HOW TO INCREASE THE INCOME OF LIVESTOCK FARMER’S IN INDIA?

HOW TO INCREASE THE INCOME OF LIVESTOCK FARMER’S IN INDIA?

Dr. SudhanyaNath

PhD Scholar, Department of Animal Nutrition, West Bengal University of Animal & Fishery Sciences (WBUAFS), Kolkata, West Bengal – 700037
Email ID:sudhanyanath@yahoo.com
Mobile No.: +91 9438672482

Abstract

The livestock sector is an important agricultural sub-sector of the Indian economy. For most of the farmers, it forms an important livelihood activity, supporting agriculture in the form of necessary inputs, contributing to household health and nutrition, supplementing incomes, providing job opportunities, and ultimately becoming a secure ‘hooves fund’ at the times of need. Restructuring livestock processes and policy measures are important to boost farmers’ incomes through the livestock sector in real terms. Fundamentally, farmers’ yields can be improved by increasing their gross profits, reducing costs and stabilizing their income. To increase income through productivity growth, an integrated and diversified farming system, better realization of market prices and specific policy measures are required.Four essential pillars that are vital for the implementation of strategies are technology, organizations, infrastructure and incentive structure. Policy based on livestock should be based on the principles of social acceptability, economic feasibility, technological viability and capacity to preserve resource. To double the income of the farmer, increasing income by improving productivity along with stabilizing income and risk management through a holistic approach is essential.

Keywords: Livestock sector, Farmers’ income,Agriculture, Diversified Farming, Specific Policy

INTRODUCTION:

Livestock production and agriculture are intrinsically linked, each being dependent on the other, and both crucial for overall food security. Livestock also serves as an insurance substitute, especially for poor rural households; it can easily be sold during time of distress. Animal husbandry promotes gender equity. Around 57% of the total working population and about 73% of the rural labour force are engaged in the agricultural sector.Livestock employed 8.8% of the agricultural work force albeit it varied widely from 3% in North-Eastern states to40- 48% in Punjab and Haryana. The only sources of data on farmers’ income are NSSO’s Situation Survey 2002–03 and 2012–13. The average monthly income per capita from farming increased from Rs. 1,060 in 2003 to Rs. 3,844 in 2013, a compounded annual income growth rate of 13.7%. A 15% compounded income growth rate will be needed to double farmers’ income by 2022, which is a slight improvement over the increase achieved from 2003 to 2013. However, on the basis of the GDP deflator, real farmers’ income was estimated, showing a real growth rate of 5.24%.If the more suitable index, the Consumer Price Index for Agricultural Labourers, is used the annual growth rate of real income for farmers falls to 3.5%. With this growth rate farmers’ income will double within 20 years. Therefore, there is a need for much greater effort and concentrated attention to achieve the objective of doubling the income of farmers in 6 years.

NEED OF DOUBLING FARMER’S INCOME:

The agricultural sector growth policy in India concentratesmainly on rising agricultural production and improving food security. This can be achieved by increasing production through advanced technologies; increasing use of quality seeds, fertilisers, irrigation and agrochemicals; introducing incentive structure in the form of remunerative markets for some crops and agricultural inputs. India’s food production has multiplied 3.7 times since the adoption of the green movement in the last half a century (1965 to 2015), while the population has multiplied by 2.55 times. The net result was a 45% rise in food production per person, which made India not only food self-sufficient at the aggregate level, but also a net exporting country for food.

The calibrated focus of this year’s Union budget is on the agriculture sectors with pinpointed actions, which aims at doubling farmers’ income, apart from other far-reaching reforms were highly encouraging. The allocation of Rs.1.6 lakh crore for agriculture, irrigation and allied activities in the budget aims at giving a mega boost to revive the farm sector, increase farm incomes, enhance consumption demand and energise the Indian economy. In addition, during the last few years, a plethora of schemes and initiatives have been announced by the government with the aim of development of the agriculture sector and doubling farmers’ income. A few of the major schemes are soil health card scheme, launch of a pan-India electronic trading platform under the National Agriculture Market (NAM), Pradhan Mantri Fasal BimaYojana, Pradhan Mantri Krishi Sinchai Yojana (PMKSY), dedicated online interface e-Krishi Samvad, favourable taxation treatment to Farmer Producers Organisations (FPQs), Micro-Irrigation Fund (MIF) and schemes for livestock and fishermen, among others.

There is a need to enhance liquidity support for the farmers as well as agro processing industries. Measures should be in the form of direct benefit transfers wherever feasible. Interest subvention of 4% for a period of 12 months should be provided against working capital requirement for agro processing/food processors/food parks. Immediate reduction of 4% in GST slabs for all products of agro processing/processed food manufacturers is required for mitigating the impact of pandemic COVID-19 on farmers and agriculture sector. Also, there is a need to push the growth trajectory of the sector, thereby supporting farm incomes.

ROLE OF LIVESTOCK SECTOR:

In National Income:

Livestock and poultry sectors contributed 4.1 and 0.9%, respectively to the national economy in terms of Gross Domestic Product (GDP). Agriculture and allied sector contributed about 18.1% to the total GDP. Out of the total agricultural GDP, livestock sector contributed about 28.7% in terms of Rs.7, 33,054 crores during 2015-16 (CSO, 2015-16 and DAHDF, 2015-16). On an average per year, average value of livestock products are nearly 1% of total export earnings and 6 % of agricultural export earnings (Kumar et al., 2008). Meat and meat products are the main livestock products exported, accounting for above 90% of total export earnings from the livestock sector.

In Farmer’s Income:

Farmers earn from various sources such as crop cultivation, horticulture, dairy, poultry, fisheries, other allied activities, non-farm activities, and wage employment. During the last 30 years, the income disparity between farmers and non-farmers has increased. In 1983–84 the average income of a farm household used to be about a third of that of a non-farm household. By the year 2004–05, this statistic had reduced to one-fourth. Livestock has been an important source of livelihood for small farmers. They contributed about 16% to their income, more so in states like Gujarat (24.4%), Haryana (24.2%), Punjab (20.2%) and Bihar (18.7%) (Planning Commission, 2012).

CHALLENGES FACED BY LIVESTOCK SECTOR TO DOUBLE FARMER’S INCOME:

• Difficulty in improving productivity in a huge population of low-producing animals –The average annual milk yield of Indian cattle is 1172 kg which is only about 50% of the global average. Likewise the meat yield of most species is 20-60% lower than the world average.
• Deficit of fodder – Currently, the deficit ofdry fodder, concentrates and green fodder is 10, 33 and 35%, respectively. Only 25% of forage seeds are available which are of 15-20 years old varieties. Nearly 4% of total cultivated area utilized for fodder production is nearly constant from last three decades.
• Insufficient prophylactic vaccination and deworming – Frequent outbreaks of diseases like FMD, BQ, PPR, Brucellosis, Swine fever and Avian Influenza etc. continue to reduce productivity and production.
• Lack of veterinary support– Infrastructure (for hospitals and diagnostic labs) and technical manpower are insufficient. Organized slaughtering facilities are also inadequate.
• Insufficient funding, subsidy and bank loan– Livestock sector receives only about 12% of the total public expenditure on agriculture and allied sectors and about 4-5% of the total institutional credit flowing to agriculture and allied sectors
• Insufficient Livestock insurance coverage- Only 6% of the animal heads are provided insurance cover.
• Negligence to Livestock extension- Only about 5% of the farm households in India access information on livestock against 40.4% for crop farming.
• Lack of access to organized markets– Informal market intermediaries often exploit the producers.

 RECOMMENDATIONS TO DOUBLE FARMER’S INCOME THROUGH LIVESTOCK SECTOR:

• Crossbreeding, Upgrading and Selective breeding are the most effective way for improving productivityin a huge population of low-producing animals. Distribution of improved bulls can be practiced in remote areas where A.I. facility is not available.
• ‘National Dairy Plan’ (NDP) should be implemented as a National Project.
• Fodder Development Program along with fodder bank should be designed in every district.
• There should be effective immunization for important economic diseases and compulsory deworming programme.
• Building up of dairy cooperative network like AMUL, URMUL etc. with value-added products formation will fetch higher price.
• Milk should be tested for safety and quality parameters at the collection centres to get higher price. Establishment offood testing laboratories duly accredited by the Food Safety and Standards Authority of India (FSSAI) to check adulteration is essential.
• There should be organized slaughtering facilities so that inedible offal and animal wastes from the meat plant can be used as valuable proteins/materials for export.
• Value addition of livestock by-products,Organic Food Program and Organic livestock and poultry farmingshould be strengthened to increase profitability.
• Innovative and acceptable Livestock insurance models may be designed to evolve a suitable scheme for various species.
• Building up an exclusive cadre of livestock extension workers, establishment of KVKs exclusively for livestock activities and strengthening ATMA with AH experts will aid in net income of farmers.
• Livestock economics, business management and market intelligence should be strengthened.
• Implementing ambitious Agribusiness Hubs and establishing Special Livestock Zones (SLZ) Model like AMUL for milk production and Namakkal model for poultry production all over the country.
• ICT-based agricultural extension brings incredible opportunities and has the potential of enabling the empowerment of farming communities.
• Adopting Integrated and diversified Farming System like duck cum rice farming, duck cum fish farming etc. can uplift the farmers’ income.
• Upward push in minimum support price (MSP) in favour of proposed diversification livestock products will be better market price realization.

PROSPECTS OF DOUBLING FARMERS’ INCOME:

The cumulative influence of seven possible growth sources is 75.1 per cent in 7 years and 107.5% in 10 years, respectively.If the factors underlying growth in farmers’ income, exceptprice factor, rise at the same rate as experienced between 2001 and 2014, farmers’ incomewill rise by 66% by 2022-23 and it will almost double in ten years.Karnataka’s experience has shown that the use of simple digital technology to auction farms using an electronic platform and simple market reforms can increase farmers’ price realization by 13.4% in a short period.When this factor is applied to the other sources of farmers’ income growth, the increase is 75.1% in 7 years and 107.5% in 10 years. If growth in factors affecting the income of farmers is sustained at the pace seen over ten years or so before 2014, then the income of farmers is projected to double in 10 years.If this objective is to be achieved by 2022-23, growth sources will have to accelerate by 33% and will require additional contribution from higher price realization by farmers through various market reforms such as National Agriculture Market (e-NAM) and the implementation of different provisions of the APMC (Agricultural Produce Market Committee) Model Act.

CONCLUSION:

The persistent low income of farmers may have a significant adverse impact on the future of the country’s agriculture.Over time, this distress is spreading and becoming serious, affecting almost half of the country’s population that depends on subsistence farming.Adequate attention needs to be paid for improving the welfare of farmers and growing agricultural income in order to secure the future of agriculture and to improve the livelihood. Achieving this objective would reduce the persistent gap between farm and non-farm income, alleviate agrarian distress, encourage inclusive growth and stimulate agricultural dynamism.Doubling the income of farmers by 2022 is very demanding, but it is important. In order to achieve the target, the rate of increase in the underlying sources of output growth needs to be accelerated by 33%. The nation needs to increase the use of quality agricultural seeds, fertilizers and power supplies by 12.8%, 4.4% and 7.6% per year. The irrigated area is to be expanded by 1.78 million hectares and the double cropped area is to be increased by 1.85 million hectares each year.In addition, the fruit and vegetable area needs to increase by 5% per year. In the case of livestock, the possible causes of growth are improved herd efficiency, better nutrition, increased artificial insemination, decreased calving periods, decreased age at first calving, genetic improvement of poor yielding livestock through crossbreeding, upgrading and selective breeding, economic feeding practices, proper health care and management practices.

REFERENCES:

• Ahmad, S. F., Amarsdegp, S., Richa, A., &Gurpreet, K. (2018). Role of livestock in doubling the farmer’s income-national perspective and the way forward. North-East Veterinarian, 18(1), 3-6.
• Chand, R. (2017). Doubling Farmers’ Income Rationale, Srategy, Prospects and Action Plan.
• Dinani, O. P., Tyagi, P. K., Giri, A. K., &Popat, D. S. (2018). Role of Livestock in Doubling The Farmers Income–National Perspective and The Way Forward.  J. Sci. Environ., 7, 496-504.
• https://www.theweek.in/news/biz-tech/2020/08/11/opinion-doubling-of-farmers-income-the-core-of-centres-agri-push.html
• Planning Commission. (2012). Report of the Working Group on Animal Husbandry and Dairying for the Twelfth Five Year Plan 2012–2017, New Delhi.
• Singh, P., &Kumari, B. (2017). Importance of livestock sector in doubling farmers Income by 2022. Indian Journal of Economics and Development, 13(2a), 136-140.

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