“If agriculture fails, everything else will fail.” – MS Swaminathan

Agriculture is a critical sector of the Indian economy. As per the Economic Survey 2023-24, agriculture and allied sectors contributed 18.2% to India’s GDP at current prices, showing a slight decline from previous years. This sector continues to support approximately 42.3% of the population.

Yet, its sustainability is under threat due to systemic challenges, economic neglect, and environmental degradation.

The Swaminathan Commission, established to address agrarian distress, sought to achieve faster and more inclusive growth as envisioned in the 11th Five-Year Plan. It emphasised that inclusive growth cannot be achieved without addressing key issues related to farm labour, land access, and natural resource management. The report outlined measures to ensure farmers’ assured access and control over resources such as land, water, and credit.

The recommendations of the National Commission on Farmers (NCF) constituted in 2004, chaired by M.S. Swaminathan, remains a key reference point in the debate over the future of Indian agriculture. However, over the years, the discourse has narrowed to a fixation on Minimum Support Price (MSP). But the issue of MSP cannot be sidelined because of the much known formula given in the Swaminathan report. That is, MSP should be 50 percent more than the weighted average cost of production. This recommendation was not incorporated in the National Policy for Farmers 2007.

Ownership of Land and Report 

Apart from MSP, the Commission also recommended distributing ceiling-surplus and waste land among landless farmers. Even today, the data underscores stark inequalities. The report, led by the International Land Coalition in collaboration with Oxfam, found that the wealthiest 10% of rural populations across the countries sampled own 60% of the land value, while the poorest 50% of rural populations, who are generally more dependent on agriculture, only own 3% of the land value. Agitating farmers today echo this demand, insisting on ownership of the land they have tilled for generations. The exception being Punjab where the agitation centres around MSP.

Corporate takeover and report 

To prevent the diversion of prime agricultural and forest land to corporate use, the Commission emphasised regulating non-agricultural land use. It also recommended ensuring grazing rights and seasonal access to forests, safeguarding the livelihoods of tribals and pastoralists who depend on common property resources. A National Land Use Advisory Service was proposed to link land-use decisions with ecological, meteorological, and market factors, ensuring location and season-specific guidance. Mechanisms to regulate the sale of agricultural land were recommended to prevent exploitation by powerful buyers.

States and procurement at MSP 

The Swaminathan Commission’s recommendation to fix MSP at C2+50% (comprehensive cost of production plus 50%) has been at the centre of debates. While some states like Punjab and Madhya Pradesh have benefitted from MSP aligning with this formula, its uneven implementation has exposed systemic flaws. Variations across states are glaring: in Chhattisgarh, 38% of rice farmers benefit from MSP, but in states like Bihar, Tamil Nadu, and West Bengal, it is a mere 1%. Punjab and Haryana farmers receive substantial support (62% of wheat is sold at MSP in Punjab), while farmers in other states struggle to access these benefits. The government notifies MSP for more than 20 crops. However, procurement is limited to largely rice and wheat. So, the basic problem lies in the procurement at MSP. That’s why Punjab’s farmers remain better off because of procurement happening not below MSP.

Government and procurement at MSP

The Minimum Support Price (MSP) for paddy, the primary cereal grown during the Kharif season, has been increased by ₹117 per quintal. For the 2024-25 marketing season, the MSP for Kharif crops has been raised by 5 to 12%. The government has reiterated its commitment to ensuring timely procurement through the Food Corporation of India (FCI). But it is not just the centre’s responsibility when it comes to food procurement. States have different procurement rules and regulations for the same. So, if the delay in the procurement through APMC happens, the huge onus lies on the state government.

Overextraction of water due to paddy- but no alternative? 

In the 2014 Haryana assembly elections, the BJP promised to implement the Swaminathan Report’s MSP recommendations but reneged, citing potential price distortions in agricultural markets. Critics argue that MSP alone is insufficient to solve agrarian distress. The argument is that while it can ensure remunerative prices, it distorts crop choices by encouraging monocropping of wheat and rice, harming soil health and water resources. Presently, procurement for only wheat and rice incentivises farmers to cultivate these. This may lead to excess supply of these crops which can lower market price. It is well said that even more production makes a farmer poor. M.S. Swaminathan’s warning that “the future of nations will depend on how they deal with the challenge of producing more food with less water” is particularly relevant. Overextraction of groundwater for irrigation-intensive crops like rice and wheat has created a crisis. Even though the NCF report talked about his vision of rainwater harvesting, it is not practised on a larger scale.

Small farmers at loss when it comes to agrotech

High-cost technologies, such as super-seeders to combat stubble burning, remain out of reach for small and marginal farmers. High private ownership, around 37 per cent, has led to limited usage of these machines. The rental model CHC (Custom Hiring Centres) has also failed to win over the farmers due to delays in the availability of machines and inefficient logistics management.

The Swaminathan Commission’s recommendations offer both opportunities and challenges. On the positive side, the report’s focus on empowering marginalised groups like landless farmers, tribals, and pastoralists promotes inclusivity. Agroecological approaches address long-term environmental concerns, while the C2+50% formula for MSP ensures profitability for farmers. However, regional disparities in MSP benefits show the inadequacy of existing procurement mechanisms especially for perishable commodities like cauliflower, tomato, potato, onion etc.  Due to abundant production, onion prices crashed and farmers in Maharashtra have either been compelled to sell the onions at Rs 1 per kg or throw them on roads.

The Swaminathan Commission’s vision for Indian agriculture remains as relevant today as it was nearly two decades ago. While MSP has dominated the discourse, the Commission’s broader recommendations on land reforms, resource access, and environmental sustainability are critical for achieving inclusive growth. It is imperative for policymakers to adopt a holistic approach, addressing systemic inequities and ecological challenges that plague Indian agriculture today.