Small farmers in India: challenges and routes to prosperity
Why in the news
An analysis explored how small farmers can turn into empowered agripreneurs using post-COVID openings and reforms tied to the SDGs.
Challenges
- Small holdings (under 2 ha) and rain-fed risk.
- Market exploitation: only 7% reach MSP; middlemen dominate.
- Credit gaps: informal loans cause debt traps.
- Little voice in policy; subsidy dependence.
Opportunities and shifts
- Digital markets (e-NAM, AgriBazaar, Ninjacart), fintech credit, e-commerce and weather or price tools.
- Farmer to agripreneur, with training such as SVEP.
- Only a fraction of 10,000+ FPOs are viable; they need finance, governance and market links.
- 4P model (Public-Private-Producer Partnership) and CSR for rural infrastructure.
- Organic push: PKVY, NPOP, Fairtrade and blockchain traceability.
Reforms
- Rural LPG 2.0: Localisation, Participation, Green Growth.
- Inclusive finance for SHGs, FPOs, rural MSMEs; digital tools such as drones and chatbots.
| SDG | Theme |
|---|---|
| 1, 2 | Poverty, food security |
| 8, 10 | Decent work, inequality |
| 12, 13 | Sustainable consumption, climate resilience |
Exam angle
- 4P = Public-Private-Producer Partnership.
- Certification scheme: NPOP.