Idea 10 · Journey VII · The Road to 2047

From Beneficiary to Economic Actor

The long arc of Indian agricultural policy runs from treating the farmer as a recipient of support to treating the farmer as a participant in markets and institutions.

Across the past decade, a quiet change has taken place in how the Indian state addresses its farmers. Earlier policy tended to treat the farmer primarily as a beneficiary: someone to be shielded from scarcity, price collapse and the moneylender through subsidies, loan waivers and procurement. The newer vocabulary speaks of income, markets, enterprise, identity and data. It imagines the farmer as a participant — in markets, in collective institutions and in digital systems — rather than only as a recipient of their outputs.

This idea runs through the book's account of the years since 2014, and it is worth being precise about what the shift does and does not mean.

What has changed

The shift is visible in the architecture of programmes. Direct benefit transfers deliver support without intermediaries, and PM-KISAN has been continued through 2030-31, making it a standing feature of the farm economy rather than a temporary measure. Farmer IDs under AgriStack make farmers legible to lenders, insurers and advisory services as well as to welfare departments. Producer organisations and cooperatives are promoted as vehicles for bargaining power. Infrastructure finance targets the stretch of the value chain where farmers have historically lost value. Budget 2026-27 announced Bharat-VISTAAR, a multilingual AI advisory initiative, on the premise that farmers decide better with better information in their own languages.

Taken together, these instruments assume a farmer who acts — who chooses crops, joins institutions, uses credit, sells strategically and responds to information. That is a different starting point from one in which the state decides and the farmer receives.

What 2047 would require

The ambition of a developed India by 2047 sets a demanding test. With 43.0% of the workforce still in agriculture, according to PLFS 2025, prosperity for farming households cannot come from farming alone. It will require rising productivity per worker, a larger share of value captured through processing and allied activities, and a steady, voluntary movement of people into non-farm work that is genuinely better paid. It will also require attention to places that have lagged; the PM Dhan-Dhaanya Krishi Yojana, approved in July 2025 for 100 low-productivity districts, is one acknowledgement that national averages conceal wide disparities.

The transition from beneficiary to actor is neither automatic nor costless. A farmer cannot become an economic actor in a market that does not work, through an institution that does not function, on a record that is wrong. Participation also brings exposure — to price swings, to contractual disputes, to data systems whose rules farmers did not write. For many households, a floor of support will remain essential for years to come.

A farmer cannot become an economic actor in a market that does not work, through an institution that does not function, on a record that is wrong.

Several questions remain open:

  • Can the fiscal commitment to income support coexist with the investment in research, irrigation and infrastructure that long-term productivity demands?
  • Will digital systems widen farmers' choices, or chiefly make farmers easier to administer?
  • Can producer collectives mature into durable businesses rather than scheme-dependent entities?
  • How can reforms that ask states and farmers to accept change be built on consent rather than imposed?
  • Who is left out — tenants, women farmers, the landless — when policy is organised around the landholding farmer?

None of these has a settled answer, and an honest reading of the decade is that the direction has been set more clearly than the destination has been reached. The farmer of 2047 will be measured not by how much support they receive, but by how many real choices they are able to make.

The Farmer Ledger · Monthly

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