The Economics of Sustainable Agriculture in India

Introduction

Agriculture is a pillar of India's economy and civilization as 70 percent of its population depends on it, but it is under increasing difficulties from climate change, resource depletion, and economic pressures. Every day, four farmers in India take their own lives owing to failed crops and burdening debts. This pressing problem makes it imperative to work towards securing environment and farmer friendly solutions, which includes shifting to more sustainable and climate-resilient farming techniques. However, the questions related to the economic viability and practical implementation of such techniques still loom large. Indian farmers face numerous challenges in implementing these practices, ranging from natural obstacles to systemic issues. This piece specifically examines the role of crop insurance schemes, the possibility of expanded stakeholder participation in agricultural policy making and the feasible implementation of sustainable agricultural practices in India.

Role of Crop Insurance schemes 

An assessment survey showed that major crop loss happens due to inadequate rainfall or droughts. Consequently, the capricious nature of the weather has caused major losses for paddy and wheat crops during the Kharif and Rabi seasons respectively to the farmers. This also helps in making an inference that climate-conscious agriculture is the need of the time to support the healthy produce of agricultural products in India. Additionally, measuring the effect of crop loss, it is more severe among poor peasants, tenants, and sharecroppers than among rich peasants, landlords, and capitalist farmers.

The assessment also states that not many farmers avail of the Crop Insurance schemes available in India and if some avail they later face problems like settlement issues. The major reason behind this has been due to a lack of awareness of its availability and the anxiety of all the paperwork and requirements that may come with it. The National Commission on Farmers (NCF) suggested that there is a need for cheap crop insurance scheme covering all crops and all agricultural households. Two of the recent launched schemes by the Government of India in 2016 were the Pradhan Mantri Fasal Bima Yojna (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS).

It has to be recognized that crop insurance is only a part of the whole risk management plan in agriculture and not a panacea for the problems of climate change. Along with the climate insecurities, a farmer faces triple crisis of poverty, indebtedness and social inequality and to address these a robust mechanism is required to be put in place. As per World Economic Forum’s report crop insurance might be beneficial in the short run but it will bear less fruit in mid-long run owing to the salad bowl of problems. To respond to these challenges, the government should take into consideration the blooming public-private partnership before releasing any plans. Also, generating end-user-based awareness is critical for these schemes to work.

For instance, the PMFBY government guidelines stipulates that Insurance companies should spend 0.5% of the total gross premium for publicity expenses at the field level, but there has been very minimal monitoring and evaluation of such activities at the ground level in India. The awareness level of farmers about crop insurance benefits, processes, and outcomes is also very low, hindering the incentive to uptake insurance as an effective risk management strategy. Fortunately, India has a highly subsidized insurance scheme where the government payout the premiums and it is necessary for a loanee farmer to take the scheme, still the effectiveness of it has been remarkably low. Another major reason for the debacle of the scheme is delayed payouts, which compromises the fundamental objective of the scheme. 

Targeted reforms can include penalties for delay in payouts for the government, inclusion of hailstorm and attack by wild animals in the coverage, compulsory expenditure on publicity by the insurance companies and a report to the state government of the same. To make the country’s agriculture climate resilient in the near future it should adopt different measures which may include sustainable practices, alternative job opportunities and this should be supported by the Crop Insurance scheme. Crop insurance along with risk-mitigating technologies like rainwater harvesting, flood-tolerant seeds etc. can make the crop more resilient and will be beneficial to the overall scheme as well.

Scope of Stakeholder participation in formulating policies

Increasing stakeholder participation in agrarian policy making can ensure more effectiveness of schemes undertaken by the government by keeping the concerned parties in the loop. The case study of a village in Southeast Rajasthan named as Pratapgarh further delves into the factors that affect decision-making in the agricultural matters. As per this case study, there are many factors which affect decision making among the farmers, but the most important ones are the social and cognitive factors. The farmers learn a lot from their peers, they imitate them and try to implement successful techniques, here steps can be taken to arrange them into groups where insights can be shared like the Pragathi Bandhu Groups which stands as a proven model.

In a report by Ministry of Agriculture and Farmers Welfare, the formulation of Grievance Redressal Committees at different levels to ensure compliance has also been recommended, the committee also suggested to nominate local representatives [MP/MLAs etc.] in the District Level Grievance Redressal Committee (DGRC) in order to ensure accountability of concerned stakeholders and enhance the acceptability of the schemes amongst the farmers. These steps along with suggestions from the farmers itself can make policy formulation more inclusive and more effective.

Feasibility of climate-conscious agricultural practices in India

Shifting to sustainable agricultural activities might not be feasible for all the farmers and the farmers might evaluate the economic viability before making such shift. The farmers in Andhra Pradesh have shifted from chemical fertilizers to adopting natural farming practices and have reaped far-reaching benefits from this shift. In the past, these farmers faced significant challenges due to pest infestations, leading to heavy debts from purchasing pesticides, which drove them to seek natural alternatives. With assistance from local organizations, they began to implement non-pesticide management strategies, utilizing natural deterrents such as neem and chili pepper, as well as planting trap crops like marigold and castor. Unlike chemical pesticides that kill all insects, non-pesticide management focuses on maintaining a balanced ecosystem that supports beneficial insects like ladybugs, dragonflies, and spiders, which can aid plant growth. Within a year of applying these natural techniques, villagers reported several positive changes, including the resolution of previously experienced health issues.

Farms practicing non-pesticide management not only achieved higher profits but also reduced their expenses. The sourcing, grinding, and mixing of natural repellents generated additional job opportunities in the community. As farmers expanded their agricultural practices, innovations like backpack sprayers allowed them to manage their crops more effectively. Overall, residents experienced improvements in various aspects of their lives, including health, happiness, and financial conditions.

Conclusion and Suggestions

Sustainable agriculture in India is multifaceted in nature highlighting both the potential benefits and the significant challenges in its implementation. The analysis of legal and policy frameworks, particularly crop insurance schemes, indicates that while supportive policies are crucial, their effectiveness is often hampered by lack of awareness, implementation issues, and delayed payouts.

Moving ahead, a multi-pronged approach is necessary to advance sustainable farming in India. This should include, improving awareness and education about sustainable farming practices and available support schemes, developing more flexible and responsive crop insurance and support policies, fostering greater stakeholder participation in policy formulation and implementation, promoting research and dissemination of cost-effective, locally appropriate sustainable farming techniques, implementing policies in a phased manner to allow for gradual transition and learning.

By addressing these areas, India can work towards a more sustainable agricultural sector that balances economic viability with environmental stewardship. Further research into successful implementation strategies and long-term economic impacts of sustainable farming practices would be valuable in guiding this transition.

The Blog has been authored by Harshita Jindal, a III Year B.A. LL.B. (Hons.) Student at Rajiv Gandhi National University of Law, Punjab.