1.Small Farmers Challenges (Smallholder Agriculture)
What & Where
Small & marginal farmers: <2 ha land, India Agricultural Census 2015-16
Form >85 % farm households yet cultivate only 45 % net sown area
Core geography: pan-India rain-fed belts reliant on erratic monsoon
Quick Facts for MCQs
Vulnerability Factors
- Climate: 60 % holdings rain-fed, high monsoon variability escalates crop failure risk
- Costs: Rising diesel, seed, fertilizer compress net income; RBI Handbook 2022 flagged input inflation
- Debt: Informal loans dominate for 70 % farmers, inducing chronic indebtedness
Credit & Markets
- Inequity: Corporate write-offs ₹10.09 lakh cr vs sparse smallholder relief indicates systemic bias
- Price: Distress sales rampant; limited storage, only 7 % gain MSP support
- Digital: e-NAM connectivity expanding yet many villages lack broadband, hindering price discovery
Policy Tools
- Income: PM-KISAN cash smooths liquidity but equals only ₹500 per month per family
- Risk: PMFBY low-premium insurance shields yield losses from drought, flood, pest
- Collective: 10,000-FPO mission envisages finance, training, linkage to unlock scale economies
Key Data Points
| Feature | Data-Point |
|---|---|
| Landholding cut-off | <2 hectares |
| Share in farmer population | 85 % |
| Share in cultivated land | 45 % |
| MSP beneficiaries (2015) | 7 % farmers |
| Formal credit access | 30 % holdings |
| Corporate loan write-offs | ₹10.09 lakh crore (RBI 2022) |
| PM-KISAN transfer | ₹6,000 per year |
| Planned Farmer Producer Organisations | 10,000 units |
| Organic area target (PKVY) | 2 million ha |
| Crop insurance scheme | PMFBY |
Related UPSC Prelims PYQs
Which one of the following best describes the concept of ‘Small Farmer Large Field’?
Under the ‘Kisan Credit Card’ scheme, for which of the following purposes can farmers avail of short-term credit support?








