Why resolving India’s farm crisis is important and how to .

India’s farm crisis is important as economic reforms have failed to solve asymmetry between agricultural share in agriculture and low share in GDP.

Farmers, who participated in the Kisan Mukti March in  March, in the month of November 30, 2018, farmers of 24 states have joined in protest against their demands for inclusion, in which beneficiaries of debt relief and their production Price includes. (PTI) Thousands of farmers on Friday demanded loans on Parliament Street and demanded on profit prices, including the procurement of their produce. Opposition parties, especially Left-linked farmer organizations, played a vital role in the movement. Regardless of politics, there are systematic roots in India’s rural crisis, which need to be addressed at policy levels. There are four reasons why the opposition of farmers should be taken seriously. Economic reforms have failed to solve inequality between the high share of agriculture and low share in GDP. This has resulted in agricultural income, which is the biggest source of employment in the Indian economy. The markets have failed to provide relief in the increase in agricultural income or generating substantial non-agricultural jobs. This is the biggest challenge for India’s structural change.There is a fundamental paradox between agricultural income and inflation in India. Consumer Price Index (CPI) of food items is 40% of the basket. Inflation targeting is now the guiding framework of India’s monetary policy. Under the present government, low inflation has also worsened the conditions of trade for farmers. This means that the prices of non-agricultural prices are increasing rapidly compared to the prices of agriculture. To keep inflation in check, agricultural income can not be squeezed indefinitely and vice versa. This is the biggest political economy economy facing India’s policy makers.Low price is not the only reason for concern. Extreme weather events and weak rains have adversely affected the yield. Farmers are the first group to face the consequences of climate change. It is important to answer the adverse effects of climate change on agriculture for the safety of food security and livelihood


Unrest in the agricultural economy of India is surrounded by a large society. Rural crisis is forcing traditional farmer communities to take up demands like reservations, which can not be a long-term solution for their livelihood concerns. Healthy growth in agricultural income is also favorable for India’s quest for social justice. Statistics of the National Sample Survey Office (NSSO) show that other backward classes are the largest relative in agricultural investment. A continuous crisis in agriculture is bound to accelerate India’s caste wars.

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