What’s behind the Economic Disparity among Big and Small Farmers?

For a very long time people did not know there is such segregation of farmers like, big farmers, small farmers and marginal farmers. With such segregation other disparity also proves their existence, but the one that affects the most is the economic disparity. 49 percent of the Indian population indulge in the agriculture sector, wherein only 2 hectares of land is owned by both small and marginal farmers.?

The average annual earning of a large farmer is seven and a half times more than that of a small farmer, this shows the huge financial gap among the big and small farmers.?

There are plenty of reasons why there is such economic disparity among the workers of the agricultural sectors. Here are some of the reasons behind this gap:

• There is an inverse relationship between land size and efficiency, with small farm sizes making mechanization impossible and resulting in lower productivity and yields.?
• Small and marginal farmers fall into the debt trap of moneylenders due to lack of formal or institutionalized sources of credit.
• Policies are poorly directed and the benefits are mainly aimed at large-scale farmers. Most populist programs, such as agricultural loan forgiveness, only benefited large farmers.
• When smallholder farmers engage in emergency sales due to insufficient storage infrastructure, the price of their produce is advantageous, even if it is low.

There have been several steps that have been taken by the ministry as well as other organizations that work for these small holders. Here are some of the measures we can take to prevent these kinds of disparities:?

• Digitize land register entries for targeted benefits to small and marginal farmers.?
• Effective implementation of e-NAM (National Agricultural Market) will improve price discovery for farmers, resulting in higher profits for farmers.
• Creating non-farm jobs through programs such as the Prime Minister's Job Creation Program to reduce hidden unemployment in agriculture.
• Increasing access to formal sources of credit for small and marginal farmers.
• Promote farmer-producer organizations and cooperative farming to give smallholders better bargaining power.
• It provides a link between the laboratory and the farm by raising awareness of more scientific farming methods to improve yields and, as a result, increase yields.

There is a desperate need to focus on the overall growth of small holders and facilitate them with resources that make it easier for them to function and generate more revenue.

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