4_Issues & Problems of Farmers in India

8/3/2019 4_Issues & Problems of Farmers in India

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Issues / Problems of Farmers in India

A. Credit related IssuesDelay

1. Adequate and timely credit is not given and there are undue delays in dispensation ofCredit (A.P. Kerala, Madhya Pradesh, Tamilnadu, Tripura))

Scales of Finance

2. The scale of finance fixed by District Level Technical Committees, especially the scaleof finance adopted by DCCBs is inadequate as the farm labour has become costly.Moreover, it is not fixed as a range i.e. lower for farmers adopting traditional methods ofcultivation and the upper for farmers who use modern methods of cultivation(Tamilnadu).

3. Scales of finance does not meet the need of cost of cultivation and needs to be

revised considering the specific situation in the islands (Andaman & Nicobar).

Documentation & Security norms

4. Some of the farmers have expressed unhappinesss about the security norms anddocumentation process. (A.P)

5. Cumbersome & time consuming loan procedures and levying of stamp duty on loans foragriculture & allied activities is impeding farmers access to bank credit. (Haryana)

6. Small artisans/ self employed persons not being able to access bank credit due tostringent collateral security norms. (Haryana)

7. Inability of non-farmers, who do not own any landed property except small houses, to

offer collateral for taking loan from the formal credit system and their dependence on thefinance companies /local money lenders to meet their credit requirements.

8. Non-farmers especially the beneficiaries identified under PMEGY, Swaroj Card Creditcard scheme expressed their demand for hassle free loans without much documentationfrom the banks. (Gujrat)

9. Simplification of procedures/ process of documentation, flexible security norms,timeliness and adequacy of credit, delivery of credit and recovery within easy reach,increased transaction hours and comfort level in dealings are important factors forexpanding the coverage of institutional credit. (Odisha)

10. Farmers continue to face the problem of obtaining Land Possession Certificates.

(Jharkhand)

11. Farmers insisted that the loans against the mortgage of their agriculture land andmortgage is indicated on the jamabandi itself. In such cases, No Dues Certificate and thecertificate from advocate is not necessary. (Rajasthan)

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Lack of awareness of KCC and other schemes

12. Most of the farmers were not aware of the salient features of the KCC scheme GeneralCredit Card and Swarozgar Credit Card and benefits thereof as also the loan availmentprocedure. These schemes need to be popularised. (A.P, Haryana,Gujrat, Jharkhand,Maharashtra, Odisha)

13. No proper communication of terms and conditions like rate of interest, repaymentperiod, repayment schedule, amount of instalments etc. was made to theborrowers.(Haryana)

14. Some of the farmers advocated for freedom in use of the KCC for other allied activitieslike purchasing of milch animals and they wanted that their loan eligibility be assessed foronce and provided credit. They want General Credit Card on reduced interest rates on theline of KCC, and simplification in loan documentation so that the more and more clientscan be covered under the credit schemes. (Rajasthan)

15. Farmers who are availing loans from Land Development Bank should be provided theKCC and there should be easiness in mortgage of the land. (Rajasthan)

16. KCCs have not been operated in their true spirit - any number of withdrawals andrepayments. Awareness levels on operation of KCC are still at a pathetically low level.Many farmers suggested for a pro farmer approach by banks. (Tamilnadu)

17. Another problem encountered by the farmers is that the cooperative system stillcontinues to insist on lifting of the kind component of the crop loan. This deprives thefarmers of the freedom of choice of inputs and defeats the very objective of KCC.(Tamilnadu)

18. Limits fixed by the banks under KCC are arbitrary and not as per their land holdings,scale of finance, etc., leading to under financing in many cases which inhibits the farmersin pursuing scientific agricultural production. KCC coverage needs to be improveddrastically with all farmer households being covered under the scheme. (UP)

Others - Credit related issues

19. In most of the districts, the banks were not financing Raitu Mitra Groups (RMGs.) -(A.P)

20. Farmers engaged in allied activities found it difficult to obtain Investment Credit fromBanks and hence, borrowed money from money lenders at exorbitant rates. (A.P, Haryana,Rajasthan)

21. Weavers and Artisans were finding it difficult to get credit from banks for theirworking capital requirement. (A.P, Gujrat)

22. Non availability of credit to tenant farmers oral lessees was reported.

(Haryana, Gujrat,Tripura)

23. Frequent visits by farmers to get Land Records from the Department of Revenue andalso to get loans from banks (Haryana)

24. High interest rates on loans especially on Agriculture Term Loan, service & businesssector (Haryana)

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25. Social expenditure on increase; Lack of access by farmers to consumption loans fromthe banking system leading to a increase of indebtedness especially to informal sources,to meet consumption needs (Haryana)

26. Banks are not conveying the reasons for rejection of loan applications (Haryana)

27. There are demands from some of the districts for getting educational loans withoutcumbersome procedures. (Gujrat, M.P)

28. There is need to increase per group finance to matured SHGs trained to take upincome generating activities (Farm and Non Farm activities)particularly while extendingloan under II and subsequent linkages (repeat finance) (Gujarat)

29. Incentives to be extended to those who repay their loan promptly instead of across theboard waiver. (Kerala)

29. The terms of credit are not flexible and a built in mechanism is necessary to deferdues in case of distress. (Kerala)

31. Banks are charging inspection/service/visit charges, etc. for farm loans. (Kerala)

32. Farmers expect timely and appropriate relief measures during drought conditions.Banks are expected to have more proactive role in this direction. (M.P)

33. Farmers need banking services at their doorsteps which would help them in availingthe various facilities provided by the banks. Further, proximity would also help the banksto establish 'relationship banking' (M.P).

34. Bank officials are not being sensitised towards farmers expectations. (Maharashtra)

35. Awareness camps for various schemes policies are not being arranged. (Maharashtra)

36. The ongoing subsidy schemes for private irrigation projects as well as other forms ofinvestments in agriculture and allied sectors, need to be adequately publicised to ensureoptimal utilisation of the same. (Odisha)

37. It was opined that the farmers get loans at 7 per cent from nationalised banks , RRBsand cooperatives but the private banks are not lending at 7 per cent as the InterestSubvention Scheme is not extended to them. Hence the farmers avail loan at higher ratesof interest from these banks. (Tamilnadu)

38. Debt waiver/relief measures announced by the government has vitiated the recoveryclimate as those farmers who had promptly repaid their loans felt that loan waivers werea disincentive to them. Moreover, rumors in some quarters of another waiver has resultedin even the prompt repayers delay their repayment. (Tamilnadu)

39. Pledge loan facility by the banks in association with godowns wherever feasible needto be extended. (Tamilnadu)

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B. Extension Services relatedissues1. Most of the farmers opined that the innovations made at Research Stations/Agricultural

Universities were not reaching them. The extension services in the nature of technologyto be adopted, type / variety of crops to be grown, potentials need to be disseminated.(Andhra Pradesh, Goa, Haryana, Jharkhand, Manipur, Mizoram, Punjab, Rajasthan, Tamil

Nadu)2. Timely and adequate supply of quality seeds, pesticides, farm implements need to be

ensured by Agricultural Department and other extension agencies of State Government.(Andhra Pradesh, Goa, Haryana, Jharkhand, Maharashtra, Manipur, Mizoram, Punjab,Rajasthan, Tamil Nadu)

3. Most of the farmers in all the districts felt that the electricity department should ensureuninterrupted supply of electricity atleast for 12 hrs per day without any voltagefluctuations. Energisation of pumpsets should be given top priority by the ElectricityDepartment and pending application should be cleared in a time bound manner. (AndhraPradesh)

4. Farmers of Guntur District felt that the Irrigation Department should inform the farmerswell in advance the probable date and time of release of water from reservoirs to enablethem to plan agricultural operations. (Andhra Pradesh)

5. There is a need for Agriculture Department to associate with NGOs and disseminateinformation on crop husbandry, improved implements, dusters, sprayers etc. by organisingdemonstration programmes. (Andhra Pradesh)

6. Awareness camps on the various welfare and promotional schemes implemented by Stateand Central government for farmers and non-farmers need to be organised. (AndhraPradesh)

7. Farmers are not getting guidance on use of improved variety of seeds and plantingmaterial, pest and nutrition management and other improved agriculture practices, for

undertaking allied activities like dairy, poultry and other agriculture related operationsetc. Frequent and intensive interaction of extension agencies with farmers through forumslike Farmer Club is necessary. (Goa)

8. Timely support and guidance from veterinary doctors is not available which results in lowsuccess rate in AI.(Goa)

9. Lack of coordination among different extension agencies result in low level technicalinputs to the farmers engaged in animal husbandry activity. (Goa)

10.Extension services to be provided are generally decided by the concerned departmentwithout taking into account the actual requirement at village level and the outreach isinsufficient to meet the need at grass root level.(Haryana)

11.Lack of information on market availability, prices etc.(Haryana)12.As most of the farmers are not aware of groundwater availability so there is need for

awareness creation and training programmes for judicious management of irrigationwater, water conservation and recharging of groundwater and also maintenance of soilhealth, soil conservation at village level. (Haryana)

13.Need for conducting training programmes on existing and emerging activities in allied andnon farm sector. (Haryana)

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C. Marketing related issues

1. There is a huge difference in the retail price and farm gate price and the same should beplugged through appropriate market intervention. The support prices for various cropsare to be announced in the beginning of the season and future trading in agricultural

produce is to be encouraged to enable farmers to plan agricultural operations. (AndhraPradesh)

2. Assured reliable markets for SHG products is the biggest constraint for SHGs in taking upproductive activities. The same problem is faced by many of the artisans also. (AndhraPradesh)

3. Farmers, in general were forced to make distress sale due to inadequate storage facilitiesand produce loans. (Andhra Pradesh)

4. Weavers felt that there should be an arrangement for marketing of their produce by theconcerned Govt. Agencies/Corporation and dues thereof should be settled immediately.(Andhra Pradesh)

5. Most of the Market Yards are non- functional and few functional market yards do not havethe necessary infrastructure required for carrying out transactions in a transparentmanner. (Andhra Pradesh)

6. There is an urgent need to provide all weather roads for connectivity with market centersfor securing agriculture inputs and disposal of farm produce. Due to inadequate marketingarrangements, farmers generally sell their produce to the middle men at very low prices.(Assam)

7. Lack of organized marketing support for horticulture and garden crops result in overdependence on private dealers who exploit the situation. (Goa)

8. Small & marginal farmers need to be encouraged to take up cashew processing on clusterbasis with centralized storing arrangement to procure and store seeds during fruiting

season which will also facilitate pledge financing by the banks. (Goa)

9. Arecanut growers are seeking support price for their produce in view of lower pricesfetched by them from traders in local market. (Goa)

10.The farmers want to experiment with new crops with the provision of assured tie uparrangements with agencies which would buy back their produce.(Gujarat)

11.Minimum Support Price should also be fixed for all the major agriculture produces.(Gujarat)

12.Market stabilisation and intervention should be ensured by Government to encourage thefarmers to increase productivity of their farms/crops. (Gujarat)

13.Demand for geographical proximity to facilities viz. Post harvest handling, Storage,Processing, Cold Storage, Pack Houses and Processing Houses along with functional andModern Market Yards. (Gujarat)

14.The Minimum Support price of various crops is not commensurate with the cost ofproduction. (Haryana, Punjab)

15.Lack of proper processing & organised marketing facilities are major deterrent in takingup diversified farming. Because of this, farmers go for easily marketable crops like wheat& paddy. (Haryana, Punjab)

16.The storage and warehousing charges are very high. (Haryana, Punjab)6


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17.Levying of VAT on agricultural produce. (Haryana, Punjab)18.Marketing of crops is mostly through middlemen / commission agents. Rates of commission

charged by the Arthiyas and other marketing charges are high. (Haryana, Punjab)

19.Sale price of milk at village level is very low; therefore it is becoming unviable activity.(Haryana)

20.The market/mandis need to be equipped with scientific weighing measuring equipmentsso that the farmers are not exploited. (Haryana,Punjab)

21.Many units are facing stiff competition from cheaper Chinese goods, which have floodedthe market. (Haryana)

22.There is tough competition with organised sector. (Haryana)23.Marketing of fruit/vegetable crops is the major problem faced by the farmers. (Jammu &

Kashmir)

24.Market prices of agri-commodities like pepper, cardamom, tea, coffee etc. are volatileand farmers are demanding for appropriate support price by the State Government toinstill confidence in them for cultivation. Due to the delay on the part of the agency inprocuring paddy, farmers are forced to sell the produce to private parties at a low priceand often on credit. (Kerala)

25.Government arrangement of procurement to be strengthened. (Maharashtra)26.Both farmers and non-farmers feel that they do not get remunerative price for their

produce and that income from one farming activity has to be supplemented, otherwisethey could never make ends meet. .(Manipur, Tripura, Mizoram)

27.During the good crop year the produce have to be carried to the main market place duenon availabilty of proper storage. The government procurement system and the supportingprice (not present for all the major crops) facilities are not much effective or useful atthe time of need. (Mizoram)

28.Poor demand/market for items produced out of their inherited skills i.e. handicraft,handlooms, etc. (Punjab, Haryana)

29.Agricultural produce cultivated under Organic Farming is to be marketed in a scientificand organised way by fixing market price for various products. (Tamil Nadu)

30.Tie-up arrangements for marketing horticulture produce are not in place at present.(Tamil Nadu)

31.The Agricultural Marketing Committees are to be strengthened in order to help thefarmers in getting remunerative prices, besides providing Godown, marketing and otherfacilities. (Most of the states)

32.Many farmers view farming to be no longer remunerative and quite a few were found tobe unaware about costing their operations also. Farm mechanization knowledge isrestricted to tractors and threshers mainly. (Haryana)

33.Many farmers view farming to be no longer remunerative and quite a few were found tobe unaware about costing their operations also. (Punjab)

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D. Infrastructure related issues

1. Fertilizer testing arrangements are neither available in the districts nor within the State(Goa)

2. Fruit processing activities can be encouraged by setting up exclusive processing zones withinfrastructural facilities like food parks, cold storage, ripening chambers, grading and

packing facilities, etc. There is need for more value-addition centres and facilities forpost-harvest extension services. (Gujarat, Manipur, Goa)

3. Availability of day-old-chicks (DOCs) and Hatchery for promoting poultry activity.(Gujarat)

4. Testing Lab for brackish water prawn samples is not available (Gujarat)5. Non availability of uninterrupted power supply leads to high cost of irrigation. (Haryana,

Punjab, Jammu & Kashmir, Maharashtra, Manipur, Uttar Pradesh, Kerela, Rajasthan)

6. Though there is good network of veterinary dispensaries and hospitals, the non-availabilityof vaccines, medicines, diagnostic services and AI facilities is a constraint.(Haryana,Punjab)

7. Insufficient storage capacity for perishable produce results in distress selling by thefarmers. Hence they produce these goods mainly for local use. (Goa, Haryana, Punjab,Rajasthan)

8. Lack of proper roads and communication facilities in almost all the districts (Jammu &Kashmir, Gujarat, Tamil Nadu, Maharashtra, Manipur, Uttar Pradesh, Rajasthan)

9. Adequate number of pumpsets are not being energised. (Maharashtra)10.No. of rural haats/ marketing places are not adequate. (Maharashtra)11.Most of the farmers expressed that soil testing facilities should be locally available.

(Mizoram, Tripura)

12.Farmers advocated that if Agriculture marketing board can make arrangements forpurchase of farmers produce in the village itself they can get good price withoutdelay.Alternatively mandis may be established in their villages. (Rajasthan)

13.Encourage agriculture graduates to stablish the agriclinic and agri business centers,(Rajasthan)

14.Poor sanitation and hygiene, public health, veterinary care facilities, schools, absence ofsafe drinking water, public transport facility need to be improved. (Haryana, Punjab,Rajashthan, Tamil Nadu)

15.There is a need for community owned assets like common threshing floor, godowns andcommunity hall. (Tamil Nadu)

16.Hiring facilities of power tiller and other agri equipments was very much inadequate. Thiscaused the farmers to hire the equipments, particularly power tiller at much higher ratethan the normal rate.(Tripura)

17.Establishment / Linking of more milk routes and the existing routes to be strengthened.(Tamil Nadu)

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E. Inputs related issues1. Getting adequate quantity of the certified seeds, fertilisers and pesticides is apersisting problem. Agriculture department is not able to meet the demand of seeds,fertilisers and pesticides fully . Further, seeds, fertilisers and pesticides available fromprivate suppliers in the local market often lack guaranteed quality. (Chhattisgarh,

Jharkhand, Karnataka, Maharashtra, Kerala)2. Quality of Inputs being supplied by various agencies including the Society Certifiedseeds and fertilizer were often in short supply during the period when the farmers requireit the most leaving the farmers to exploited in the hands of the private traders.(Chhattisgarh)

3. At the time of scarcity of seed, ferilizer, pesticides, etc., the farmers have to fend forthemselves and needs to meet the requirement by paying higher prices. (Chhattisgarh)

4. In the areas where Padasekhara Samitis (Groups of Farmers) are functioning,agricultural inputs are purchased in large quantities and distributed among them, therebyreducing the cost of cultivation. A few farmers demanded that quality seeds may besupplied by Krishi Bhavans. Dairy farmers complained about the exhorbitant rise in theprice of cattle feed and expressed concern about the financial viability of the activity.(Kerala)

5. There was acute scarcity of fertilizers and the price of the same rises due to monthlong economic blockade on the National Highways, the life line of the State. There is alsolack of mechanization for agricultural operations as power tillers/ tractors are notavailable even for hire, leading to loss of quality time through animal power utilization.(Manipur)

6. Farmers are not getting inputs like bio-fertiliser, improved seeds, etc., in time mostlybecause of lack of awareness. They are using bio-fertilizers which are locally produced.Some farmers also use bio-fertilizers brought from the neighbouring district of Darjeeling.

The State Government has declared the State as an Organic State. However, necessaryinputs like bio-fertiliser, organic seeds/ saplings and other services are not availableadequately and in time. (Sikkim)

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F. Other issues

1. Commercial orientation is lacking due to non availability of information on latest farmpractices. Due to high risk perception and uncertainty of rains and market prices, farmersare generally unwilling to make heavy investment in agriculture for raisingcommercial/high value crops. (Assam)

2. Proper legislation is demanded by a section of farmers to protect the interests of thosewho take up contract farming. (Kerala)

3. Farmers are reluctant to adopt contract farming because of absence of suitablelegislation. (Haryana, Punjab)

4. Contract farming with buy back guarantee be popularised. (Maharashtra)5. Low productivity and unremunerative prices affect repayment of institutional loans.

(Odisha)

6. Absentee Landlord, fragmented land holding, obsolete land records and disputed legalheirs are the major constraints in availing bank credit. (Goa)

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Guidance for pest control measure and arrange for front-line demonstrations are lacking.(Goa)

8. Irrigation facility to be provided by way of community ponds/wells with micro irrigationsystem (Gujarat

9. Sharp decline in water table because of which the farmers have to install submersiblepump sets at heavy cost. Legislation on use of ground water for irrigation may beenacted. (Haryana, Punjab)

10.Soil salinity and water logging were cause of concern to the farming community.(Haryana, Punjab)

11.Awareness about small water harvesting structures and minor irrigation system is almostabsent in most of the districts. (Jammu & Kashmir)

12.Intrusion of sea water/floods which lead to massive crop loss, high cost/non-availability oflabour, money saving farm implements, irrigation, storage, etc., are the major constraintin Farm Mechanisation activities. Although scheme for sprinkler and drip are availablewith subsidy support from department of Agriculture, coffee crop has not been coveredunder the scheme. In the realm of support/extension services, absence of a proactiveapproach by the line departments, failure to provide the farmers with quality seeds,adequate fertilizers, marketing support, etc., lack of storage facilities, inadequate/highcost of crop insurance, inability to catch up with latest technology, etc., are some of themajor deterrents. There should be a system to purchase the produce immediately after itis harvested and to ensure that the farmers get the sale proceeds with out any delay.(Kerala)

13.Priority needs to be given for construction of check dams / bundhs.(Maharashtra, Kerala,Rajasthan)

14.Desilting and strengthening/proper maintenance of irrigation tanks, canal system, waterstructures and continuous pollution caused to canals/rivers. (Tamil Nadu)

15.Ground water irrigation was negligible. Rabi cultivation was minimum for want ofirrigation since most of the water sources i.e. local cherra/streams/ponds etc, are notperennial. (Tripura)

4_Issues & Problems of Farmers in India

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