Agricultural Reform in India – Evolution,
Impact, Sustainability, and Policy
Pathways
Author: Nirek Maken
Date: October 2024
Abstract
Agriculture remains a vital part of India’s economy and employs nearly half of its population.
However, the sector faces challenges, including fragmented landholdings, market
inefficiencies, environmental degradation, and climate change. Over the years, reforms have
aimed to modernize agriculture, improve productivity, ensure food security, and uplift
farmers' incomes. Despite some successes, many challenges remain unresolved. This
thesis examines the evolution of agricultural reforms, their socio-economic and
environmental impact, and provides detailed recommendations for future reforms focusing
on sustainability, technology integration, and climate resilience.
Table of Contents
1. Introduction
2. Historical Evolution of Agricultural Reforms in India
3. Key Agricultural Reforms
○ 3.1. Green Revolution
○ 3.2. Liberalization of Agriculture
○ 3.3. E-NAM (National Agriculture Market)
○ 3.4. Crop Insurance Schemes
○ 3.5. Contract Farming and FPOs
4. The 2020 Farm Laws: Reforms and Repeal
5. Impact of Reforms on Agriculture and Farmers
○ 5.1. Economic Impact
○ 5.2. Social Impact
○ 5.3. Environmental Impact
6. Challenges Facing Indian Agriculture Today
7. The Need for Sustainable Agriculture
8. Innovative Policy Recommendations
9. The Role of Technology and Climate-Resilient Practices
10. Conclusion
11. Bibliography
1. Introduction
Agriculture contributes nearly 16% to India’s GDP and supports about 50% of the workforce.
However, Indian agriculture is characterized by low productivity, inefficient markets, water
scarcity, and dependence on monsoon rains. Over time, various reforms—ranging from the
Green Revolution to the recent efforts toward digital markets—have sought to address these
challenges. Yet, the sector remains vulnerable to climate change, environmental
degradation, and structural issues. This thesis evaluates the current state of agricultural
reforms and proposes sustainable, technology-driven policies for the future.
2. Historical Evolution of Agricultural Reforms in India
India’s agricultural policy evolved in phases:
● Post-Independence Period (1947–1960s): Focused on food security and land
reforms to ensure equitable distribution of farmland.
● Green Revolution (1965–1980s): Introduced high-yielding seeds, fertilizers, and
irrigation to boost production.
● Liberalization (1991): Reduced state control, encouraged private investment, and
promoted exports.
● Recent Initiatives: Emphasis on digital platforms (e-NAM) and welfare schemes like
crop insurance and FPOs to empower farmers.
3. Key Agricultural Reforms
3.1. Green Revolution
The Green Revolution transformed India into a food surplus nation. However, it was limited
to a few crops (mainly wheat and rice) and regions, leading to imbalances in crop patterns
and environmental concerns like groundwater depletion.
3.2. Liberalization of Agriculture
The 1991 economic reforms aimed to integrate Indian agriculture with the global economy
by removing trade barriers, reducing subsidies, and encouraging private investments.
3.3. E-NAM (National Agriculture Market)
The e-NAM platform, launched in 2016, aimed to create a unified market by linking mandis
across the country, enabling farmers to access better prices for their produce.
3.4. Crop Insurance Schemes
The Pradhan Mantri Fasal Bima Yojana (PMFBY) was introduced to protect farmers from
losses due to crop failure. However, delayed payouts and inadequate coverage have limited
its effectiveness.
3.5. Contract Farming and FPOs
Contract farming and the promotion of Farmer Producer Organizations (FPOs) have
aimed to improve small farmers' bargaining power and market access, encouraging private-
sector participation.
4. The 2020 Farm Laws: Reforms and Repeal
In 2020, three new farm laws were introduced to deregulate markets and promote contract
farming. However, farmers protested, fearing the loss of Minimum Support Price (MSP)
and increased corporate control. After nationwide protests, the laws were repealed in 2021,
reflecting the need for inclusive reform processes that involve key stakeholders.
5. Impact of Reforms on Agriculture and Farmers
5.1. Economic Impact
● Increased productivity and ensured food security, but benefits were unevenly
distributed across regions and crops.
● Small farmers still struggle with low incomes and poor access to markets.
5.2. Social Impact
● Mechanization has led to migration from rural areas and the marginalization of
landless laborers.
● Farmer distress and indebtedness have caused social unrest in rural areas.
5.3. Environmental Impact
● Intensive farming has caused soil degradation, groundwater depletion, and overuse
of fertilizers and pesticides.
● Climate change has worsened the frequency of droughts and floods, threatening
crop yields.
6. Challenges Facing Indian Agriculture Today
● Fragmented landholdings reduce productivity.
● Water scarcity due to the overexploitation of groundwater.
● Climate change and extreme weather events increase the risks for farmers.
● Market inefficiencies persist, with farmers dependent on intermediaries and mandis.
7. The Need for Sustainable Agriculture
A transition toward sustainable agriculture is critical to combat environmental degradation
and climate risks. Key aspects of sustainability include:
● Ecological sustainability: Soil conservation, water management, and agro-
biodiversity.
● Economic sustainability: Reducing input costs and increasing farm income.
● Social sustainability: Inclusive growth and empowerment of marginalized
communities.
8. Innovative Policy Recommendations
8.1. Climate-Resilient Agriculture
● Drought-resistant crops and climate forecasting tools to guide planting seasons.
● Incentivize crop diversification to reduce dependence on water-intensive crops.
● Risk-mapping initiatives using satellite data to prepare for climate impacts.
8.2. Agro-Ecological Farming Systems
● Promote agroforestry and organic farming to improve soil health.
● Expand Integrated Pest Management (IPM) to reduce pesticide usage.
● Encourage zero-budget natural farming (ZBNF) for sustainable agriculture.
8.3. Precision Agriculture and Smart Technologies
● Use AI and IoT-based tools to monitor crop health and predict yields.
● Implement drip irrigation systems to conserve water.
● Develop e-extension services to provide farmers with real-time weather forecasts
and market prices.
8.4. Sustainable Financing Models
● Introduce green credit schemes to incentivize eco-friendly practices.
● Expand weather-indexed crop insurance for timely payouts.
● Promote microfinance platforms for small farmers through digital wallets.
9. The Role of Technology and Climate-Resilient
Practices
● Precision agriculture can optimize resource use and reduce costs.
● Climate-resilient crops such as millets can withstand erratic weather patterns.
● Agri-startups can revolutionize farm-to-market models, providing better prices for
farmers and reducing wastage.
10. Conclusion
India’s agricultural reforms have transformed the sector, but challenges persist due to
market inefficiencies, environmental degradation, and climate risks. Future policies
must emphasize sustainability, climate resilience, and technology integration. A
collaborative approach involving farmers, policymakers, and private-sector stakeholders
will ensure that reforms are inclusive and effective. Sustainable agriculture must be at the
heart of India’s strategy to secure its food future.
11. Bibliography
● Government of India, Economic Survey (2021-22).
● Ministry of Agriculture and Farmers’ Welfare, Annual Report 2023.
● Swaminathan, M.S., Agricultural Revolution: Growth and Sustainability in India.
● Sharma, A. (2022). Climate Resilient Agriculture: The Way Forward.
● Mishra, S. (2019). Agrarian Crisis and Farmers' Movements in India.
● World Bank Reports on Agriculture and Climate Change, 2023.
