Structural reforms are necessary to boost farmers’ Income and indian agriculture.
Agricultural Scenario in India-
We know India is a Agro based country,arable land area of 159.7 million hectares ,total farmers 15-16cr or 160 million but India's agricultural export very low,Overall agri and processed food exports around 1.28 lakh crore or $18 billion in 2019.
We know India import several Agl products, like Edible oil and Pulses.
Edible oil one of the top product, estimated import worth $12billion and Pulses around $2 billion.
India need to encourage corporate bodies to invest in building up the infrastructure facilities for storage and exports of foodgrains.
I think India's farm production will be demand oriented and farmers income will be double in next 4-5 years....may be triple.
Agricultural Scenario in US-
We know USA is manufacturing based country.US has 20lakh farmers,but USA agricultural exports were valued at $135 billion in 2019....which is almost 8times higher than India.
We know USA has highest number of Agro based MNCs such as Cargill,Allen Family Foods,Monsanto, Golden Harvest Seeds and Archer Daniels Midland Company etc.
They are focused on empowering farmers—large and small—to produce more from their land while conserving more of the world’s natural resources such as water and energy. They do this with their leading seed brands in crops like corn, cotton, oilseeds and fruits and vegetables.
They also produce leading in-the-seed trait technologies for farmers, which are aimed at protecting their yield, supporting their on-farm efficiency and reducing their on-farm costs.
Huge gap between domestic production and demand in India.
(1) India's edible oil import worth around $11-$12 billion.
(2) Pulses import worth around $2-3billion.
(3) 2010-2015 India's annual agricultural imports increased more than 60% from $14.1 billion to $22.8 billion.
Farmers income India vs US -
In India ,the average income of a farmer is estimated at Rs 77,976($1100) per year, according to the Dalwai committee report.in US average farmers income Rs49L-50L or $70,000.
So,Structural Reforms are necessary to boost Farmers’ income and indian Agriculture.
