The interim budget announced a support of Rs6000 to small and marginal farmers per year under the newly Pradhan Mantri Kissan Samman Yojna (PMKSY). This is a modest beginning but the road to a debt-free life of farmer is still a long way.

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Most small and marginal farmers undertake subsistence farming, which is just enough for their survival. This income can hardly fulfil their other social obligation and cash requirement. Most farmers undertake loans from the private lenders at rates as high as 36-50% and they lose most of the money in repaying the debts. . So, what's the way out?

This is a more systemic issue which needs to be looked at from a different lens. Infusion of cash support in the ailing system may give a lease of life but the impact will be temporary. Will providing regular income support to farmers be helpful in bringing about a change in their lives? Only time will tell.

As regulators or administrators, we may have to look at responsive governance to improve a farmer's economic condition and find more effective ways of supporting him. Central and state governments should look at ways to deal with their problems at the very beginning of the agricultural season. They could play a key role in promoting and facilitating trade between the private sector and farmer groups. This will also give the administration a fair idea of the sale of key commodities produced in the state, and thereby gauge the profits of the agricultural community.

Government could also look at facilitating logistics and connectivity to enable traders and private sector companies move agro commodities in bulk from production centres to consumption centres. Ensuring easy availability of warehouses or cold storages, rail sidings, packing material; state assisted collection centre services, grading sorting lines, crates and labour facilitation will ease the procurement of commodities by private traders, processing companies or even state agencies. Further, if the procurement is digitally mapped the state government will have high visibility of each transaction taking place in the state.

The states can further map the small and marginal farmers and promote community dairy practices among them so that they can productively use the available farm labour during the lean period of 6-8 months. This can be helpful for rural households to generate some extra income and earn profit. For the state, it will be helpful to generate employment opportunities for landless labours and marginal farmers.

Let's pave the way from Kisan Samman to Krishi Samman.

The author is a leader of the food and agriculture vertical at PwC India