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While farmer incomes may be rising, expenses are outpacing income growth, leading agricultural families to borrow more, the Standing Committee on Agriculture, Animal Husbandry and Food Processing, has observed in its latest report.
A recent survey on rural financial inclusion for 2022-23 by NABARD had stated that the average monthly income of households saw a substantial rise of 57.6 per cent over a five-year period, increasing from Rs 8,059 in 2016-17 to Rs 12,698 in 2021-22, an increase of 57.6 per cent.
But the average monthly expenditure surged even more sharply — from Rs 6,646 to Rs 11,262 (an increase of 69.4 per cent) over the same period, creating an imbalance.
Despite the rise in incomes, the percentage of rural families taking loans has risen from 47.4 per cent to 52 per cent between 2016-17 and 2021-22. This points to a heightened financial pressure on agricultural households and reflects a concerning trend in rural financial health.
“The committee, therefore, feels that the present situation necessitates careful monitoring and targeted interventions to ensure that farmers can manage their debts sustainably while continuing to invest in their agricultural activities and the department should do everything possible to ensure that farmers don’t get entrapped in vicious cycle of insurmountable debts and the schemes run for welfare of farmers have a tangible impact on the ground,” it said.
The parliamentary panel also recommended renaming the ‘Department of Agriculture and Farmers Welfare’ to Department of Agriculture, Farmers & Farm Labourers Welfare’. It said this will bring a broader focus on farm labourers.
“Farm labourers are indispensable to agriculture, significantly impacting food production, economic stability, and community welfare,” it said.
The renaming branding would assist to enhance the scope of initiatives and policies directed towards improving the livelihoods and welfare of both farmers and farm labourers, it added.
The name change would be vital to a larger effort to streamline agricultural governance and address the diverse needs of those working in agriculture, according to the committee.
It also suggested establishing a ‘National Commission for Minimum Living Wages’ for farm labourers “at the earliest to provide long due rights to farm labourers”.