The Standing Committee of Parliament on Agriculture, has suggested renaming the Union Agriculture Ministry to recognize the contribution of farm laborers. 

• The report recommends key policy changes, including comprehensive crop insurance for small farmers and a higher Minimum Support Price (MSP) for organic crops.

Concerns Raised by the Parliamentary Panel

• Exclusion of Farm Labourers from PM-Kisan Benefits: The PM-Kisan scheme currently benefits only landholding farmers, leaving out millions of farm labourers who do not own land.
• Declining Budget Allocation for Agriculture: The report highlighted a steady decline in the Agriculture Ministry’s budget as a proportion of the total Central outlay over the years:
  • 2021-22: 3.53%
  • 2022-23: 3.14%
  • 2023-24: 2.57%
  • 2024-25: 2.54%
  • 2025-26: 2.51%
• Inadequate Measures to Address Stubble Burning: Stubble burning remains a major environmental and health issue, but existing measures have not been effective.
• Lack of MSP for Organic Farming: Farmers are hesitant to switch to organic farming due to low initial yields and uncertain market prices.
• Wage Disparities and Poor Social Security for Farm Labourers: The committee highlighted that farm labourers earn low wages and lack social security benefits.

Key Recommendations of the Panel

• Renaming the Agriculture Ministry: The committee suggested renaming the Ministry of Agriculture and Farmers Welfare to the Ministry of Agriculture, Farmers & Farm Labourers Welfare.
• Expansion of PM-Kisan Scheme to Farm Labourers: Currently, the PM-Kisan scheme provides ₹6,000 per year to landholding farmers. 
  • The panel noted that 55% of India’s population is engaged in farming, but many are farm labourers who do not own land.
• Budget Allocation for Agriculture: The panel highlighted a decline in budgetary allocation for agriculture from 2020-21 to 2025-26.
  • It recommended increasing funds and ensuring their timely and effective utilization.
• Comprehensive Crop Insurance for Small Farmers: Introduce a free and compulsory crop insurance scheme for farmers with land holdings up to two hectares.
  • This would provide a financial safety net, reduce debt dependency, and encourage investment in better farming practices.
• Addressing the Issue of Stubble Burning: Farmers should receive ₹100 per quintal of paddy as compensation for collecting and managing stubble.
  • This amount should be in addition to the Minimum Support Price (MSP) and transferred directly to farmers.
• Market for crop residue: The committee also proposed developing a market for crop residue for biofuels like BioCNG and ethanol and as fuel for brick kilns, furnaces, and thermal plants.
• Minimum Support Price (MSP) for Organic Crops: The panel supported a minimum support price (MSP) for all organic crops, in addition to MSP on traditional crops.
  • This move would encourage farmers to shift to organic farming, despite initial lower yields.
• National Commission for Minimum Living Wages for Farm Labourers: The panel proposed creating a National Commission for Minimum Living Wages for Farm Labourers to:
  • Set fair minimum wages for farm workers.
  • Address wage disparities and ensure equitable pay.
  • Improve social security benefits, including health and pension schemes.
  • Enhance working conditions and provide job security.

Challenges faced by Farm Labourers in India

• Low Wages & Income Instability: Many laborers receive low wages, often below minimum wage, and face irregular employment due to the seasonal nature of farming.
  • On an average, a male agriculture worker in rural India earned ₹345.7 per day in FY23, which is below what is needed to provide basic needs of a family.
• Lack of Job Security: Most farm laborers work on a contract or daily wage basis, making their livelihoods highly uncertain.
  • Agricultural work is seasonal and many laborers find employment for only 100-150 days annually.
• Poor Working Conditions: They often work long hours in extreme weather conditions without proper safety gear or healthcare facilities.
  • As per NCRB One farmer/farm labourer dies by suicide every hour in India.
• Landlessness & Dependency: Many laborers do not own land and depend on landlords for work, leading to exploitation.
  • Approximately 86% of farmers in India are small and marginal farmers owning less than 2 hectares of land, while about 144 million people work as agricultural laborers who own no land.
• Limited Access to Education & Healthcare: Many laborers lack access to basic education and medical facilities, affecting their overall well-being.
  • Children of farm workers are most vulnerable to dropouts from school.
• Lack of Social Security: Most farm laborers do not have access to benefits like pensions, insurance, or provident funds, making their old age financially insecure.
  • Pradhan Mantri Shram Yogi Maandhan (PMSYM) scheme, aimed at providing pensions to unorganized workers, has seen limited enrollment among farm laborers due to lack of awareness and accessibility.

Way Forward

• Fair Wages & Income Stability: Strict enforcement of minimum wage laws and inclusion of farm laborers in income support schemes like PM-KISAN can help reduce financial insecurity.
  • The Fair Labor Standards Act (FLSA) in the U.S. mandates a federal minimum wage for farmworkers, helping maintain income stability.
• Job Security & Employment Generation: Expanding MGNREGA to provide year-round employment and promoting contract farming with legal protections can ensure stable livelihoods.
  • The expansion of MGNREGA in drought-prone states like Rajasthan has helped laborers find year-round employment.
• Better Working Conditions: Enforcing labor laws for safety, providing health checkups and accident insurance, and encouraging mechanization can improve labor conditions.
  • The European Union’s Farm Safety Program mandates protective equipment and workplace safety audits for agricultural workers.
• Addressing Landlessness & Dependency: Implementing land leasing policies, strengthening Farmer Producer Organizations (FPOs), and promoting cooperative farming models can empower farm laborers.
  • The Bhoodan Movement in India redistributed land to landless laborers, though more structural reforms are needed today.
• Access to Education & Healthcare: Strengthening mid-day meal schemes, expanding rural healthcare facilities, and introducing vocational training can enhance long-term well-being.
  • The Kanyashree Scheme in West Bengal has reduced school dropouts among farm laborers’ children.
• Skill Development & Alternative Livelihoods: Providing training in modern farming, agro-processing, and small businesses can help farm laborers diversify their income sources.
  • Maharashtra’s Agri-Entrepreneurship Training Program has helped farm laborers start small businesses.
• Government Policies & Awareness Programs – Strengthening labor unions, advocacy groups, and public-private partnerships can enhance awareness and improve farm labor conditions.
  • Odisha’s Mo Sarkar Initiative promotes direct engagement with farm laborers to improve policy implementation.

Conclusion

The committee’s recommendations aim to strengthen farmer and farm laborer welfare, increase financial security, and promote sustainable farming. If implemented, these measures could bring long-term improvements in India’s agricultural sector.

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