- April 30, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Section: Indian Economy
The National Bank of Agriculture and Rural Development (Nabard) will create a Farmer Distress Index (FDI)to identify the farmers, who are in real need of support and assistance.
According to a recent study by Nabard, more than 60% of the ‘very high’ and ‘high’ distress small and marginal farmers did not get loan waiver benefits in the last many years.
Farmers with largely non-irrigated lands who grow lower-value crops, especially those which are not procured by the government at minimum support prices have little access to the financial system.
The index will integrate high frequency data on weather conditions, climatic conditions, debt burden on farmers, agricultural commodities and the market.
It would measure variables such as monsoon rains, excessive rainfalls, drought and dry spells, variations in temperature and soil moisture, yield of major crops in each district, area under irrigation, depth of underground water and unusual frost. Marketing opportunities available to the farmer including MSP support will also be assessed.
The index will also have metrics on the existing level of debt burden of the farmers, their access to crop insurance.