Recalling the M.S. Swaminathan Report

The National Commission on Farmers (NCF) was constituted in 2004 with M.S. Swaminathan as its Chairperson. The NCF delivered four reports in December 2004, August 2005, December 2005, and April 2006. Subsequently, the fifth and final report was presented on October 4, 2006. These reports focused on the causes of the farmers’ distress, farmers’ suicides, and the recommendations to address these problems. These reports also suggested measures to achieve ‘faster and more inclusive growth’ which was the goal of 11th FYP (Five-Year Plan).

The NCF was mainly constituted to

suggest policy reforms to improve farmers’ income and increase credit flow to all farmers;
enhance productivity, sustainability, and longevity of farming practices in the country;
improve quality, reduce cost, and decrease involuntary unemployment in farming;
suggest measures to attract and retain youth in farming and methods to upgradable horticulture, animal husbandry, fisheries, agro-forestry, and agro-processing;
suggest special programmes for dry land farming especially in arid and semi-arid zones;
protect from international prices and their effects on the Indian products;
improve food and nutritional status in the country and achieve universal food security over time; and
recommend measures for credit, knowledge, skill, and marketing empowerment of women.

Important Findings and Recommendations

Causes for farmers’ distress • Some of the major causes contributing to the agrarian crisis include unfinished agenda in land reform, issues concerning the quantity and quality of water, technology fatigue among farmers, challenges related to access, adequacy, and timeliness of institutional credit, opportunities for assured and remunerative marketing, and adverse meteorological factors exacerbating these challenges.

Farmers require assured access and control over fundamental resources, encompassing land, water, bioresources, credit and insurance facilities, technology, knowledge management, and markets.
The NCF suggests the insertion of ‘Agriculture’ into the Concurrent List of the Constitution to promote better coordination and collaboration between central and state governments in agricultural matters.

Land reforms India has a great inequality in land holdings. According to the 5th NCF report, around 40 per cent of the bottom households hold only around 3.8 per cent of the land while the top 2.6 per cent households hold around 26 per cent of the land. So, the report suggested that access to land was important for the farming sector to improve. Land reforms were necessary. The commission recommended implementing a land ceiling and distributing land to the landless. They also suggested avoiding the conversion of agricultural land to non-agricultural land and using it for non-agricultural proposes. They also suggested to establish a National Land Use Advisory Service to link land use with ecological and marketing factors for a specific location and season.

Irrigation Out of the total cultivated land area spanning 192 million hectares, rainfed agriculture accounts for 60 per cent of the overall cropped area and contributes to 45 per cent of the total agricultural output. The report proposed to:

implement a comprehensive set of reforms aimed at ensuring sustained and fair access to water for farmers;
make it compulsory to enhance water supply by adopting rainwater harvesting techniques and recharging aquifers. A specific initiative called the “Million Wells Recharge” programme should be initiated, focusing particularly on private wells;
significantly boost investment in the irrigation sector during the 11th Five-Year Plan period, with allocations directed towards various areas including large surface water systems, minor irrigation projects, and new schemes for groundwater recharge.

Agricultural productivity India has lower productivity than many other agriculture-dependent countries. To improve productivity, the commission recommended increasing public investment in agriculture and promoting soil test laboratories to study, analyse, and find out the most suitable crops and soil profiles. It also recommended promoting conservation and sustainable farming to improve soil health, water, and the environment.

Credit and insurance Credit and insurance play pivotal roles in supporting small farm families, ensuring their financial stability and resilience. The NCF proposes a comprehensive strategy to address the credit and insurance needs of farmers such as

the formal credit system should be expanded to reach the most economically disadvantaged farmers;
crop loans should be offered at a reduced interest rate of 4 per cent, with government support to alleviate the financial burden on farmers;
a moratorium on debt recovery, including loans from non-institutional sources, should be enforced during distress situations and calamities until farmers regain their financial stability;
an Agriculture Risk Fund should be established to provide financial relief to farmers affected by successive natural calamities;
women farmers should be issued Kisan Credit Cards, with joint ownership pattas serving as collateral, to facilitate their access to credit;
develop an integrated credit-cum-crop-livestock-human health insurance package to provide comprehensive coverage to farmers;
expand crop insurance coverage to encompass the entire country and all crops, with reduced premiums, ensuring financial protection for farmers against crop losses;
create a Rural Insurance Development Fund to undertake developmental initiatives aimed at spreading rural insurance and enhancing its accessibility;
enhance financial services, infrastructure, and investments in human development, agriculture, and business development services to promote sustainable livelihoods for the rural poor. This includes measures such as productivity enhancement, local value addition, and establishing alternate market linkages; and
strengthen institutional development services by forming and supporting producers’ organisations like self-help groups (SHGs) and water user associations.

Food security The mid-term appraisal of the 10th Plan identified India’s lag in achieving the Millennium Development Goals, particularly in halving hunger by 2015. This shortfall is evidenced by the decline in per capita foodgrain availability and its unequal distribution, posing serious concerns for food security in both rural and urban areas.

In 2004–05, around 28 per cent of households were below the poverty line, encompassing nearly 300 million individuals. However, as of 1999–2000, approximately 77 per cent of the rural population consumed diets providing less than 2,400 kcal per capita per day, defining the poverty line. Studies highlight that poverty is concentrated in predominantly rural areas with limited resources, such as rain-fed agricultural regions, where food deprivation is acute.

To address these challenges, the report recommends several measures some of them are as follows:

The NCF proposes the establishment of a universal public distribution system (PDS), with the total required subsidy estimated at one per cent of the gross domestic product (GDP). It charted out that the total budget required will be one per cent of the GDP. This was to move towards universal food security and zero hunger. It also recommended the formulation of a National Food Guarantee Act.
Delivery of nutrition support programmes should be reorganised on a life-cycle basis, with active involvement from panchayats and local bodies.
Micronutrient deficiency-induced hidden hunger should be tackled through an integrated food fortification approach.
Women SHGs should spearhead the establishment of community food and water banks, following the principle of ‘store grain and water everywhere’.
Initiatives should be undertaken to assist small and marginal farmers in enhancing the productivity, quality, and profitability of their farm enterprises. Additionally, a rural non-farm livelihood initiative should be organised.
The report suggests to formulate a National Food Guarantee Act, drawing upon the useful features of the Food for Work and Employment Guarantee programmes. By boosting demand for food grains through increased consumption by the poor, essential economic conditions for further agricultural progress can be fostered.

Prevention of farmers’ suicides In recent years, a concerning trend of farmer suicides has been observed across several states, including Andhra Pradesh, Karnataka, Maharashtra, Kerala, Punjab, Rajasthan, Odisha, and Madhya Pradesh. Recognising the urgency of addressing this issue, the NCF has emphasised the need for prioritising interventions to mitigate farmer distress and prevent further suicides.

The NCF has proposed a range of measures to tackle the problem of farmer suicides.

These measures include

introducing affordable health insurance schemes and strengthening primary healthcare centres to provide better medical support to farmers. This also includes extending the National Rural Health Mission to areas identified as hotspots for farmer suicides;
creating state-level farmers’ commissions with farmer representation to ensure swift government responses to farmers’ issues and grievances;
revamping microfinance policies to focus on livelihood finance, integrating credit with support services in technology, management, and market access;
extending crop insurance coverage to all crops at the village level, ensuring fair assessment and adequate protection against crop failures;
implementing a social security net including provisions for old age support and health insurance to safeguard farmers’ well-being;
promoting aquifer recharge and rainwater conservation, decentralising water use planning with the aim of achieving Jal Swaraj (water self-sufficiency) at the village level;
ensuring availability of quality seeds and agricultural inputs at affordable prices and timely delivery;
advocating for the adoption of low-risk and cost-effective agricultural technologies to minimise farmers’ vulnerability to crop failures, particularly discouraging high-cost technologies like Bt cotton;
implementing focused market intervention scheme (MIS) for crucial crops such as cumin in arid regions to stabilise prices and protect farmers from market fluctuations;
taking swift action on import duties to shield farmers from adverse impacts of international price fluctuations;
setting up village knowledge centres or gyan chaupals in areas with high farmer distress to provide relevant information and guidance on agricultural practices and alternative livelihood options; and
launching public awareness campaigns to educate communities about recognising early signs of suicidal behaviour and seeking timely help and support.

Competitiveness of farmers To enhance the agricultural competitiveness of farmers with small land holdings, it is essential to focus on improving productivity while ensuring access to profitable markets. The NCF has put forth a series of recommendations to address these issues:

The establishment of entities like Small Cotton Farmers’ Estates is suggested. These organisations would integrate decentralised production with centralised services such as post-harvest management, value addition, and marketing. This approach aims to leverage institutional support and facilitate direct connections between farmers and consumers.
Efforts are required to enhance the implementation of MSP mechanisms and ensuring fair pricing for farmers. MSP arrangements should be expanded beyond crops like paddy and wheat to include other essential crops such as millets and other nutritious cereals. Additionally, the MSP should be set at a level that is at least 50 per cent higher than the weighted average cost of production to ensure profitability for farmers which is also referred to as the C2+50 per cent principle. It involves incorporating the input expenses such as capital costs and land rent, thereby ensuring farmers receive 50 per cent of the profits.
C2 represents the total cost of production, include account rent and interest foregone on land and machinery owned by farmers.
MSP = C2 + 50 per cent of C2.
The commission recommended that the MSP should be 1.5 times the farmers’ input costs.
Ensuring availability of accurate data regarding spot and future prices of agricultural commodities is crucial. Platforms such as the Multi Commodity Exchange (MCD), the National Commodity and Derivatives Exchange Limited (NCDEX), and the Agriculture Produce Marketing Committee (APMC) and electronic networks play a vital role in disseminating this information across various locations, benefitting farmers by enabling informed decision-making.
Reforms in the APMC acts are recommended to transition towards a market system that emphasises grading, branding, packaging, and the development of both domestic and international markets for local produce. This shift aims to foster a more efficient and competitive agricultural market, ultimately benefitting farmers. Additionally, there is a push towards creating a single Indian market, streamlining marketing, storage, and processing regulations to facilitate easier trade across regions.

Employment In India, there has been a gradual but notable shift in the composition of the workforce over time. Back in 1961, a significant 75.9 per cent of the workforce was engaged in agriculture. However, by 1999–2000, this figure had decreased to 59.9 per cent. Despite this decline, agriculture still remains the primary source of employment in rural areas.

To address employment challenges comprehensively, India’s overall strategy needs to focus on two main objectives. Firstly, it should aim to create productive employment opportunities across various sectors. Secondly, efforts should be made to enhance the quality of employment, leading to higher real wages through increased productivity.

To achieve these goals, several measures are recommended:

By accelerating the rate of economic growth, more job opportunities can be generated across different sectors, thereby absorbing the workforce effectively.
Emphasising on sectors that are relatively more labour-intensive can facilitate faster employment generation. The rapid growth in these sectors is likely to absorb a significant portion of the workforce.
It is essential to enhance the functioning of labour markets by making necessary modifications without compromising on core labour standards. This includes ensuring fair wages, safe working conditions, and protection of workers’ rights.
Developing specific sectors and sub-sectors with growing demand, such as trade, restaurants and hotels, transport, construction, repairs, and certain services, can create additional non-farm employment opportunities. This diversification can reduce dependency on agriculture for livelihoods.
Efforts should be made to ensure that the “net take-home income” of farmers is comparable to that of civil servants. This implies implementing policies and mechanisms to enhance farmers’ income levels, thereby improving their livelihoods and economic status.

Bioresources Rural communities in India rely heavily on a diverse array of bioresources to meet their nutritional needs and ensure livelihood security. The report offers several recommendations to support sustainable management and utilisation of these bioresources. Some of them are as follows:

The report emphasises the importance of safeguarding traditional rights of access to biodiversity like ensuring access to non-timber forest products such as medicinal plants, gums, resins, oil-yielding plants, and beneficial micro-organisms. By preserving these rights, rural communities can continue to benefit from the rich biodiversity around them.
It highlights the need for conserving, enhancing, and improving agricultural crops, farm animals, and fish stocks through breeding programmes. Suitable measures should be taken to maintain genetic diversity, improve desirable traits, and enhance productivity to meet the evolving needs of rural communities.
It encourages the adoption of community-based approaches to breed conservation, wherein conservation efforts are integrated with sustainable utilisation practices. This approach, often referred to as conservation through use, will ensure the active participation of local communities in the conservation process while benefiting from the sustainable management of biodiversity resources.
It recommends facilitating the export of indigenous breeds and the import of suitable breeds to enhance the productivity of non-descript animals. This strategy aims to capitalise on the inherent strengths of indigenous breeds while also leveraging the genetic potential of imported breeds to improve overall productivity and resilience in livestock farming.

Conclusion

The NCF Report is an extensive document comprising most of the topics related to farming, farmers, and the overall development of the country. Apart from the recommendations mentioned above, many other recommendations were made related to credit, insurance, technological advancements, market intervention, the competitiveness of farmers with respect to other countries, bioresources, and employment in the agriculture sector.

A considerable amount of these recommendations have been implemented; however, still many are to be implemented. Some of the important and path-breaking policies like the PDS, soil health card, kisan credit card to women, SHGs to help farmers and organisations, and provision of insurance have been implemented.

The commission has specially mentioned that the effect of the Green Revolution has been waning and that there is a need for an Evergreen Revolution with the help of technology. The Green Revolution has reached its peak with high yielding variety (HYV) seeds and fertilisers. The productivity increase has been huge, but it reached the saturation point in the early 2000s and has been decreasing afterwards. So, with the help of technology and research, it is important that the soil should be studied and based on that, suitable crops for each season, soil, and region, and irrigation must be suggested to farmers. Though the livestock sector has been booming, it is important that the problems in farming should be addressed to provide a long-term solution. With the key findings and the recommendations of this report being relevant even today, it is important that a new commission be constituted to review, update, and add to these findings.