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Agrarian Crisis India, Study Guides, Projects, Research of Law

Stats highlighting agrarian crisis

Typology: Study Guides, Projects, Research

2019/2020

Uploaded on 08/15/2021

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Agrarian Crisis
Introduction
India has been witnessing increasing protests from farmers across the country over the past few
years. Poignant images of farmers dumping vegetables on roads and clutching dead rats in their
mouths have long indicated their plight amid the looming agrarian crisis. Poor policies, low
agricultural prices and income, dependence on the weather, and low productivity due to
inadequate technology and lack of mechanization are some of the factors which constitute this
crisis that has driven farmers to commit suicides and to give up farming altogether. Statistics
elucidate the chronic distress of the farmers and paint a gloomy picture of the future of the
agrarian sector.
Static growth and low mechanization
The recent Economic Survey 2019-20 shows that the average annual growth rate in agriculture
has been stagnant over the past six years, with the growth of Gross Value Added (GVA) of
agriculture and its allied sectors seeing a fluctuating trend. From -0.2% in 2014-15 and 6.3% in
2016-17, it declined to 2.9% in 2018-19, and is estimated to be 2.8% in 2019-20. This latest
estimate is slightly below the average annual growth rate of 2.9 between 2014-15 and 2018-19.
Furthermore, the share of agriculture and allied sectors in the GVA of the nation fell from 18.2%
in 2014-15 to 16.1% in 2018-19. However, the government attributed the decline to better
performance by the non-agricultural sectors in the survey, which also underscored the
importance of agriculture mechanization for transforming Indian farming from subsistence to
commercial farming. At present, the overall farm mechanization in India is around 40%, while it
is 59.5% and 75% in China and Brazil respectively.1
Suicides
As per a report by the National Crime Records Bureau (NCRB), titled Accidental Deaths and
Suicides in India, 5,957 farmers and 4,354 labourers ended their lives in 2019, making a
combined total of 10,281 suicides from the agricultural sector and amounting to 7.4 percent of
the total number of suicides in India. Such high numbers were reported even as Uttarakhand,
1 Chap. 7, Agriculture and Food Management, Economic Survey 2019-20.
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Agrarian Crisis Introduction India has been witnessing increasing protests from farmers across the country over the past few years. Poignant images of farmers dumping vegetables on roads and clutching dead rats in their mouths have long indicated their plight amid the looming agrarian crisis. Poor policies, low agricultural prices and income, dependence on the weather, and low productivity due to inadequate technology and lack of mechanization are some of the factors which constitute this crisis that has driven farmers to commit suicides and to give up farming altogether. Statistics elucidate the chronic distress of the farmers and paint a gloomy picture of the future of the agrarian sector. Static growth and low mechanization The recent Economic Survey 2019-20 shows that the average annual growth rate in agriculture has been stagnant over the past six years, with the growth of Gross Value Added (GVA) of agriculture and its allied sectors seeing a fluctuating trend. From -0.2% in 2014-15 and 6.3% in 2016-17, it declined to 2.9% in 2018-19, and is estimated to be 2.8% in 2019-20. This latest estimate is slightly below the average annual growth rate of 2.9 between 2014-15 and 2018-19. Furthermore, the share of agriculture and allied sectors in the GVA of the nation fell from 18.2% in 2014-15 to 16.1% in 2018-19. However, the government attributed the decline to better performance by the non-agricultural sectors in the survey, which also underscored the importance of agriculture mechanization for transforming Indian farming from subsistence to commercial farming. At present, the overall farm mechanization in India is around 40%, while it is 59.5% and 75% in China and Brazil respectively.^1 Suicides As per a report by the National Crime Records Bureau (NCRB), titled Accidental Deaths and Suicides in India, 5,957 farmers and 4,354 labourers ended their lives in 2019, making a combined total of 10,281 suicides from the agricultural sector and amounting to 7.4 percent of the total number of suicides in India. Such high numbers were reported even as Uttarakhand, (^1) Chap. 7, Agriculture and Food Management, Economic Survey 2019-20.

Odisha, Delhi, Bihar, West Bengal, Manipur, Chandigarh, Daman and Diu, Lakshadweep, and Puducherry claimed to have had no suicides by cultivators and labourers during the entire year. The figures were similar, and just as grim, in 2018 which saw 10,357 suicides in the farming sector, with many states and union territories reporting zero suicides. Holdings and operated area The latest Agriculture Census, conducted by the Department of Agriculture, Co-Operation & Farmers Welfare every five years since 1970, reveals that the average size of operational holdings has been on a constant decline, making it difficult to achieve economies of scale and causing farmers to have little bargaining power on account of the low marketable surplus. The average farm holding of 2.28 hectares in 1970, which fell down to 1.15 hectares in 2010, has shrunk to just 1.08 ha in 2015-16 as per the census. Now, small and marginal land holdings, having less than two hectares of land, make up more than 86% of the total holdings in the country. However, these small and marginal farmers own 46.94% of the land under cultivation compared to the 43.99% of crop area belonging to the semi- medium and medium farmers, who hold 2-10 hectares of land and constitute a mere 13.2% of the farmers in India. Along with this inequitable distribution of holdings, the tenth agriculture census also highlighted that the total area under farming has gone down from 159.6 million hectares in 2010-11 to 157.82 million hectares in 2015-16. Income and debt The National Bank for Agriculture and Rural Development (NABARD) released the first All India Rural Financial Inclusion Survey (NAFIS) in 2018. Data from this survey revealed that Indian farmers are battling not only meager income and increasing debt, but also paltry savings and lack of insurance. A staggering 52.5% of all agricultural households in India were indebted as of 2016-17, having an average outstanding debt of Rs. 1.04 lakh.^2 The average monthly income of agricultural households was found to be Rs. 8,931, 35% of which was received from cultivation. (^2) Pg. 111, NAFIS, NABARD, 2018.