How India’s economic policies are hurting its farmers

Himanshu, an associate professor of Economics at Delhi’s Jawaharlal Nehru University, says India’s rural economy is in crisis and that the government has failed to address the issue with sufficient targeted spending.

“This can happen if the prices of output rise slower than the prices of inputs,” Himanshu told DW, adding that “With rising diesel prices, electricity charges and fertilizer prices, even if the farmers produce more, they can incur losses.”

Lekha Chakraborty, professor and chair at the National Institute of Public Finance and Policy, warns that minimum pricing is not a magic bullet to cure India’s agrarian distress.

“Neglecting the agricultural sector will not help India to ‘graduate’ to next level of GDP because of its close links to other sectors and to ensure food security,” she told DW. “A mindless focus on the physical infrastructure without giving adequate attention on food security, climate change concerns, or social security measures for vulnerable populations including farmers can widen inequalities further.”

Chakraborty believes that the doubling of income for farmers, which was promised by the government, can happen only if the growth rate of the sector increases significantly, which has not happened. Targeted cash transfers to farmers have also not solved the problem entirely.

‘India must adopt a manufacturing strategy akin to China’s’

With the upcoming elections this year, dissatisfied farmers could spell trouble for the ruling Bharatiya Janata Party (BJP) which is seeking a third consecutive term.

The government has already conducted four rounds of negotiations with farmer leaders, but the talks have produced no tangible results.