Challenges faced by the new Union Minister of Agriculture and Farmer Welfare in India

Source: The post challenges faced by the new Union Minister of Agriculture and Farmer Welfare in India has been created, based on the article “What India’s new agriculture policy must focus on” published in “Indian express” on 12th July 2024

UPSC Syllabus Topic: GS Paper3-Indian economy-agriculture

Context: The article discusses the challenges faced by Shivraj Singh Chouhan, the new Union Minister of Agriculture and Farmer Welfare in India. It highlights the need for a new agricultural policy, the impact of central bank policies on farmers, and the importance of documenting policy failures to improve future governance.

For detailed information on Challenges Facing Indian Agriculture read this article here

What are the primary challenges for the new Union Minister of Agriculture?

1. Regaining Trust: The mishandling of the farm laws rollout has left farmers distrustful. Addressing this is crucial for any progress.
2. Policy Overhaul Needed: Unlike major agricultural nations like the US, EU, and China, India lacks a current and adaptive agricultural policy. Introducing a policy that suits diverse regional needs is necessary.
3. Federal Structure Challenges: Agriculture being under state control means central policies must be adaptable to work within a complex federal structure, ensuring regional needs and specifics are addressed effectively.

How do central government policies affect agriculture?

1. Jurisdiction Over Agriculture: Agriculture and land management are primarily under state jurisdiction, limiting central government’s direct influence.
2. Separate Ministries: Vital sectors like animal husbandry and fisheries are managed by separate ministries, fragmenting policy impact.
3. Budget Control: The Ministry of Finance controls budget allocations, affecting funding availability for agricultural initiatives.
4. Inflation Policies: RBI’s outdated inflation targeting impacts agriculture. By focusing on consumer price stabilization, RBI inadvertently suppresses farmgate prices. For example, controlling onion prices by Rs 20 per kg leads to significant financial losses for farmers, amounting to Rs 2,00,000 per acre.

What should be done?

1. Develop New Policy: Create an agricultural policy that promotes “strategic autonomy” over “self-sufficiency” and caters to India’s diverse agro-climatic regions.
2. Compensate Farmers: Implement mechanisms to compensate farmers for depressed farmgate prices due to inflation control. For instance, onion farmers lost Rs 2,00,000 per acre when prices dropped by Rs 20 per kg.
3. Document Failures: Record policy failures to prevent repeated mistakes, improving regulation, enforcement, governance, transparency, and accountability in agriculture policies.

Question for practice:

Examine how central government policies impact the agriculture sector in India.