India’s agricultural policy should now focus on raising farmers’ incomes rather than simply increasing crop production, according to S. Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM). Speaking at an agriculture event on 24 July, he said India has made significant progress in food production over the past decade, but the next phase of agricultural reforms must prioritise income growth through crop diversification, better markets, value addition and technology adoption.
India has achieved record production in several major crops, but higher output has not always translated into higher earnings for farmers.
Mahendra Dev said future agricultural policies should measure success by improvements in farmers’ incomes instead of production volumes alone. He stressed that increasing profitability requires better market access, stronger value chains and greater investment in food processing.
The EAC-PM chairman said farmers should be encouraged to diversify beyond traditional cereal crops.
He highlighted horticulture, livestock, fisheries and agro-processing as sectors that can generate higher returns while reducing dependence on a few major crops. Diversification can also make farming more resilient to climate change and market fluctuations.
Better Coordination Between Centre and States
Mahendra Dev also called for stronger coordination between the Centre and state governments.
Many agricultural reforms, including marketing, irrigation, extension services and value-chain development, require close cooperation between both levels of government. Better implementation, he said, is essential if policies are to improve farmers’ livelihoods.
The chairman emphasised that digital agriculture, mechanisation and food processing will play a critical role in the next phase of agricultural growth.
He said improving storage, logistics and processing infrastructure can help farmers earn more by reducing post-harvest losses and enabling them to sell higher-value products instead of raw produce.
Why This Matters for Farmers
The statement reflects a broader shift in India’s agricultural strategy. Rather than focusing only on increasing production, policymakers are now placing greater emphasis on farm profitability.
If these recommendations translate into policy, farmers could benefit through:
- Better market opportunities.
- Greater investment in food processing.
- Support for crop diversification.
- Wider adoption of digital technologies.
- Improved coordination between central and state schemes.
The EAC-PM’s recommendations are likely to influence future discussions on agricultural policy. The key question now is how quickly these ideas are reflected in government programmes, particularly those aimed at crop diversification, value addition and farmer income. If implemented effectively, the shift from production-centric to income-centric agriculture could reshape the way India’s farm sector is supported over the coming years.
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