India may no longer be an agriculture-dominated economy, but agriculture remains central to rural livelihoods. While agriculture contributes around 15-18% of GDP, it still employs about 46% of India’s workforce. This creates a gap between agriculture’s contribution to the economy and its importance for employment and livelihoods. The recommendations of the National Commission on Farmers (NCF), chaired by M. S. Swaminathan, therefore remain relevant, particularly on farmer income, risk, sustainability and market access.

Why in News?

The birth centenary of M. S. Swaminathan has renewed attention on the National Commission on Farmers' recommendations.

  • Agriculture continues to support a large share of India’s workforce.
  • Around 86% of farmers own less than two hectares.
  • Around half of farmed land depends entirely on rainfall.
  • Climate change is increasing risks from droughts, floods, heat waves, and erratic rainfall.
  • Rising costs of seeds, fertilisers, pesticides and fuel are putting pressure on farm incomes.

Structural Challenges in Indian Agriculture

Small landholdings make it difficult for farmers to achieve economies of scale, diversify crops and adopt new technologies. Water availability is another major concern, with rainfed agriculture exposed to uncertain monsoons while intensive irrigation is contributing to groundwater depletion in some regions.

  • Small landholdings: About 86% of farmers own less than two hectares.
  • Rain dependence: Around half of farmed land depends entirely on rainfall.
  • Groundwater depletion: Intensive irrigation is putting pressure on groundwater resources.
  • Climate risks: Extreme weather events are increasingly affecting crop production.
  • High input costs: Rising costs reduce farmers’ margins.
  • Weak value chains: Farmers often receive only a small share of the final value of their produce.
  • Inadequate storage, processing and transportation further weakens farmers’ bargaining power.

What the National Commission on Farmers Got Right

The NCF viewed agricultural distress primarily as an income and livelihood problem, rather than simply a productivity problem. It argued that agricultural policy should focus on the economic well-being of farmers. The Commission therefore looked beyond land ownership and emphasised access to water, credit, technology, livestock, fisheries and other productive resources. The focus was on:

  • Greater connection between research institutions and farmers.
  • Better access to productive resources.
  • Focus on farmer income and livelihood security.
  • Integration of agriculture with allied activities and rural enterprises.

Watch : Revisiting the Farmer Question

Focus on Ecological Sustainability

The NCF recognised that increasing productivity should not come at the cost of soil health and water security. Sustainable use of natural resources was therefore an important part of its approach.

  • Efficient use of water resources.
  • Sustainable farming practices.
  • Conservation of natural resources.
  • Protection of soil health.

Strengthening Farmers in the Value Chain

The NCF recognised that farmers often have weak bargaining power because of fragmented supply chains and inadequate infrastructure. It proposed stronger links between production, markets and rural industries.

Key measures included:

  • District-level agricultural infrastructure.
  • Direct marketing linkages.
  • Better storage, grading and packaging.
  • Improved processing and transportation.
  • Stronger integration between agriculture and rural industries.

Beyond Crop Cultivation

The NCF proposed a broader livelihood-security framework rather than depending only on crop cultivation. It recognised the importance of allied activities and non-farm employment in improving rural incomes.

This includes:

  • Livestock
  • Fisheries
  • Rural enterprises
  • Non-farm employment
  • Diversification of rural livelihoods

Why the NCF Remains Relevant Today

Several NCF recommendations have been implemented through different schemes and missions. However, its broader vision of making farming economically viable, reducing risks, and strengthening farmers’ bargaining power has not been implemented as one integrated framework. The agricultural sector has also changed significantly since the NCF recommendations, with new challenges emerging from:

  • Climate change
  • Technological change
  • Rural migration
  • Growing importance of agricultural value chains
  • Greater integration with global markets

Agriculture and Global Markets

Indian agriculture cannot remain completely insulated from global markets. At the same time, small farmers can face greater risks if they are exposed to global competition without adequate safeguards. The challenge is therefore to combine market integration with risk protection. Important measures include:

  • Remunerative prices
  • Risk management
  • Farmer aggregation
  • Productivity improvement
  • Value addition
  • Carefully designed trade safeguards

From MSP-Centric Thinking to Income-Risk Management

Agricultural policy needs to look beyond production and yield and focus more directly on net farm income, risk management, and the question of MSP.A key concern is whether income support for farmers can provide greater financial security than a pricing system that is delinked from market demand. A balanced approach should consider MSP, market prices, input costs, productivity, crop diversification, and sustainable farm incomes to address the long-term challenges faced by Indian farmers. A broader framework can combine:

  • Minimum Support Price (MSP)
  • Crop insurance
  • Income support
  • Irrigation
  • Affordable credit
  • Storage and processing
  • Market linkages

The focus should be on net farm income per household, rather than measuring agricultural progress only through production per hectare.

Way Forward

The NCF recommendations should not be reproduced mechanically. They need to be updated according to present challenges such as climate stress, technological change, migration and global market integration. The broader objective should be to make agriculture economically viable, environmentally sustainable and better connected with markets, while improving farmers’ ability to manage risks.

Conclusion

The National Commission on Farmers placed farmer income, livelihood security, sustainability and bargaining power at the centre of agricultural policy. Current challenges such as climate change, rising input costs, weak value chains and global market exposure make these concerns relevant today. Revisiting and updating the NCF framework can help shift agricultural policy from a narrow focus on production towards income security, risk management and sustainable rural livelihoods.