Agrarian Crisis in India : Causes and Remedies

Agriculture in India, from time immemorial is considered as backbone of Indian economy. But . unfortunately at present the backbone is fractured and the dependents ~e in dire straits. An economic theory proposed by economist Hawley F.B. states that higher the risk, higher will be -the profit. Though agriculture is the riskiest industry, profits are scarcely seen by the Indian farmers. Fighting against all odds, if the farmers gets good yield, the price of farm product decreases; whereas when farmer will not have enough output to sell with him/her either due to drought or floods, the price of farm product increases. Even in normal conditions when the farmers gets good produce and the prices in the retail market are good, the farmers hardly gets good price! It has been a general rule that farmers get only 1/3 of what consumers pay to his product. It is obvious that the increase in. price of farm products is beneficial neither to the farm producer nor the consumer, but to the middleman or intermediary. Hence, the farmer's either gets less income or sometimes lesser than the incurred cost