I have come to my village... and had conversations with family members engaged in farming.
Mr. Sujit Kumar |
While there's lot of fury and fire over government's historic (!) price hike for procurement of farm produce, the reality is heart wrenching. Farmers have actually resigned themselves to their sorry fate. There is simmering anger in youth, who are un/under employed in farming, for lack of better opportunities. I asked them what they feel about recent increase of MSPs would do to their well-being. They answer: not much as most of their produce get sold to private intermediaries at well below MSPs as govt remains largely absent or does token purchases from marginal and small farmers.
Farmers in Western Bihar/eastern UP grow two staple crops a year: Paddy and Wheat. A conversation about cost in farming is revealing.
How remunerative is staple farming: A cost-benefit analysis
Land : 1 acre
1) Crop: Kharif (Paddy)
Seed: Rs 350
Rent: Rs 7000
Ploughing: Rs 1200
Irrigation: Rs 1500
Plantation:Rs 2000
Fertilizer: Rs 2000
Weed elimination: Rs 1200
Harvesting: Rs 1200
Carriage: 200
TOTAL COST: 16650
Output: 16 quintal
MRP: Rs 1500 per quintal
TOTAL REVENUE: 16*1500= 24000
Kharif income= 24000-16650=7350
2) Crop: Rabi (Wheat)
Seed: Rs 1700
Rent: Rs 7000
Ploughing: Rs 1200
Fertilizer: Rs 1600
Irrigation: Rs 1000
Harvesting: Rs 1200
Carriage: Rs 200
TOTAL COST: 13900
Output: 12 quintal
MRP: 1600
TOTAL REVENUE: 1600*12 : 19200
Rabi income= 19200-13900= 5300
3) Annual income of Farmer =7350+5300 = Rs. 12650
For a marginal farmer( landholding of 1 hectare= 2.5 acre)
Annual income= 12650*2.5= Rs 31625
Monthly income= Rs 3250
Daily income= Rs 87
Minimum daily wage for unskilled labor= Rs 300
If one opts to be a farmer, working on leased land, s/he earns less than a third of daily wage earner, working in construction sector.
The economics is not much helpful for landowning farmer too, working on 1 hectare arable own land. S/he will make Rs 66000 annually or Rs 5500 per month. It's less than Rs 200 a day income for a family of five.
Informal sector offers marginally better wages for unskilled labour compared to the farm sector.
It ll take 10 hectare of land to make conventional farming competitive with lowest paying Grade IV job in government. No wonder there's a long queue for government sector employment.
Doubling farm income by revising minimum support prices (MSP) is not sufficient to improve the plight of 95% of farmers, whose land ownership is less than 2 hectares. Alternatively, one must opt integrated farming, Viz. Staple crops be mingled with commercial ones, with parallel income avenues in dairy, poultry, honeybee, fisheries, etc. But these are capital intensive ventures, which means farmers must have good savings/access to cheap credit to begin with. Alas, both the pre-conditions remain mere a wish for great majority of farmers.
Very informative and eye opening article. At times it errs when we boast of having agriculture based economy and country.
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