinchai Yojana | Micro-irrigation & water efficiency |
| PM Formalization of Micro Food Enterprises (PM-FME) | Agro-processing & branding |
| e-NAM | Direct market access |
| Kisan Credit Card | Easy access to credit |
| National Livestock Mission | Breed improvement, fodder development |
🔹 Importance of Allied Activities
| Sector | Contribution to Farmers’ Income |
|---|---|
| Livestock | ~25% of agricultural GDP |
| Fisheries | Fastest-growing segment in rural economy |
| Horticulture | Higher profitability per acre than cereals |
| Beekeeping | Direct income + pollination benefits |
Case Study – Diversification in Punjab
- Punjab farmers are trapped in wheat-paddy monoculture.
- State promoting horticulture, dairy, agro-processing for income diversification.
- Success stories in kiwi, organic vegetables, and cooperative dairies emerging.
🔹 Challenges in Doubling Farmers’ Income
1️⃣ Price Fluctuations
- Farmers still vulnerable to market volatility despite MSP coverage being limited.
2️⃣ Climate Change Impact
- Rising temperatures, unpredictable rains reduce yields and increase crop loss risks.
3️⃣ Land Fragmentation
- Average landholding shrinking to less than 1 hectare, limiting mechanization potential.
4️⃣ Institutional Credit Gap
- Many small farmers depend on informal credit sources at high interest rates.
5️⃣ Poor Extension Services
- Limited agri-extension services to promote modern techniques, especially for women farmers.
🔹 Indicators to Track Progress
| Indicator | Target/Trend |
|---|---|
| Agricultural GDP Growth | >4% annually |
| Farmer Income Growth | Doubling (2016-2026) |
| Crop Diversification Index | Rising share of horticulture & allied sectors |
| Credit to Agriculture | ₹20 lakh crore+ (2023-24 target) |
| Coverage under Crop Insurance | 30% of cropped area |
📚 Practice MCQ
1️⃣ Consider the following statements regarding Doubling Farmers’ Income (DFI):
- It focuses only on increasing crop production.
- It includes promoting allied sectors like fisheries and livestock.
- It aims to reduce cost of production along with improving productivity.
Which of the above statements are correct?
✅ Options:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3
2️⃣ Which sector contributes the most to rural household income after crops?
✅ Options:
(a) Forestry
(b) Livestock
(c) Fisheries
(d) Beekeeping
3️⃣ Which scheme supports the creation of 10,000 FPOs?
✅ Options:
(a) PM Kisan
(b) PM Formalization of Micro Food Enterprises (PM-FME)
(c) Central Sector Scheme for FPO Promotion
(d) National Livestock Mission
