The agriculture sector is characterized by instability in incomes because of various types of risks involved in production, market and prices. They carry on fighting risks in production, weather and disaster, price, credit, market and those in policy. Further, it leads to defaults and indebtedness. Uncertain policies and regulations such as those of the Agricultural Produce Market Committee (APMC Act), besides low irrigation coverage, drought, flooding and unseasonal rains, are some other factors that hit farmers hard along with the slowdown in agricultural growth, the costs of farm inputs have increased faster than farm produce prices. The cost of capital too has increased manifold over the years.
This turned agriculture into an unprofitable occupation and compelled farmers, especially the small and marginal, to borrow costly money from informal sources of credit, which deepened the crises.
There is a need to solve the problems of low farm produce prices and high cost of borrowings. We will be able to make the farmers happy after implementation of our Project-3 after implementation of Project-1 and 2.