Panel Recommends Reforms for Farmers’ Welfare

Context

A parliamentary standing committee on agriculture, chaired by Charanjit Singh Channi, has presented a comprehensive set of recommendations aimed at enhancing the welfare of farmers and farm laborers in India. These proposals include increasing budgetary allocations for agriculture, renaming the Ministry of Agriculture, and implementing policies to support sustainable farming practices.

Key Recommendations

• More and More Budgetary Allocations: The committee noticed, while it continues to explain how budgetary allocations have continued to decrease for the agriculture sector during the last few years, from 3.53 percent of the central plan outlay in 2021-22 to a measly 2.51 percent in 2025-26, urging the government to reverse this trend and earmark a precious chunk of budgetary resources into rural development and promoting agricultural productivity.
• Renaming the Ministry: The panel recommended renaming the “Department of Agriculture and Farmers Welfare” to “Department of Agriculture, Farmers and Farm Labourers Welfare.” This is the official recognition of farm workers’ vital importance to agriculture.
• Minimum Support Price (MSP) for Organic Produce: To promote sustainable farming practices and fair remuneration of organic farmers, the committee also recommended extending MSP to cover organic crops. However, it cautioned that such a measure should not interfere with the larger MSP reform based on the Swaminathan formula.
• Crop Residue Management: The panel proposed a direct payment of ₹100 per quintal of paddy to farmers as crop residue management assistance to control stubble burning. The formation of a market mechanism was recommended for crop residues in order to facilitate their use in bio fuel and other industries.
• Universal Crop Insurance: A universal crop insurance scheme was proposed by the committee to insulate small farmers from losses brought about by natural calamities or market fluctuations.
• Extension of PM-Kisan Benefits to Farm Workers: The panel has recommended extending PM-Kisan benefits to the farm labourers so that everyone in agriculture receives fair treatment in terms of support.
• Establishment of a National Commission: It, therefore, proposed the setting up of a National Commission on Minimum Living Wages for Farm Labourers to look into the wide disparities and enhance the quality of living.

Policy Reforms for Sustainable Agriculture

• Promoting Organic Farming: By providing MSP for organic crops, the committee aims to incentivize farmers to adopt sustainable practices, despite initial challenges like lower yields.
• Crop Residue Utilization: Creating a market for crop residues can help reduce environmental damage from stubble burning and provide additional income streams for farmers.
• Enhancing Market Access: The panel suggested transforming Primary Agricultural Credit Societies (PACS) into “Village Supermarkets” under the PM Kisan Samriddhi Kendras initiative to improve market access for farmers.
• Market Intervention Scheme Expansion: Increasing the procurement limit under the Market Intervention Scheme from 25% to 50% of total estimated production could provide better price support to more farmers.

Implementation Challenges and Opportunities

Implementing these recommendations will require coordinated efforts between the Union and State governments, financial institutions, and rural governance bodies. Effective monitoring and evaluation systems are necessary to ensure that budget allocations meet their intended objectives.

Conclusion

The parliamentary panel’s recommendations reflect a comprehensive approach to addressing the challenges faced by the agricultural sector. By focusing on inclusivity, sustainability, and economic security, these proposals aim to create a more equitable and productive agricultural landscape in India. However, successful implementation will depend on the government’s ability to allocate sufficient resources and ensure policy coherence across different levels of governance.

Source: The Hindu

UPSC Prelims Practice Question

Q. Consider the following recommendations made by a Parliamentary Standing Committee on Agriculture:

1. Increasing budgetary allocations for agriculture
2. Renaming the Ministry of Agriculture
3. Implementing policies for sustainable farming

Which of the above recommendations aim to enhance farmers’ welfare?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3

Answer: (d)

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