Providing Better linkages and Reducing risks for the farmer

As the government committed itself to double the farmer’s income by 2022, the concept of farmers income has taken the centre stage in policymaking. This marks a departure from the age-old tradition wherein farm output was at the centre stage.

Steps taken by the government for providing better linkages and reducing risks for the farmer

  • eNAM

eNAM is an electronic national agriculture market which connects all regulated wholesale produce markets through a pan-India trading portal.

The effectiveness of the eNAM is dependent on the participation of traders from APMC mandis, who are resisting any initiative that lessens their price-setting power.

  • Farmer producer organisations

Farmer producer organisations (FPOs) provide better bargaining power to farmers through aggregation and standardisation of their produce, leading to better realisations.

But lack of management bandwidth and expertise has limited the potential of FPOs.

  • Risk Management

The government has introduced the Pradhan Mantri Fasal Bima Yojana (PMFBY), a more comprehensive and farmer-friendly scheme where the premium is largely borne by the Government.

PMFBY is still a work in progress. It is yet to expand its ambit beyond the loanee farmers in significant terms.

  • Agricultural Marketing & Farm Friendly Reforms Index

Policy think tank Niti Aayog has launched an index to rank States and UTs that is based on the implementation of seven provisions proposed under the model APMC Act.

But the states ruled by opposition parties are hesitant toward partnering Niti Aayog. These states see Niti Aayog as an arm of the central government to impose itself on states.


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