The Next Farm Revolution Must Aim at Significantly Raising Farmers’ Incomes

13 Oct 2026

Tags: Agriculture   Cropping & Irrigation   Agricultural technology

Source: The Indian Express

Context: India’s next agricultural transformation must move beyond increasing production towards significantly raising farmers’ incomes, improving resource efficiency, diversifying crops and adopting sustainable agricultural practices.

 

Gujarat’s Agricultural Transformation: Lessons for India

• Gujarat model (2001–2014): Under Narendra Modi’s tenure as Chief Minister, Gujarat recorded agricultural growth of over 9% annually, supported by irrigation infrastructure, groundwater recharge through check dams, improved access to Narmada River water, feeder lines for agricultural irrigation, rural roads and agricultural extension through Krishi Mahotsav.
• Key lesson: Reliable irrigation, infrastructure, technology adoption and coordination among government agencies, farmers and the private sector can improve agricultural productivity and rural prosperity.
• National experience: India faced severe droughts in 2014 and 2015. Subsequently, irrigation support through the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) and crop insurance through the Pradhan Mantri Fasal Bima Yojana (PMFBY) helped strengthen agricultural resilience.
• Growth performance: Average agricultural GDP growth during 2014–15 to 2025–26 was around 4% annually, according to the article—below Gujarat’s earlier growth rate, though the two figures relate to different geographical and economic contexts.

India’s Agricultural Strengths

• Food security: India has become a major producer and exporter of rice and wheat, supported by irrigation, improved agricultural practices and government procurement. The article highlights the contribution of subsidised foodgrain distribution under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).
• Agricultural exports: In 2025–26, India exported approximately $53 billion worth of agricultural products, led by rice and marine products, while imports of agricultural goods were around $40 billion, primarily edible oils and pulses.
• Remaining challenge: Production growth has not translated into sufficient income growth for all farmers, particularly small and marginal cultivators facing rising input costs and resource constraints.

Major Challenges Facing Indian Agriculture

• Production mismatch: India produces surplus rice and wheat but insufficient pulses and oilseeds, resulting in import dependence for certain commodities and excessive use of resources for water-intensive crops.
• Groundwater depletion: Subsidised electricity and irrigation can encourage over-extraction of groundwater, particularly in Punjab and Haryana, where paddy cultivation places substantial pressure on water resources.
• High input costs: Irrigation infrastructure, including tubewells and canals, can cost nearly ₹40,000 per hectare. The article argues that shifting suitable areas away from paddy towards pulses and oilseeds could reduce groundwater pressure and save public expenditure on power, canal irrigation and fertiliser subsidies.
• Low income diversification: Dependence on basic cereals limits opportunities to increase farm earnings through higher-value activities and better market linkages.
• Climate vulnerability: Recurrent droughts and declining water tables threaten productivity, making efficient irrigation, climate-resilient crops and sustainable resource management increasingly important.

Raising Farmers’ Incomes through Crop Diversification

• Shift towards high-value agriculture: Farmers should diversify from basic cereals towards fisheries, poultry, dairy, fruits and vegetables, which can generate higher incomes when supported by efficient supply chains, storage, processing and market access.
• Promote pulses and oilseeds: Incentivising these crops can reduce import dependence, improve crop diversity and conserve groundwater in regions currently dominated by paddy and wheat.
• Address the demand–supply mismatch: The next agricultural transformation must align cropping patterns with domestic nutritional demand, export opportunities and agro-climatic suitability rather than prioritising cereal production alone.

Agrivoltaics: Combining Agriculture and Solar Energy

• Concept:Agrivoltaics involves installing solar photovoltaic panels over agricultural land at suitable heights and spacing so that farming and electricity generation can occur simultaneously.
• Dual-income model: Farmers can earn from crop cultivation as annadatas and from solar electricity generation as urjadatas, potentially creating an additional income stream without completely abandoning agriculture.
• Rajasthan pilot: The International Centre for Research on the Environment and Development (ICRIER) has studied an agrivoltaic pilot project in Rajasthan in which a farmer’s income reportedly increased eight to ten times. Outcomes depend on the baseline income, crop choice, project costs and electricity arrangements.
• Potential benefits: Agrivoltaics can diversify rural incomes, support renewable-energy generation and, where appropriately designed, reduce heat stress and water loss for selected crops.
• Implementation requirements: Solar panels must be installed at appropriate heights and spacing to permit farm operations and adequate sunlight for crops grown underneath.

Policy Recommendations

• Rationalise subsidies: Reorient power, irrigation and fertiliser support to encourage water-efficient cultivation and reduce incentives for excessive groundwater extraction, while protecting farmers’ livelihoods.
• Incentivise crop diversification: Provide suitable price support, market access and extension services for pulses and oilseeds, particularly in groundwater-stressed regions.
• Expand agrivoltaics: Strengthen support under the PM-KUSUM scheme and consider a dedicated programme, potentially called Surya Khet Kranti, to promote solar-powered farming alongside crop production.
• Ensure equitable implementation: Make renewable-energy projects accessible to small and marginal farmers through financing, appropriate land arrangements and reliable power-purchase mechanisms.
• Focus on income rather than output alone: Evaluate agricultural policies using indicators such as real farm income, profitability, water productivity and resilience, alongside production growth.

Additional Information

1. Key Agricultural Schemes

• PMKSY: Aims to expand irrigation coverage and improve water-use efficiency through the principles of Har Khet Ko Pani and Per Drop More Crop.
• PMFBY: Provides crop insurance against specified risks and helps reduce farmers’ vulnerability to crop losses.
• PM-KUSUM: Promotes solar energy in agriculture through decentralised renewable-energy plants, standalone solar agricultural pumps and solarisation of grid-connected agricultural pumps, subject to scheme provisions.
• PMGKAY: Provides free foodgrains to eligible beneficiaries under the National Food Security Act framework, strengthening household food security.

2. Agrivoltaics and Sustainable Agriculture

• Food–energy–water nexus: Agrivoltaics can link food production with renewable energy, but project design must account for crop-specific sunlight requirements, water availability and land-use conditions.
• Resource-use efficiency: Crop diversification, micro-irrigation, improved soil health and water budgeting can raise output and farm profitability while reducing pressure on natural resources.
• UPSC significance: The issue links agricultural reforms with climate adaptation, renewable energy, groundwater governance, rural livelihoods and sustainable development.