Prime Minister Narendra Modi gave us the phrase aapda mein avsar or opportunity in adversity in 2020. That is exactly the perspective we need to bring into Indian agriculture. It requires a rewiring of our basic foundational thinking and gaze toward agriculture and farmers. For too long, Indian politics and policymakers have demanded that we treat the farming sector with kid gloves and look at farmers from a prism of pity and charity.
So, when Ashwani Pareek, director of the National Agri-Food Biotechnology Institute (NABI), recently stated that over 4,000 Indian farmers are leaving agriculture daily, it was seen by some as a tragedy and a crisis. But the sharper reaction should instead be: why do we still have so many Indians in farming?
Speaking at the ‘Visions of Institutions in the Run-Up to India’ lecture series, Pareek questioned the conventional economic wisdom that supports a decrease in the farming workforce, suggesting that such a trend could have notable implications in the Indian context.
However, this shift is not a crisis but a positive development and signals a much-needed transformation in India’s economic landscape. Rather than being alarming or concerning, it is a unique opportunity for India to embrace change that will not only accelerate the economic process, but also alter social relations for good.
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Farm-to-factory transition
India needs a radical farm-to-factory transition, much like the United States in the early part of the 20th century that galvanised the nation’s economy in unprecedented ways, and also helped over a million Black people in the country’s South move away from rural servitude. That India needs to pursue a massive China-style make-in-India dream urgently has been stressed many times before. But that will happen only if we reorient our Gandhian gaze toward farmers.
For years, India has grappled with an economic paradox. More than half of the country’s population is employed in agriculture and allied sectors, but their contribution to the nation’s GDP is only 18.3 per cent. This implies that too many people work in a sector that creates too little wealth. More importantly, the share of agriculture in GDP has been on a decreasing trajectory for decades.
This glaring disparity underscores an urgent need for a bold change in our approach toward agriculture. It is time to recognise that the traditional wisdom that advocates maintaining a large farming workforce does not align with the current economic realities and future potential. We may argue that agriculture employs a large part of our population, but are they fully employed? Perhaps not.
The Indian government sustains farming, supports farmers and ensures food security through subsidies and Minimum Support Price (MSP). The government paid Rs 2.37 lakh crore to procure wheat and paddy under MSP operations in 2022-23. That’s a lot of money. However, questions have been raised about the efficacy and sustainability of such practices. With India now self-sufficient in food production, the Centre procuring grains from states seems incongruent today. The fact that India still features in the Global Hunger Index has less to do with availability of food grains and more to do with accessibility and affordability.
The National Rural Employment Guarantee Act (NREGA) needs urgent reorientation, too. It is stopping the rural population from leaving villages and is hardly being used to create infrastructure.
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Shift to manufacturing, services sector
To address this pressing challenge, a shift in India’s workforce structure is needed. It may seem radical, but India should consider strategically moving at least 80 per cent of farm labour to the manufacturing and services sector. While it won’t be easy to achieve, the government must strive to accomplish this goal. It is not up to the farm labour to make this transition, although a section is already moving in that direction.
What’s the rationale behind supporting this transition? One, farmers will be able to access higher incomes, better living standards, and increased financial security by moving into sectors with greater GDP contributions. This will enhance their productivity and add more value to the nation’s economy. Two, reducing the concentration of workers in agriculture would incentivise the adoption of more technologically advanced farming methods, increasing efficiency and reducing the sector’s environmental impact.
Naturally, a transition of this magnitude presents challenges, and strategic planning and government support are vital. Focusing on skill development and education initiatives, and creating suitable job opportunities, is crucial to facilitate a successful and smooth transition for farmers.
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India can learn from the world
There are at least three global models that India can pick from while taking into account its own regional nuances.
Several countries have successfully employed a small agriculture workforce while achieving high agricultural production levels. This has been achieved through various strategies and advancements in agricultural practices. Let’s look at some of these approaches:
Mechanisation and technology: Countries like the US, Canada, and Australia have embraced mechanisation and advanced technologies in agriculture. Tractors, combine harvesters, and
other modern machinery have replaced manual labour, significantly reducing the need for a large agricultural workforce. Advanced technologies, such as precision agriculture, satellite imaging, and automated irrigation systems, have further optimised production efficiency.
Large-scale farming: Brazil and Argentina are examples of countries that have successfully implemented large-scale farming operations. By consolidating small fragmented landholdings into bigger farms, they have improved economies of scale, increased productivity, and reduced labour requirements. This consolidation has led to more efficient use of agricultural land and the adoption of modern farming techniques.
Specialisation and intensive farming: The Netherlands is renowned for its highly efficient intensive agriculture. The country has utilised specialised farming methods, such as greenhouse cultivation, vertical farming, and hydroponics, to maximise output while minimising labour needs. By focusing on high-value crops and employing sophisticated production techniques, the Netherlands has become a leading exporter of agricultural products. The Indian government should subsidise hydroponic farming rather than dedicate a large yearly budget to MSP.
Also read: How a surprise revolution in Chhattisgarh made it No. 2 for paddy procurement in India
Bring farm laws back – with modifications
To unlock its true economic potential and accelerate growth, India must embrace the idea of ‘farm to factory’. The transition will pave the way for economic diversification, while reducing the country’s heavy reliance on agriculture and enhancing its industrial capacity. By boosting the manufacturing sector, India can tap into global supply chains, attract foreign investments, and increase export opportunities, fostering economic growth and stability.
Due to the resistance from MSP beneficiary farmers, the Narendra Modi government had to withdraw the three farm laws. Policymakers also failed to take the country along. The government must reintroduce the farm laws with appropriate modifications and create enough goodwill among farming communities to implement them smoothly.
This shift can address the issue of rural unemployment and underemployment by providing better livelihood opportunities to millions of Indians. With the right policies and investments in skill development, India can equip its workforce with necessary expertise for the manufacturing sector, ensuring a successful transition.
Furthermore, industrialisation can drive urbanisation, leading to more vibrant and dynamic cities. As cities grow, they become centres of innovation, technology, and services, making the country’s economy more modern and competitive.
It is essential to recognise that this trend of farmers leaving agriculture is not a crisis but an opportunity—a golden chance to rejuvenate India’s economy, empower the country’s farmers, and drive India toward a more prosperous and sustainable future.
Rather than viewing this shift with apprehension, we should embrace it as a catalyst for economic diversification and productivity growth. But this shifting requires a focused approach from the government. Key strategies include comprehensive skill development and training programmes to equip farmers with the necessary skills for non-agricultural industries; creating suitable job opportunities in collaboration with industries to absorb the transitioning farmers; and investment in infrastructure development in rural areas to facilitate the change.
(Edited by Zoya Bhatti)