Agriculture has long been the cornerstone of India's rural economy, providing livelihoods for a significant portion of the population. Despite the ongoing urbanization and the shift toward industrialization, agriculture and its allied sectors remain central to the economic stability of rural India. A large share of the workforce continues to depend on this sector for employment, income, and sustenance.
The dynamics of the rural agricultural workforce, along with the opportunities and challenges they face, are closely monitored through various surveys such as the Periodic Labour Force Survey (PLFS) and the NABARD All India Rural Financial Inclusion Survey (NAFIS). These surveys provide valuable insights into the evolving trends in rural agriculture and its impact on the broader economy.
Trends in Rural Workforce and Agriculture Employment
According to the PLFS, the percentage of workers engaged in agriculture in India has shown minor fluctuations in recent years. In the 2020-21 survey, 46.5% of the workers were engaged in the agricultural sector. This figure slightly decreased to 45.5% in 2021-22, only to slightly rebound to 45.8% in 2022-23. These trends underscore the persistence of agriculture as a dominant sector in rural India, even as the country undergoes rapid economic changes.
Similarly, the NABARD’s NAFIS survey reveals an increase in the proportion of agricultural households over the past few years. In the agriculture year 2016-17, 48% of rural households were engaged in agriculture, and by 2021-22, this number had risen to 56.7%. This growing share of agricultural households indicates a sustained reliance on farming for rural livelihoods, highlighting the need for targeted policies and programs to support this critical sector.
Government Schemes for Enhancing Agricultural Income and Livelihoods
Recognizing the importance of agriculture in the rural economy, the Government of India has initiated several schemes to support farmers and enhance their livelihoods. These programs aim to increase agricultural production, ensure remunerative returns, and provide income support to farmers. Some of the major schemes include:
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Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): This initiative provides direct income support to farmers, ensuring they have the resources to meet their financial needs for agricultural activities.
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Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY): A pension scheme that aims to provide financial security to farmers after their retirement, ensuring they have a steady income.
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Pradhan Mantri Fasal Bima Yojana (PMFBY)/ Restructured Weather-Based Crop Insurance Scheme (RWBCIS): These schemes protect farmers from crop loss due to natural calamities by providing insurance coverage.
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Modified Interest Subvention Scheme (MISS): This program helps farmers access credit at lower interest rates, making it easier for them to invest in agriculture.
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Agriculture Infrastructure Fund (AIF): This initiative aims to improve infrastructure for agricultural activities such as cold storage, warehouses, and processing units, fostering the growth of agro-based industries in rural areas.
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Formation and Promotion of Farmer Producer Organizations (FPOs): This program encourages collective farming practices, allowing farmers to pool resources and strengthen their bargaining power in the market.
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National Bee Keeping and Honey Mission (NBHM): Promoting beekeeping as a supplementary income source for farmers, this initiative focuses on enhancing rural livelihoods and agricultural productivity.
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Per Drop More Crop (PDMC): Aimed at promoting water-use efficiency, this scheme encourages the adoption of micro-irrigation technologies in agriculture.
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Sub-Mission on Agriculture Mechanization (SMAM): The goal of this scheme is to improve the adoption of agricultural machinery and tools, which can increase productivity and reduce labor costs.
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Soil Health & Fertility (SH&F): This program aims to improve soil health through balanced fertilization practices, ensuring sustainable farming in the long term.
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National Food Security and Nutrition Mission (NFSNM): This mission focuses on enhancing the production of staple foods, ensuring food security for the rural population.
Additionally, the Government is actively working to enhance the skills of rural youth through the Skill Training of Rural Youth (STRY) program, which aims to impart short-term training in agriculture and allied sectors. This program helps in upgrading the knowledge and skills of rural youth, thus promoting self-employment and wage employment in rural areas.
Agriculture Infrastructure Fund: Transforming Rural Agriculture
One of the most impactful initiatives to support the agriculture sector is the Agriculture Infrastructure Fund (Agri Infra Fund). This fund provides financial assistance to rural entrepreneurs and Farmer Producer Organizations (FPOs) for the development of essential infrastructure like cold storage, processing units, and warehouses. By enhancing infrastructure, this initiative aims to improve market access, reduce post-harvest losses, and boost farmers' income.
The Agri Infra Fund not only supports existing agricultural practices but also encourages modern farming techniques and technological adoption. It plays a crucial role in promoting agricultural diversification, improving rural livelihoods, and creating new job opportunities in agro-based industries.
Conclusion
Agriculture continues to be the backbone of India’s rural economy, providing employment and sustenance for a large proportion of the population. Despite challenges, the government’s efforts to boost agricultural income through various schemes and programs have made a significant impact. By addressing issues like financial accessibility, infrastructure development, crop insurance, and skill enhancement, these initiatives work towards ensuring a brighter future for farmers and their families. As India moves forward, fostering a more sustainable, efficient, and profitable agricultural sector will remain key to the prosperity of its rural areas.
