Experts discuss why farmers' income remains stagnant despite record production

Despite record agricultural production in India, experts held in-depth discussions at the 'Kisan Tak Bharat Agriculture Conference 2026' held at Bharat Mandapam in Delhi on why farmers' income is not increasing at the same pace. During the 'Fasal Guni, Aay Duguni' session of this conference organised by the India Today Group, detailed deliberations were held on the major challenges in the agriculture sector and ways to increase farmers' income.

During this session, NITI Aayog Deputy Chairman Dr Ashok Lahiri, ICRIER Infosys Chair Professor Dr Ashok Gulati, former Director of the Institute of Economic Growth Delhi Dr Beena Agarwal, and NABARD Chairman Dr Shaji K.V. presented their views. During the discussion, it was emphasised that while the country's economy is growing rapidly, cities are expanding, and people's income and expenditure are also increasing, the income of farming farmers cannot grow at this pace.

India today ranks first in the world in the production of many crops and is also a leader in milk production; yet, despite record-breaking production, farmers often do not get the right price for their produce. In some places, prices fall due to overproduction, while in others, proper coordination between crop demand and the market cannot be maintained.

NITI Aayog Deputy Chairman Dr Ashok Lahiri stated that India has travelled a long journey in the field of agricultural production. Recalling the situation of the 1960s, he said that at that time the country had to face grain shortages and, in certain circumstances, families eating rice were advised to eat roti. However, the situation has changed today and there is sufficient production of rice and wheat in the country, but the main question is why farmers' income does not increase despite such a huge achievement.

Dr Ashok Lahiri cited the gap between the population engaged in the agriculture sector and agriculture's contribution to GDP as a major reason for this. He provided information that approximately 46 per cent of the country's population works in the agriculture sector, while agriculture's contribution to the country's GDP is approximately 16 to 17 per cent. This means a large population is engaged in a sector that provides relatively low economic contribution, due to which individual productivity and income in the agriculture sector remain low.

To solve this problem, he indicated the need to work on two levels. First, agricultural productivity and the income derived from it should be increased, and second, employment opportunities should be created in the industry and service sectors for some people dependent on agriculture. He added that such a change has been observed with development in many countries of the world.

ICRIER Professor Dr Ashok Gulati drew attention to a major problem related to farmers' income. He said that when the production of any crop is very high, its price begins to fall in the market. In this situation, the farmer is put in difficulty because if production is high, there is a fear of prices falling, and if production is reduced, there is a risk of income falling.

Dr Ashok Gulati further stated that India is among the world's largest rice producers and exporters today. India's share in total global rice exports is approximately 40 per cent. Nevertheless, a large stock of grain is stored in the country and approximately 81 crore people are being provided free grain. Due to overproduction and limited demand, there is pressure on rice prices.

To emerge from this situation, Dr Ashok Gulati suggested that some areas of rice cultivation need to be diverted towards crops such as pulses and oilseeds. While India is a major exporter of rice, it is also a major importer of pulses and edible oils. India imports approximately 50 to 60 lakh tonnes of pulses every year, so more emphasis should be placed on increasing the local production of these crops in the country.

India has remained one of the leading countries in the world in the field of agricultural production and various policies have been implemented for years to ensure food security.