Overview

Agrarian distress in India refers to the economic, social, and environmental challenges faced by the agricultural sector and its stakeholders, particularly farmers. Despite agriculture's critical role in the Indian economy, employing over 50% of the workforce and contributing around 17% to the GDP, the sector is plagued by numerous issues that lead to distress. These challenges include declining farm incomes, high levels of indebtedness, inadequate access to technology and markets, fluctuating prices, climate change, and policy-related challenges.

Key Aspects of Agrarian Distress

1.Declining Farm Incomes: Farmers often struggle with low profitability due to rising input costs, inadequate price realization, and limited access to credit and insurance. According to the National Sample Survey Office (NSSO), the average monthly income of an agricultural household in India was ₹10,218 in 2018-19, reflecting the financial strain on farming families.

2.High Indebtedness: Many farmers rely on informal credit sources with high-interest rates, leading to unsustainable debt levels. The All India Debt and Investment Survey (2019) reported that 52.5% of agricultural households were indebted, with an average outstanding loan of ₹74,121 per household.

3.Inadequate Access to Technology and Markets: Small and marginal farmers, who make up 86% of India's farming community, often lack access to modern technology, quality seeds, fertilizers, and efficient irrigation systems. Furthermore, the lack of robust market linkages and infrastructure restricts their ability to sell produce at fair prices.

4.Price Volatility: Agricultural produce prices are highly volatile, influenced by global market trends, domestic demand-supply dynamics, and policy changes. This volatility makes it difficult for farmers to plan and sustain their livelihoods.

5.Climate Change and Environmental Challenges: Erratic weather patterns, droughts, floods, and soil degradation exacerbate agrarian distress by affecting crop yields and agricultural productivity. The Economic Survey 2018 estimated that climate change could reduce annual agricultural incomes by up to 25% in unirrigated areas.