Answer

Agricultural reforms in India have transitioned significantly, from the MSP regime of 1965, ensuring price stability, to addressing today’s complex challenges of market integration, welfare, and sustainability. Recent debates on MSP revamp and schemes like PM-KISAN reflect efforts to balance economics and welfare. However, promoting sustainable agriculture is pivotal for realizing Viksit Bharat 2047.

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Evolution of Agricultural Reforms in India (1965 to Present)

• Introduction of MSP Framework (1965): The MSP system was introduced to address food shortages by incentivizing wheat and rice production.
  For example: In 1966, India imported Mexican wheat varieties, ushering the Green Revolution, which relied on assured MSP for wheat and rice.
• Expansion of MSP Basket: Over time, political pressures led to an expansion of MSP to cover more crops, causing regional imbalances.
  For example: Punjab and Haryana focus excessively on rice due to MSP and free power, leading to groundwater depletion and ecological damage.
• Open-Ended Procurement: The system evolved into open-ended procurement, particularly for wheat and rice, creating inefficiencies and excess stocks.
  For example: The Food Corporation of India holds rice stocks almost three times the buffer norms, leading to wastage and storage issues.
• Subsidies on Inputs: Subsidies on power, fertilisers, and irrigation were introduced, reducing costs for farmers but causing soil degradation and environmental harm.
  For example: Free electricity for tube wells in Punjab has led to alarming depletion of groundwater levels.
• Shift Towards Digitalisation: Recent reforms emphasize digitalisation to improve efficiency, like direct cash transfers and digital records of beneficiaries.
  For example: PM Kisan Samman Nidhi provides direct income support to farmers, eliminating middlemen and ensuring targeted delivery of benefits.

Balancing Market Economics with Welfare Measures for Viksit Bharat 2047

• Freeing Up Pricing of Agricultural Products: Allowing market forces to determine prices can incentivize crop diversification and efficient production.
  For example: Promoting futures markets enables farmers to plan based on expected prices, reducing reliance on MSP-driven cropping patterns.
• Targeted Direct Cash Transfers: Replace universal subsidies with targeted cash transfers to ensure support reaches the most vulnerable farmers and consumers.
  For example: Direct Benefit Transfers (DBT) in fertiliser subsidies saved USD 40 billion in 2024 by reducing leakages.
• Per Hectare Subsidy Model: Provide input subsidies based on landholding size rather than universal benefits, ensuring fairer distribution of resources.
  For example: Telangana’s Rythu Bandhu scheme provides ₹10,000 per acre annually to farmers for investment in agriculture.
• Investments in Rural Infrastructure: Strengthen roads, markets, irrigation, and value chains to reduce wastage and improve farm-to-market linkages.
  For example: The Pradhan Mantri Gram Sadak Yojana improved connectivity, reducing post-harvest losses and improving farmers’ income.
• Promoting Sustainable Agriculture: Encourage eco-friendly practices like organic farming and crop diversification to address environmental concerns.
  For example: The Paramparagat Krishi Vikas Yojana (PKVY) supports organic farming and reduces chemical fertiliser usage.

Balancing Market Economics, Environmental Concerns, and Sustainable Agriculture

• Promote Crop Diversification for Sustainability: Encourage farmers to diversify from water-intensive crops like rice and wheat to pulses, oilseeds, and millets, reducing groundwater depletion and improving soil health.
  For example: The Odisha Millet Mission incentivizes millet cultivation, enhancing income and soil quality, while reducing water-intensive paddy cultivation.
• Introduce Market-Linked Pricing Mechanisms: Replace MSP with price deficiency payment schemes, ensuring farmers receive fair prices while discouraging overproduction of select crops.
  For example: The Bhavantar Bhugtan Yojana in Madhya Pradesh compensates farmers for market price deficits, ensuring income stability without distorting market dynamics.
• Adopt Sustainable Input Usage: Rationalize subsidies for fertilisers and power to encourage the adoption of eco-friendly practices like drip irrigation and organic farming.
  For example: The PM-KUSUM scheme promotes solar-powered irrigation pumps, reducing dependence on subsidized electricity and lowering groundwater exploitation.
• Leverage Technology for Precision Agriculture: Use AI and IoT to provide farmers with real-time data on soil health, crop choice, and water usage, optimizing resources sustainably.
  For example: Tamil Nadu’s use of drones for pesticide application minimizes waste, ensuring efficiency and environmental safety.
• Strengthen Agri-Value Chains: Build efficient value chains and cold storage facilities to reduce post-harvest losses and ensure fair pricing for perishable produce.
  For example: Operation Greens aims to stabilize prices of tomatoes, onions, and potatoes by creating robust storage and supply chains.

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Suggested Policy Measures

• Direct Benefit Transfers for Targeted Subsidies: Replace input subsidies with direct benefit transfers to farmers, ensuring fair distribution and reducing wastage of resources.
  For example: The DBT in fertilizer distribution prevents diversion and ensures subsidies reach deserving farmers efficiently.
• Develop Land Lease Markets: Open regulated land leasing to small farmers and sharecroppers to encourage investment in productivity-enhancing practices.
  For example: Andhra Pradesh’s Land Lease Policy provides security to tenant farmers, enabling access to institutional credit and benefits.
• Invest in Agri-Infrastructure: Increase public expenditure on rural roads, irrigation systems, and storage facilities to improve market access and reduce wastage.
  For example: The Pradhan Mantri Krishi Sinchayee Yojana has enhanced irrigation coverage and water use efficiency in arid regions.
• Support Agro-Forestry and Climate-Resilient Crops: Promote agro-forestry and cultivation of drought-resistant varieties to tackle climate change and enhance productivity.
  For example: Punjab’s policy on agro-forestry incentivizes farmers to plant trees, improving biodiversity and reducing carbon footprints.
• Enhance Agricultural Research and Extension: Increase investment in agri-R&D to develop sustainable farming techniques and ensure knowledge dissemination through extension services.
  For example: The Indian Council of Agricultural Research (ICAR) promotes zero-tillage farming, which reduces costs and improves soil health.

A comprehensive approach to agricultural reforms, blending market-driven mechanisms with welfare measures, is vital for achieving Viksit Bharat 2047. By embracing technology-driven solutions, incentivizing sustainable practices, and fostering public-private partnerships, India can ensure an inclusive, resilient, and environmentally sustainable agricultural sector that empowers farmers and secures the nation’s future.

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