Budget 2018: Why record harvests bring no respite to struggling farmers

Indian farms produced record harvests in 2017, and the government’s agricultural Budget 2018 rose 111% over four years to 2017-18. Yet, prices crashed, 8,007 farmers committed suicide in 2015, unpaid agricultural loans rose 20% between 2016 and 2017, and 600 million Indians who depend on agriculture are struggling to get by.

This is the situation that faces the Bharatiya Janata Party (BJP) government as it heads into its last full budget before general elections in 2019, at a time when Prime Minister Narendra Modi has promised a doubling of farm incomes by 2022.

The agriculture sector will not just watch how much money is set aside in the 2018-19 budget but also how it is used, as the National Democratic Alliance (NDA) also tries to woo disaffected farmers before upcoming assembly elections in eight states–Karnataka, Madhya Pradesh, Chhattisgarh, Rajasthan and the northeastern states of Meghalaya, Mizoram, Nagaland, and Tripura.