“Farmers Earn Just Rs 27 a Day” – Supreme Court Committee Sounds Alarm, Calls for Loan Waivers and Legal MSP

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The Supreme Court’s high-level committee report reveals a dire agricultural situation in India, highlighting low farmer incomes and escalating debt, particularly in Punjab and Haryana. It recommends urgent measures like loan waivers, legal MSP recognition, and employment generation to alleviate the agrarian crisis, urging action to secure livelihoods and enhance food security for millions.

New Delhi: The interim report of a high-level committee appointed by the Supreme Court has painted a grim picture of the state of agriculture in India, revealing alarming statistics and recommending urgent measures such as loan waivers for farmers and the legal recognition of the Minimum Support Price (MSP). This, the report contends, is essential to mitigate the deepening agrarian crisis and alleviate the plight of farmers.

Dire Income Levels and Mounting Debt

The report, chaired by retired judge Nawab Singh of the Punjab and Haryana High Court, highlights that farmers relying solely on agriculture earn a shockingly low Rs 27 per day, making it nearly impossible for them to sustain a livelihood. Based on data from the 2018-19 Situation Assessment of Agricultural Households, the report states that the average monthly income of agricultural households is just Rs 10,218, placing them at the bottom of the economic ladder.

Debt levels among farmers have skyrocketed, with institutional debt in Punjab reaching Rs 73,673 crore and Haryana’s debt standing at Rs 76,630 crore in 2022-23, according to NABARD. Non-institutional debt adds to the crisis, comprising 21.3% of total outstanding debt in Punjab and 32% in Haryana, as per NSSO data. This escalating debt burden has led to widespread despair, with over 400,000 farmers and agricultural workers committing suicide since 1995, when the National Crime Records Bureau began tracking such data.

A Crisis Rooted in Stagnation and Environmental Challenges

The committee traces the roots of the agrarian crisis to stagnation in agricultural production and yields, particularly since the mid-1990s following the initial gains of the Green Revolution. Rising production costs, shrinking incomes, and environmental factors such as declining water tables, droughts, and extreme weather conditions have exacerbated the challenges faced by farmers.

Punjab and Haryana are among the worst-hit states. From 2014-15 to 2022-23, Punjab’s agricultural sector ranked 20th out of 21 major agricultural states, with a growth rate of just 2%, while Haryana ranked 16th with a growth rate of 3.38%. Both states consistently lag behind the national average, raising concerns about food security and sustainability.

Urgent Recommendations for Reform

The committee has called for immediate steps to address the crisis, including:

  • Legal recognition of the MSP to ensure fair prices for farmers.
  • Debt relief measures, such as loan waivers, to alleviate the financial burden.
  • Employment generation to reduce reliance on agriculture as the sole source of income.
  • Promotion of organic farming and crop diversification to boost productivity and sustainability.
  • Reforms in the agricultural marketing system to improve farmers’ access to profitable markets.

A Call for Action

This (crisis) comes at a time when it has been conclusively established that agricultural growth and sustainability has far more potential to alleviate poverty and provide livelihood to significantly large sections of the population,”

the report noted, urging concrete steps to make agriculture profitable. The committee also emphasized the need for a more equitable distribution of income, as 46% of the workforce relies on agriculture, which contributes just 15% of national income.

The Supreme Court is expected to deliberate on the committee’s findings, paving the way for systemic reforms in the agricultural sector. The time to act is now, to secure the livelihoods of millions and safeguard the nation’s food security.

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