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Revisiting the Farmer Question
Sept. 29, 2026

Context

  • India is no longer an agriculture-dominated economy, yet it remains deeply dependent on agriculture for employment and rural livelihoods.
  • Agriculture contributes about 15–18% of GDP while supporting nearly 46% of the workforce, creating a structural imbalance between its economic contribution and employment dependence.
  • Small holdings, water scarcity, climate change, rising input costs and weak market linkages continue to undermine farm incomes.
  • The birth centenary of M.S. Swaminathan offers an opportunity to revisit the National Commission on Farmers (NCF) and adapt its vision to contemporary challenges.

The Structural Challenges of Indian Agriculture

  • Small and Fragmented Landholdings
    • Around 86% of farmers own less than two hectares, limiting economies of scale, mechanisation, diversification and technological adoption.
    • Fragmented holdings also weaken farmers’ bargaining power in agricultural markets.
  • Water Stress and Ecological Vulnerability
    • Nearly half of cultivated land remains dependent on unpredictable rainfall, increasing exposure to droughts and erratic monsoons.
    • Conversely, intensive irrigation has caused groundwater depletion in several regions.
    • Conflicts such as the Cauvery dispute demonstrate the growing competition for finite water resources.
  • Climate Change and Rising Costs
    • Climate change is intensifying agricultural vulnerability through heat waves, floods, droughts and irregular rainfall.
    • Simultaneously, rising prices of seeds, fertilisers, pesticides and fuel are squeezing already narrow farm margins.
  • Weak Position in the Value Chain
    • Farmers often receive only a limited share of consumer prices because of inadequate storage, processing facilities, fragmented supply chains and multiple intermediaries.
    • Consequently, increased production does not automatically translate into higher farm incomes.

What the NCF Got Right?

  • Focus on Agricultural Distress
    • The NCF’s central insight was that agricultural distress is fundamentally an income and livelihood problem rather than merely a productivity problem.
    • Agricultural policy should therefore be assessed by improvements in farmers’ economic well-being rather than simply higher yields.
    • The Commission emphasised timely access to water, institutional credit, technology, livestock, fisheries and other productive resources.
    • Stronger links between research institutions and farmers were also necessary to ensure that innovation addressed practical agricultural needs.
  • Ecological Sustainability
    • The NCF recognised that higher productivity cannot come at the expense of soil health, water security and natural-resource conservation.
    • Efficient irrigation and sustainable farming practices therefore need to form an integral part of agricultural policy.
  • Strengthening Farmers’ Bargaining Power
    • The Commission advocated district-level agricultural infrastructure, direct marketing and improved storage, grading, packaging, processing and transportation.
    • These measures could increase farmers’ share in agricultural value chains.
    • Its vision extended beyond cultivation to livelihood security through agriculture, allied activities, rural enterprises and non-farm employment.
    • This approach also broadly converged with the economic thinking associated with Chaudhary Charan Singh, particularly the emphasis on small farmers, remunerative agriculture and rural purchasing power.
  • From Production to Farmer Income
    • Several NCF recommendations have been incorporated into different schemes, but its integrated framework for farmer income, risk reduction, markets and sustainability remains incomplete.
    • Agricultural policy should therefore measure net farm income per household, alongside conventional productivity indicators.
    • A shift from an exclusively MSP-centric approach to comprehensive income-risk management is necessary.
    • MSP should be complemented by crop insurance, income support, irrigation, affordable credit, storage, processing and market linkages.

Agriculture and Global Markets

  • India cannot permanently insulate agriculture from global markets, but small farmers should not be exposed to international competition without adequate safeguards.
  • Free Trade Agreements can create export opportunities, while import competition and global price volatility can create risks.
  • The appropriate approach is a combination of farmer aggregation, productivity enhancement, value addition, risk management, remunerative prices and carefully designed trade safeguards.
  • Strong Farmer Producer Organisations and cooperatives can improve bargaining power and enable farmers to participate more effectively in domestic and international value chains.

The Way Forward: Updating the NCF Vision

  • The agricultural landscape has changed significantly since the NCF’s recommendations, with climate stress, migration, technological transformation and expanding global value chains creating new challenges.
  • The objective should not be to reproduce the NCF mechanically but to update its fundamental vision.
  • Farmers need economic security, ecological sustainability and stronger market participation.
  • Making the NCF a constitutional body could provide institutional continuity and encourage coordinated, long-term agricultural policymaking.

Conclusion

  • India’s agricultural challenge is no longer simply to produce more food but to ensure secure incomes, sustainable livelihoods and dignified economic opportunities for farming communities.
  • The NCF anticipated many of these concerns by placing farmer welfare at the centre of agricultural policy.
  • An integrated farmer-income architecture linking production with water, technology, credit, insurance, infrastructure, processing and markets can transform Indian agriculture.
  • Revisiting the NCF’s vision can help India move from an output-oriented agricultural system towards one centred on farmer prosperity, resilience and sustainable rural transformation.

 

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