It is possible to increase the income of farmers through planned development of dairy sector

- Corona has provided an opportunity for the development of the processed foods industry in the country

The credit for everything that India's economy survived in the Corona era last financial year goes to the agricultural sector. Even amid the Corona epidemic, the country's agriculture and allied sector growth rate is projected at 6.50 per cent. Even amid the epidemic, farmers sowed vigorously last year. Due to good monsoon in the country for the last two-three years, the performance of agriculture and allied sectors is showing good performance. Given that the strategy of increasing farmers 'income by increasing agricultural production has failed many times before, the present government is relying on increasing agricultural production, increasing budget allocation, higher support prices and procurement of agricultural commodities to double farmers' income.

In the budget for the financial year 2016-17, an allocation of Rs. 216.50 crore was made for the agriculture sector which has been increased by 2.50 times to Rs. 1,2,013.8 crore in the financial year 2021-2, i.e. in the current financial year. The present government is also claiming that the increase in agricultural production will increase the income of farmers. The government raises support prices based on the cost of agricultural production. But farmers are questioning the government's formula for calculating costs. Farmers are claiming that the original cost is much higher than the cost calculated by the government in its formula. The government has taken steps like crop insurance scheme, cheap institutional lending, farmer producer companies and promotion of organic farming so as not to hurt the income of farmers. However, the government is not in a position to say with confidence that farmers' income has doubled as compared to 2014. Agricultural organizations are claiming that the income of farmers is not increasing due to the government's frequent interventions in the agricultural sector and erroneous policies.

The minimum support price is announced by the government every year to ensure that farmers get a fair price for their crops and that more and more crops are harvested. Support prices are announced for 6 crops including Kharif and Ravi, but in fact, only rice and wheat are procured at support prices. In the case of other crops, farmers are forced to sell their produce through intermediaries or at the price they get in the open market. An estimated Rs 15 lakh crore could be a burden on the exchequer if full purchases are made at the support price of each crop. Given this fact, the government is believed to be avoiding buying every crop. While the government is well aware that providing support to farmers can be a huge burden on the country's economy, it has become a regular norm for political parties to make popular advertisements for farmers, the absence of which ultimately invites peasant movements. To alleviate its burden, the government has made provision for selling goods outside the APMC to farmers through three agricultural bills, but the farmers are not welcoming the government's arrangement and are currently agitating.

A recent report expressed confidence that the corona epidemic in the country would provide a growth opportunity for the country’s food processing industry. Second and third tier cities, like metros, have seen an increase in purchases of processed foods. In the Corona era, even in small towns, more and more people are adopting the work from home method.

The market estimates that the food processing market size, which was 3 billion in 2020, will reach 50 billion by 203. Demand for this specialty has grown significantly as a result of recent corporate scandals. Adequate cold storage facilities, digitized supply chain and smart warehousing system are essential for the development of food processing industry. But in the absence of modern cold storage system in the country, maintenance of perishable agricultural products remains a challenge. Digitized supply chain and cold storage system can prevent wastage of agricultural produce.

In addition to agriculture, development of allied sectors is also required to increase the income of farmers. The dairy sector has been a major contributor to the growth of rural wealth. The dairy sector is still a part of agriculture, but in a different way, the dairy sector has lagged behind agriculture in terms of development over the last few years. While the growth rate of the agricultural sector has been 7.50 per cent during this period, the growth rate of the dairy industry is more than five per cent. The total income of rural households is increasing through milk trade. The dairy sector has played a role in the socio-economic development of our country. In such a situation, it is necessary to increase the development of the dairy sector in the country so that the income of the country's peasantry increases and they are not forced to agitate on the issue of income.

Having a competent supply chain is essential for the development of the dairy sector. The supply chain can only be strengthened if the emphasis is on expanding and improving processing capacity and reducing milk production costs.