Disadvantages of Indian farmer
Exploitation by Middlemen & Unfair Market Practices**
Agricultural Markets are dominated by traders** who manipulate prices,
leaving farmers with minimal profits.
Lack of direct market access** forces farmers to sell at throwaway prices,
while consumers pay much higher rates.
Land Fragmentation & Declining Farm Sizes**
86% of Indian farmers are small or marginal** (owning less than 2 hectares),
making farming economically unviable.
Land holdings keep shrinking** due to inheritance divisions, reducing
productivity and income.
No Social Security or Pension for Farmers**
No health or accident insurance coverage for most farmers, leaving them
vulnerable.
High Input Costs vs. Low Profitability**
Fertilizer prices have risen by 200-300% in a decade**, but crop prices
haven’t kept pace.
Diesel & electricity costs** eat into profits, yet power subsidies are irregular.
No Minimum Wage for Agricultural Laborers**
Farm laborers (landless workers) earn just ₹200-300/day**, far below urban
wages.
No job security**—they suffer during droughts or crop failures.
Government Focus on Corporate Farming Over Small Farmers**
New farm laws (2020) favored agribusiness**, not small farmers, leading to
massive protests.
Contract farming often exploits farmers**—companies dictate terms, leaving
them with little bargaining power.
Poor Education & Skill Development for Farmers**
Most farmers lack access to modern agri-tech training**, keeping them
trapped in outdated methods.
No formal education on climate-resilient farming**, worsening crop losses.
No MSP for Fruits & Vegetables (Major Income Sources)**
MSP covers only grains (wheat, rice)**, but farmers growing vegetables,
fruits, or spices get no price guarantees.
- **Tomato, onion, potato (TOP) farmers frequently face price crashes**,
leading to distress sales.
Rising Farmer Protests & Distress Migration**
Massive protests (Delhi 2020-21, Maharashtra 2023)** prove systemic
neglect.
Thousands quit farming yearly**—India’s farmer population dropped by **9
million** between 2011-2021 (Census data).
Poor Implementation of Crop Insurance (PMFBY)**
Only 30% of farmers are covered** under crop insurance.
Claims are delayed or denied**, leaving farmers helpless after crop loss.
. Heavy Reliance on Informal Credit (Debt Trap)**
- **70% of farmers borrow from moneylenders** at 25-50% interest rates (vs.
7-9% bank loans).
- **Suicides due to debt** continue despite loan waivers.
No Political Will for Real Reform**
- **Agriculture budget is just 3-4% of GDP**, though farming employs **45%
of India’s workforce**.
Empty promises before elections** (e.g., doubling farmer income by 2022)
remain unfulfilled.
Exploitation by Middlemen & Unfair Market Practices**
Agricultural Markets are dominated by traders** who manipulate prices,
leaving farmers with minimal profits.
Lack of direct market access** forces farmers to sell at throwaway prices,
while consumers pay much higher rates.
Land Fragmentation & Declining Farm Sizes**
86% of Indian farmers are small or marginal** (owning less than 2 hectares),
making farming economically unviable.
Land holdings keep shrinking** due to inheritance divisions, reducing
productivity and income.
No Social Security or Pension for Farmers**
No health or accident insurance coverage for most farmers, leaving them
vulnerable.
High Input Costs vs. Low Profitability**
Fertilizer prices have risen by 200-300% in a decade**, but crop prices
haven’t kept pace.
Diesel & electricity costs** eat into profits, yet power subsidies are irregular.
No Minimum Wage for Agricultural Laborers**
Farm laborers (landless workers) earn just ₹200-300/day**, far below urban
wages.
No job security**—they suffer during droughts or crop failures.
Government Focus on Corporate Farming Over Small Farmers**
New farm laws (2020) favored agribusiness**, not small farmers, leading to
massive protests.
Contract farming often exploits farmers**—companies dictate terms, leaving
them with little bargaining power.
Poor Education & Skill Development for Farmers**
Most farmers lack access to modern agri-tech training**, keeping them
trapped in outdated methods.
No formal education on climate-resilient farming**, worsening crop losses.
No MSP for Fruits & Vegetables (Major Income Sources)**
MSP covers only grains (wheat, rice)**, but farmers growing vegetables,
fruits, or spices get no price guarantees.
Tomato, onion, potato (TOP) farmers frequently face price crashes**, leading
to distress sales.
Rising Farmer Protests & Distress Migration**
Massive protests (Delhi 2020-21, Maharashtra 2023) prove systemic neglect.
Thousands quit farming yearly**—India’s farmer population dropped by **9
million** between 2011-2021 (Census data).
Poor Implementation of Crop Insurance (PMFBY)**
Only 30% of farmers are covered** under crop insurance.
Claims are delayed or denied**, leaving farmers helpless after crop loss.
Heavy Reliance on Informal Credit (Debt Trap)**
70% of farmers borrow from moneylenders** at 25-50% interest rates (vs. 7-
9% bank loans).
Suicides due to debt continue despite loan waivers.
No Political Will for Real Reform**
Agriculture budget is just 3-4% of GDP, though farming employs **45% of
India’s workforce**.
Empty promises before elections** (e.g., doubling farmer income by 2022)
remain unfulfilled.
Farmer Suicides – A National Crisis
Debt burden, crop failures, and inability to repay loans have led to a tragic
rise in farmer suicides. States like Maharashtra, Telangana, and Punjab report
high suicide rates due to dependence on cash crops such as cotton and
sugarcane that are vulnerable to price crashes. Lack of access to institutional
credit forces farmers to rely on moneylenders charging exorbitant interest
rates.
Low Income and Economic Instability
Farmers earn very little due to low Minimum Support Prices, rising input costs
for seeds, fertilizers, and fuel, and middlemen exploitation. Market
fluctuations leave farmers at the mercy of traders, with no guaranteed fair
prices. Lack of alternative income sources traps rural households in a cycle
of poverty.
Climate Change and Unpredictable Weather
Erratic monsoons, droughts, and unseasonal rains frequently damage crops.
Groundwater depletion due to excessive irrigation worsens water scarcity.
Pest attacks and soil degradation caused by excessive chemical use reduce
yields over time.
Agriculture: India’s Lifeline
For thousands of years, farming has shaped India’s culture, traditions and
identity. Today, it continues to play a vital role in the nation’s wellbeing.
Food Security
Agriculture feeds 1.4 billion Indians while making the country a leading
global producer of rice, wheat and milk.
Livelihoods
The sector employs 45% of India’s workforce, serving as the foundation of
the rural economy.
Crisis Management
Farmers maintained uninterrupted food supply during the COVID-19
pandemic and various economic challenges.
Government Support
The PM-KISAN scheme provides ₹6,000 annually to farmers. The e-NAM
platform enables digital marketplace for fair pricing. Kisan Credit Cards
provide accessible loans to agricultural workers.
Challenges Ahead
The sector faces climate change threats, struggles with low farmer incomes,
and requires modern technological adoption.
Agriculture represents more than an economic activity. It serves as India’s
foundation, demanding both conservation and modernization for long-term
sustainability.
Declining role of agriculture in India’s economy
While agriculture has historically been a cornerstone of the Indian economy,
its relative contribution to the nation’s GDP has seen a significant decline
over the past few decades. This shift reflects a broader trend of economic
development where industrial and service sectors experience rapid growth,
leading to a smaller share for agriculture in the overall economy.
Here's a breakdown of the declining role of agriculture:
Shrinking Share of GDP: Agriculture’s share in India’s Gross Value Added
(GVA) has dropped significantly, from around 35% in 1990-91 to 15% in
2022-23.
Rapid Growth of Other Sectors: The accelerated expansion of the industrial
and service sectors, contributing higher value addition and attracting more
investment, has proportionally reduced agriculture’s share. This is not due to
a decline in agricultural GVA itself, but rather the rapid expansion of GVA in
other sectors.
Shift in Employment: While agriculture remains the largest employer,
providing livelihoods to over 45% of the workforce, it faces challenges
related to stagnant productivity growth and issues like fragmented
landholdings.
Comparison to Developed Nations: In comparison to developed countries like
the UK and USA, where agriculture contributes only about 3% to their total
GDP, India’s agriculture still plays a vital role, particularly in sustaining the
rural economy.
Government reports and documents from India provide insights into the
declining share of agriculture in the nation’s economy, although it remains a
crucial sector in terms of employment and food security.
Here’s a summary of key points based on government information:
1. Declining share in GVA
The share of agriculture and allied sectors in the country’s Gross Value
Added (GVA) has steadily declined over the past decades.
It reduced from 35% in 1990-91 to 15% in 2022-23.
[Link] contributing to the decline
Government sources identify several factors contributing to this trend:
Shift to Other Sectors: The rapid growth of the industrial and service sectors
naturally leads to a reduced share for agriculture in the overall economy.
Small Land Holdings: The fragmentation of landholdings limits the ability of
farmers to achieve economies of scale and utilize modern farming
techniques effectively.
Climate Change and Vulnerability: The agricultural sector is highly
susceptible to climate change, with erratic rainfall, droughts, and other
extreme weather events causing disruptions in production and income.
Market Volatility and Price Fluctuations: Farmers face challenges due to lack
of effective market linkages, resulting in price volatility and difficulty in
obtaining fair prices for their produce.
Underinvestment in Agricultural Research and Infrastructure: Inadequate
investment in research and extension services hinders the adoption of
innovative practices, according to PRSIndia. Insufficient storage,
transportation, and market infrastructure also contribute to post-harvest
losses and limit farmers’ ability to access markets effectively.
[Link] initiatives to address challenges
The Government of India has implemented various schemes and policies to
support the agricultural sector and address these challenges:
PM-KISAN Scheme: This income support scheme provides ₹6,000 per year to
farmers in three equal installments.
Pradhan Mantri Fasal Bima Yojana (PMFBY): This crop insurance scheme
provides a safety net against crop losses due to natural calamities, pests, or
diseases.
e-National Agriculture Market (eNAM): This digital platform aims to improve
price discovery and provide farmers with better access to markets.
Promotion of Farmer Producer Organizations (FPOs): The government is
promoting the formation and strengthening of FPOs to help farmers pool
resources, enhance bargaining power, and access better markets.
Agricultural Infrastructure Fund (AIF): This fund aims to support the
development of post-harvest infrastructure, such as warehouses, processing
units, and cold storage facilities.
National Mission on Sustainable Agriculture (NMSA): This initiative promotes
sustainable farming practices, including the use of alternative and organic
fertilizers.
These initiatives aim to enhance agricultural productivity, improve farmers’
incomes, and ensure the sustainable growth of the sector in the face of
evolving economic and environmental challenges.
[Link] on Monsoon
Most Indian farmers rely on rainfall for irrigation.
Irregular or inadequate monsoon causes droughts or floods, damaging crops
and reducing income.
[Link] Land Holdings
Majority of Indian farmers own very small plots of land (less than 2 hectares).
Small size limits productivity, mechanization, and profitability.
[Link] of Modern Technology
Many farmers still use traditional tools and outdated farming techniques.
Limited access to modern machinery, fertilizers, and high-yield seeds affects
crop output.
[Link] Irrigation Facilities
Less than 50% of cultivated land is irrigated.
Dependence on rainwater leads to uncertain crop yields.
[Link] and Financial Crisis
Farmers often take loans from moneylenders at high interest rates.
Crop failures or low prices push them into a cycle of debt, sometimes leading
to suicides.
[Link] and Unstable Prices
Farmers get low prices for their produce due to middlemen, lack of storage,
and poor bargaining power.
Market prices are unpredictable, and Minimum Support Prices (MSP) don’t
always cover costs.
[Link] of Proper Storage Facilities
Poor or no storage forces farmers to sell produce immediately after harvest
at low prices.
Spoilage of perishable items like fruits and vegetables is common.
[Link] Access to Credit and Insurance
Many farmers cannot access institutional loans or crop insurance.
In case of crop loss, they get little or no compensation.
[Link] Government Support
Benefits of government schemes often do not reach small or marginal
farmers.
Bureaucracy, corruption, and lack of awareness hinder implementation.
[Link] and Awareness
Low literacy rates among farmers reduce their awareness about modern
practices, government schemes, and market trends
Farmer suicides are a serious issue in India and reflect the deep problems in
the agricultural sector. Many farmers struggle with poverty, crop failure, and
heavy debt. They often take loans to buy seeds, fertilizers, or equipment, but
if the crop fails due to drought, floods, or pests, they are unable to repay the
debt. Most of them depend on private moneylenders who charge high
interest.
Another major reason is the low price farmers receive for their produce. Due
to lack of storage, they are forced to sell crops immediately after harvest at
poor rates. Government schemes and crop insurance are often delayed or
not available to small farmers.
These constant pressures lead to emotional and mental stress. With no hope
left, some farmers sadly end their lives. To stop this, farmers need timely
help, fair crop prices, better irrigation, proper insurance, and mental health
support.
Farmer suicides in India are caused by debt, crop failure, low prices, and lack
of support. Many farmers face financial stress due to poor harvests and loans
they cannot repay. Without help, some feel hopeless and take their own lives.
Stronger support, fair prices, and better insurance can help prevent this
crisis.
