et’s begin with a few facts. Agriculture is still a critical pillar of the Indian economy. Despite a steady fall in the numbers over the decades, it still engages 43 percent of the employed workforce. Small holders — those owning less than 2 hectares of land, compared to 2-10 ha for medium holders and more than 10 ha for large holders — who account for 86 percent of all farmers in India, are some of the poorest people in the country, earning only 39 percent of what medium holders earn, and only 13 percent of what large holders make. Almost 50 percent of India’s population consists of small farmers and their families. Studies show that children in small farmer households have extremely low levels of schooling and that there are significant difference between boys and girls.

Let’s now look at another set of related facts. An average agricultural household in India has debt equivalent to 60 percent of their annual income. According to the survey, 50.2 percent of agricultural households in India are in debt.

All India Debt and Investment Survey, 2019, shows that 44 percent of agricultural households access non-institutional (informal) sources of credit that charge exorbitant interest rates - as high as 25 percent.

315,000 farmers took their own lives between 1995 and 2018, as the National Crime Records Bureau data shows. Between 2017 and 2021, nearly 53,000 persons engaged in the farming sector died by suicide.

All this has happened against a backdrop of the past 25 years, where the cost of production has risen steeply — seeds, fertilisers, pesticides, diesel oil and other farm inputs controlled by large private corporates have shot up, causing annual inflation of 10 percent. However, the minimum support price (MSP) of food grains has grown at less than half that rate annually, leading to a steady fall in farm incomes.

This is the crux of the current battle being led by the farmers in India, particularly from the Punjab and Haryana. It also underscores a crucial battle for economic survival and fairness in the agricultural sector.

At the heart of this protest are the key demands of farmers, including the legalisation of MSP for their crops. The history of farm-based reforms is rooted in the backdrop of agricultural crisis in the 1960s with the onset of a series of measures undertaken by the government of India which included setting up of Food Corporation of India whose mandate included maintaining a reasonable price to ensure people from all classes can buy those, purchasing grains from farmers who have a surplus at a standardised price in order to avoid mismanagement, save them from the vagaries of the fluctuating market and the middlemen.

The promulgation of MSP and other related institutions like authorised mandis came in that backdrop. Other aspects of those reforms were land reforms (which mainly ended up benefitting middle peasants and tenants) and the famed Green Revolution, making India self-sufficient in grain production, eliminating the crisis of hunger for a large part of India. The Green Revolution remained confined mainly to the Punjab, Haryana, western Uttar Pradesh and some other related states.

The MSP, in principle agreed for 23 crops, remained limited to wheat, rice and sugarcane, once again benefitting a small section of the peasantry. The larger failure of land reforms resulted in fragmentation of land and limited outreach of authorised markets and continued prevalence of the informal middlemen. A large portion of wheat and rice continued to be sold in the open market.

Over the years, this has had multiple effects. More and more farmers have moved to environmentally unsustainable water intensive cropping of rice, wheat and sugarcane and cash crops like cotton, leading to high fluctuations in the market making even the previously secure middle and rich peasants vulnerable.

This worsening situation came to a brink when in 2020 the government attempted to ‘liberalise’ the grain market by allowing the entry of private players alongside authorised mandis. This sparked massive protests as the farmers, especially those who had benefited from an established MSP and authorised mandis, clearly saw this as a dangerous move to put them at the mercy of the big African corporations.

Sustained and fierce protests eventually led to the withdrawal of the proposed bills. The farmers continued to press for a legalisation of the MSP as their right (rather than a government policy). They did withdraw from their agitation at that time but have now come back with a vengeance as things have further worsened for the agricultural sector which has seen many more people forced to go back to farming due to loss of livelihoods in other sectors.

The MSP protection, especially in regions like the Punjab, Haryana and western Uttar Pradesh, is perceived as a lifeline for farmers struggling to sustain their livelihoods. Critics argue that extending the MSP to other crops and maintaining the current system would shield inefficiency in farming.

However, this argument overlooks the crucial role the MSP plays in providing farmers with a level playing field, ensuring their economic viability and meeting consumer demands. Moreover, the diversification of crops under the MSP will promote environmentally sustainable farming practices, reducing the over-reliance on wheat and rice production.

Contrary to the notion of market efficiency, governments worldwide, including those in the USA and Europe, provide subsidies and support their agricultural sectors. In recent years, farmers have rebelled there too against the attempt towards large scale corporatisation. An acknowledgment of the inherent challenges in farming is crucial for maintaining food sufficiency and security. The difference lies in ensuring that these benefits reach the farmers, rather than being syphoned off by intermediaries.

The current agitation by farmers is virtually a last ditch battle to safeguard their livelihoods against the encroachment of corporate interests and government policies that threaten their economic stability. It’s imperative for policymakers to heed their demands and enact policies that prioritise the welfare of farmers, ensure fair pricing for their produce and promote sustainable agricultural practices.

Generations of classrooms in post-independence India reverberated with the cliched statement like Bharat ek Krishi-pradhan desh hai (India is primarily a farming country). While this may not be the reality today in terms of its contribution to the national GDP, the fact that it still employs the largest number of people says something about not just the lack of options for people to diversify their livelihood options, but the continuing primacy of agriculture in the country even today.

The ongoing farmers’ agitation in India is not merely a protest against the so-called market reforms with a vision to oust people from agriculture and make them migrant labourers. It is a struggle for survival and fairness in an agricultural system plagued by inequity and exploitation. By addressing the concerns of these farmers and extending the MSP to a broader range of crops, India can chart a path towards inclusive growth, food security and sustainable development in its agricultural sector.

The writer has been in the development sector for more than a decade and currently works with an international non-governmental organisation based in Delhi. He may be reached at: avinashcold@gmail.com.