As per the most recent Scenario Evaluation Survey (SAS) of agricultural households carried out by the Nationwide Statistical Workplace (NSO), a median Indian farmer earned Rs 10,218 per 30 days in 2018-19 (July-June). Throughout states, the very best revenue was acquired by a farming family in Meghalaya (Rs 29,348) adopted by Punjab (Rs 26,701), Haryana (Rs 22,841), Arunachal Pradesh (19,225) and Jammu and Kashmir (Rs 18,918) whereas the bottom revenue ranges have been in West Bengal (Rs 6,762), Odisha (Rs 5,112) and Jharkhand (Rs 4,895). However this isn’t a good comparability as holding sizes differ extensively throughout states. The second one normalises these incomes of agri-households by their holding sizes, as within the SAS, Punjab’s rating on per hectare revenue falls from 2nd to eleventh and Haryana goes down from third to fifteenth (see determine). The states that will do nicely on this rating are Jammu and Kashmir, Kerala, Meghalaya and Arunachal Pradesh the place individuals earn their revenue from cultivating vegatables and fruits, spices, and livestock. These are excessive worth in nature, not linked to MSPs, and market and demand-driven. There’s a lesson right here for Punjab and Haryana farmers on augmenting their incomes on a per hectare foundation, and in addition doing farming extra sustainably.
The common landholding knowledge is collected by each the SAS and Agriculture Census (newest 2015-16) however there’s a large variation between the 2 knowledge sources, particularly for states like Punjab, Rajasthan, Haryana and Gujarat. This anomaly must be corrected. As per the SAS, the typical operated space per holding for Punjab is 1.44 ha (we have now used that within the determine), however the Census offers a a lot increased worth of three.62 ha of common operational holding. If we normalise incomes of agri-households utilizing Census values of common holding sizes, Punjab’s rank would go additional right down to twenty first (family month-to-month revenue Rs 7,376) out of 28 states. Even Bihar (family month-to-month revenue Rs 19,338) will do a lot better than Punjab on this standards — it’s going to rank fifth. This means that farmers in Punjab and Haryana are incomes increased incomes primarily as a result of the scale of their landholding is larger in comparison with their counterparts from different states.
How can farmers in Punjab and Haryana increase their incomes with extra sustainable agriculture? Everybody, from the highest policymaker to the farmer, in Punjab realises that rice cultivation is depleting the state’s water desk, emitting methane and different greenhouse gases that injury the setting and stubble burning is choking thousands and thousands. Punjab’s former Chief Minister Amarinder Singh had approached the Centre with an concept to create a fund of round Rs 25,000 crore to assist farmers swap from paddy to maize. We really feel that the Centre ought to give this concept a severe thought with the next modifications: One, the fund ought to be underneath a five-year plan to shift at the very least one million hectares of paddy space (out of a complete of three.1 million hectares of paddy space in Punjab) to maize. Two, the corpus ought to have equal contributions from the Centre and state. Three, since Punjab desires that farmers be given MSP for maize, an company, the Maize Company of Punjab (MCP), ought to be created to purchase maize from farmers at MSP. 4, this company ought to enter into contracts with ethanol firms, and far of this maize can be utilized to provide ethanol because the poultry and starch industries won’t be able to soak up this surplus in maize as soon as one million hectares of paddy space shifts to maize. Fifth, maize productiveness have to be as aggressive as that of paddy in Punjab and one of the best seeds ought to be used for that function. That is to make sure that ethanol from maize is produced in a globally aggressive method.
The GoI’s coverage for 20 per cent mixing of ethanol in petrol ought to come in useful for this function. Within the course of, Punjab will arrest its depleting water desk as maize wants lower than one-fifth the water that paddy does for irrigation. Additionally, Punjab will save a lot on the facility subsidy to agriculture, which was budgeted at Rs 8,275 crore within the FY2020-21 finances, as paddy irrigation consumes a lot of the facility subsidy. This saving subsidy ensuing from the swap from paddy to maize can be utilized to fund part of the state’s contribution to the Maize Company of Punjab. This might end in a win-win state of affairs for all — farmers, the Authorities of Punjab and the nation — as there can be lesser methane emissions and fewer stubble burning. Furthermore, ethanol can even cut back GHG emissions in vehicular air pollution.
Different components of the diversification technique should be alongside the traces of accelerating the world underneath vegatables and fruits, and a extra targeted coverage to construct environment friendly worth chains in not simply vegatables and fruits but in addition livestock and fisheries. They’re extra nutritious and the SAS knowledge reveals that their profitability is far increased in these enterprises than in crop cultivation, particularly cereals. The sector must be backed by correct processing, grading and packaging infrastructure to faucet its full potential. Can the Punjab authorities and the Centre come collectively on this necessary difficulty? Punjab was on the forefront of offering meals safety to the nation within the late Sixties and early Nineteen Seventies however at the moment, the Punjabi farmer is languishing in a low-level equilibrium lure of the rice-wheat cycle with the open-ended procurement system of the federal government. Their revenue on a per hectare foundation wants to extend extra sustainably, defending the state’s land, water and air from additional degradation, and producing extra nutritious meals. Punjab can then shine once more on the dietary safety entrance with sustainable and climate-resilient agriculture.
This column first appeared within the print version on October 25, 2021 underneath the title ‘Time to seed a transition’. Gulati is Infosys Chair Professor for Agriculture and Roy is Fellow, at ICRIER
