Unit 6: Future Outlook and Support Systems

1. Government Schemes and Programs

Agriculture and allied sectors form the backbone of the rural economy. To support farming-based livelihoods, governments at both the Central and State levels have instituted various schemes focusing on income support, risk management, infrastructure, and marketing.

A. Central Government Schemes (India)

1. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

• Objective: To provide income support to all landholding farmer families.
• Mechanism: Direct Benefit Transfer (DBT) of ₹6,000 per year in three equal installments.
• Impact: Provides liquidity for agricultural inputs and domestic needs, reducing reliance on informal moneylenders.

2. Pradhan Mantri Fasal Bima Yojana (PMFBY)

• Objective: Crop insurance scheme to provide financial support to farmers suffering crop loss/damage arising from unforeseen events.
• Key Features:
  • Uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops.
  • Use of technology (drones, smartphones) for faster claim settlement.

3. Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)

• Motto: "Har Khet Ko Pani" (Water to every field) and "More Crop Per Drop."
• Focus: Expanding cultivable areas under assured irrigation, improving on-farm water use efficiency, and promoting precision irrigation (drip and sprinkler).

4. Kisan Credit Card (KCC) Scheme

• Objective: To provide adequate and timely credit support from the banking system under a single window with flexible and simplified procedures.
• Scope: Covers short-term credit requirements for cultivation, post-harvest expenses, and consumption requirements of farmer households. Recently extended to Animal Husbandry and Fisheries.

5. National Agriculture Market (e-NAM)

• Objective: A pan-India electronic trading portal that networks the existing APMC mandis to create a unified national market for agricultural commodities.
• Benefit: Promotes real-time price discovery and transparency in the auction process.

6. Soil Health Card Scheme

• Objective: To issue soil health cards to farmers every two years to address nutritional deficiencies in fertilization practices.

B. State Government Schemes (Examples)

State schemes often tailor support to specific regional climatic conditions and crop patterns.

• Rythu Bandhu (Telangana): An investment support scheme providing financial assistance per acre per season to support farm investment (seeds, fertilizers, pesticides).
• KALIA Scheme (Odisha): Krushak Assistance for Livelihood and Income Augmentation. Covers landless agricultural households for livelihood support, unlike many central schemes that require land titles.
• Bhavantar Bhugtan Yojana (Madhya Pradesh): A price deficiency payment scheme where the government pays farmers the difference between the official Minimum Support Price (MSP) and the modal price if crops are sold below MSP.
• YSR Rythu Bharosa (Andhra Pradesh): Offers financial assistance to farmers, including tenant farmers, along with interest-free loans.

2. Role of Public and Private Organizations in Livelihood Promotion

Livelihood promotion requires a multi-stakeholder approach involving research, extension, funding, and market linkage.

A. Public Sector Organizations

1. Indian Council of Agricultural Research (ICAR)

• Role: The apex body for coordinating, guiding, and managing research and education in agriculture.
• Function: Develops high-yielding varieties, climate-resilient technologies, and farming protocols.

2. National Bank for Agriculture and Rural Development (NABARD)

• Role: Apex development financial institution.
• Function: Provides refinance support for building rural infrastructure, prepares district-level credit plans, and supports Self Help Groups (SHGs) through the SHG-Bank Linkage Programme.

3. Krishi Vigyan Kendras (KVKs)

• Role: Farm science centers functioning as knowledge hubs.
• Function: Technology assessment and demonstration for wider application and capacity development (training) of farmers.

4. Agricultural Technology Management Agency (ATMA)

• Role: A society of key stakeholders at the district level for sustainable agriculture development.
• Function: Decentralizes the extension system and integrates research with extension activities.

B. Private Sector and Civil Society Organizations

1. Non-Governmental Organizations (NGOs)

• Role: Grassroots implementation and social mobilization.
• Contribution: NGOs (e.g., PRADAN, BAIF) work on community organization, natural resource management, and connecting marginalized farmers to markets.

2. Farmer Producer Organizations (FPOs)

• Role: Collectivization of small and marginal farmers.
• Contribution: Increases bargaining power, lowers input costs through bulk purchase, and enables aggregation of produce for better market prices.

3. Agribusiness Corporations

• Role: Value chain integration.
• Contribution: Through contract farming, private companies provide inputs and technical advice in exchange for guaranteed procurement. They are crucial for food processing and export linkages.

4. Microfinance Institutions (MFIs)

• Role: Last-mile credit delivery.
• Contribution: Providing small loans to rural households who lack collateral for traditional bank loans, often focusing on women's livelihoods in livestock and small-scale agri-processing.

3. Role of Farming-Based Livelihoods in the 21st Century

The agricultural sector is undergoing a paradigm shift from a production-centric model to a sustainability and income-centric model.

A. Circular Economy in Agriculture

The circular economy aims to minimize waste and make the most of resources. It moves away from the linear "take-make-dispose" model.

• Biomass Utilization: Converting crop residue (stubble) into bio-energy, briquettes, or packaging material instead of burning it.
• Integrated Farming Systems (IFS): Waste from one enterprise becomes input for another.
  • Example: Cattle dung is used for biogas (energy) and slurry (manure) for crops; crop residues feed the cattle.
• Nutrient Recovery: Extracting phosphorus and nitrogen from wastewater/sludge for reuse as fertilizer.
• Economic Impact: Turns waste management costs into revenue streams, enhancing livelihood sustainability.

B. Green Economy

A green economy results in improved human well-being and social equity while significantly reducing environmental risks and ecological scarcities.

• Renewable Energy Integration:
  • Solar Pumps (PM-KUSUM Scheme): Farmers generate solar power for irrigation and sell surplus to the grid.
• Organic and Natural Farming: Reducing dependency on synthetic chemical inputs (fertilizers/pesticides) to protect soil biodiversity and water tables.
• Agroforestry: Integrating trees into farmlands to sequester carbon, improve soil health, and provide timber/fruit income.
• Eco-Tourism: Leveraging green farms for tourism, creating alternative revenue streams.

C. Climate Change Adaptation

With increasing extreme weather events, adaptation is crucial for survival.

• Climate-Smart Agriculture (CSA):
  • Resilient Varieties: Using drought-tolerant, flood-resistant, and heat-tolerant seed varieties.
  • Resource Conservation Technologies: Zero-tillage, laser land leveling, and direct-seeded rice (DSR).
• Water Management: Shift towards micro-irrigation and rain-water harvesting (farm ponds).
• Weather Forecasting: Usage of meteorological data to plan sowing and harvesting cycles to avoid weather shocks.

D. Digitalization (Agri-Tech)

The "Fourth Agricultural Revolution" is driven by data and AI.

• Precision Agriculture: Use of IoT sensors, drones, and satellite imagery to monitor crop health, soil moisture, and pest infestation in real-time. This optimizes input use and maximizes yield.
• Digital Marketplaces: Platforms connecting farmers directly to retailers and consumers (B2B, B2C), eliminating middlemen (e.g., DeHaat, Ninjacart).
• Fintech in Agri: Digital lending platforms using satellite data to assess creditworthiness rather than relying on land documents alone.
• Blockchain: Ensuring traceability from farm to fork, which is essential for export markets and premium pricing for organic produce.

E. Changing Lifestyle Patterns and Livelihoods

Consumer behavior is shifting, influencing what farmers grow and how they earn.

• Health Consciousness: Increased global demand for "Superfoods" like Millets (Nutri-cereals), Quinoa, and Chia. India's push for the "International Year of Millets" is a prime example.
• Farm-to-Fork Movement: Urban consumers prefer buying directly from farmers to ensure freshness and lack of chemical residue. This supports Community Supported Agriculture (CSA) models.
• Urban Farming: Rise of hydroponics, vertical farming, and rooftop gardening in cities creates new livelihood niches for agri-entrepreneurs.
• Demand for Processed Food: Shift from raw commodity selling to value-added products (e.g., selling tomato ketchup instead of tomatoes), which significantly increases farm income.