Table of Contents
Improving the Agricultural System Can Support the Rural Economy of the Nation (69th BPSC)
“The ultimate goal of farming is not the growing of crops, but the cultivation and perfection of human beings.” – Masanobu Fukuoka
Agriculture is the backbone of the rural economy, playing a crucial role in shaping the livelihood of millions. Mahatma Gandhi emphasized the deep connection between agriculture and rural life, asserting that improving agricultural practices is essential for the overall development of villages. In India, agriculture is not merely an economic activity but a way of life that has been deeply embedded in the country’s culture for centuries. The sector contributes approximately 15% to the Gross National Product (GNP) and provides employment to nearly half of the nation’s workforce. As per estimates, about 70% of India’s population is directly or indirectly engaged in agriculture and allied activities, including horticulture, animal husbandry, fisheries, and agroforestry. Beyond ensuring food security, agriculture also supplies essential raw materials to various industries.
Despite India’s rapid economic progress and its projected rise to a $5 trillion economy by 2027-28, the agricultural sector continues to struggle with numerous challenges. Millions of people dependent on farming still face financial hardships and struggle to meet even their basic needs. The worsening conditions in agriculture directly impact the rural economy, making it imperative to introduce sustainable reforms that strengthen this sector.
One of the biggest challenges Indian farmers face is the lack of access to institutional credit. Most small and marginal farmers struggle to secure sufficient capital for essential inputs such as seeds, fertilizers, and irrigation facilities. Due to financial constraints, they are often forced to rely on private moneylenders who charge exorbitant interest rates, pushing them further into debt. Additionally, agriculture in India is heavily dependent on monsoons, and many regions lack proper irrigation infrastructure. While well-off farmers can afford modern irrigation facilities, poorer farmers find it difficult to bear the high installation costs of equipment like tube wells. Climate change has further worsened the situation by making rainfall patterns more erratic and unpredictable.
Another major issue is the presence of middlemen in Agricultural Produce Market Committees (APMCs), which prevents farmers from receiving fair prices for their produce. Often, they are compelled to sell their crops at very low prices, affecting their income and overall economic stability. Other persistent problems include the lack of modern farming equipment, inadequate storage and transportation facilities, and declining soil fertility, all of which reduce agricultural productivity and weaken the rural economy.
Recognizing these issues, both central and state governments have implemented several initiatives to improve the agricultural sector. The National Commission on Farmers was established in 2004, leading to the formulation of the National Policy for Farmers, aimed at enhancing farmers’ incomes and improving their overall economic conditions. To ease access to credit and prevent exploitation by moneylenders, schemes like the Kisan Credit Card and PM-Kisan Samman Nidhi were introduced.
To ensure fair pricing and eliminate middlemen, the government launched the e-National Agricultural Market (e-NAM), an online trading platform that connects farmers with buyers across the country. Efforts have also been made to reduce agriculture’s dependence on monsoons by investing in irrigation infrastructure. Initiatives such as the Pradhan Mantri Fasal Bima Yojana (Crop Insurance Scheme), Pradhan Mantri Krishi Sinchayee Yojana (Irrigation Scheme), and Per Drop More Crop aim to promote sustainable farming practices and protect farmers from climate uncertainties.
To further enhance agricultural productivity, farmers are encouraged to adopt modern technologies, including genetically modified (GM) crops, nano-urea, and organic fertilizers. In response to climate change, the government is promoting the cultivation of drought-resistant coarse grains like jowar, bajra, and ragi, collectively referred to as Shri Anna (super grains). Additionally, the Soil Health Card scheme has been introduced to monitor and improve soil fertility, ensuring long-term sustainability in farming.
Strengthening the agricultural sector is essential for the growth of the rural economy. By addressing farmers’ financial struggles, improving infrastructure, and introducing modern techniques, agriculture can become a more stable and profitable occupation. When agriculture prospers, rural communities thrive, contributing significantly to the nation’s economic growth and stability.
“Agriculture is the most healthful, most useful, and most noble employment of man.” – George Washington
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