State of Marginal Farmers in India 2025 Report

1. The State of Marginal Farmers in India 2025 Report was released to examine the condition of marginal farmers.
2. The report focuses on cooperative engagement as a pathway for rural development.
3. Cooperatives are identified as catalysts for poverty reduction, livelihood security, and rural transformation.

Profile of Marginal Farmers in India

1. Marginal farmers are defined as cultivators owning less than one hectare of land.
2. Marginal farmers constitute approximately 65.4% of India’s total farming population.
3. Marginal farmers collectively own only 24% of the cultivable land area.
4. Small landholding size places marginal farmers among the most vulnerable groups in agriculture.

Vulnerabilities and Structural Constraints

1. Marginal farmers face constraints due to limited access to institutional credit.
2. Limited access to quality agricultural inputs affects productivity.
3. Weak market access reduces income realization.
4. Inadequate access to public services compounds livelihood insecurity.

Role of Cooperatives and PACS

1. Primary Agricultural Credit Societies (PACS) are the most accessible institutions for marginal farmers.
   • PACS are village-level cooperatives providing credit, inputs, and basic agricultural services.
2. Agricultural cooperatives serve as proximate and consequential institutional touchpoints.
3. Cooperatives support both agricultural production and livelihood needs.

Barriers to Cooperative Engagement

A. Farmer-Level Constraints

1. Limited awareness of cooperative schemes reduces farmer participation.
2. Lengthy and bureaucratic procedures discourage engagement.
3. Long distances to cooperative offices increase transaction costs.
4. Low levels of digital literacy restrict use of digital services.

B. Funding Constraints

1. Inadequate capital availability weakens PACS operations.
2. Insufficient credit availability limits service expansion.
3. Funding constraints are evident in Uttarakhand and Maharashtra.

C. Service Delivery and Capacity Issues

1. Cooperative service uptake remains low among marginal farmers.
2. Limited local capacity affects quality of service delivery.
3. Shortage of trained staff reduces operational efficiency.
4. Geographic and logistical barriers limit outreach.

D. Infrastructure and Digital Deficits

1. Inadequate physical infrastructure hinders cooperative functioning.
2. Shallow digitalisation reduces transparency and outreach.
3. Infrastructure deficits are particularly visible in Uttarakhand.

E. Gender Gaps in Cooperatives

1. Cooperatives remain male-dominated institutional spaces.
2. This persists even in regions where women contribute significantly to agriculture.
3. Women play a central role in household economic activity despite limited representation.

Recommendations to Improve Cooperative Engagement

A. Strengthening PACS Visibility

1. PACS visibility should be enhanced through broadcast campaigns.
2. Community-level awareness initiatives should be undertaken.
3. Digital tools should be leveraged for outreach.
4. PACS should promote their diversified roles beyond credit provision.

B. Mission-Mode and Grassroots Approach

1. A mission-mode approach is recommended for cooperative reform.
2. The approach aligns with the vision of “Sahkar Se Samridhi”, meaning prosperity through cooperation.
3. A dedicated cadre called Sahkar Shakti should be created.
   • The Sakha/Sakhi Model refers to trained male and female facilitators at the grassroots level.

C. Institutional and Digital Support Systems

1. Administrative procedures should be simplified.
2. Financial inclusion of marginal farmers should be expanded.
3. Digital inclusion should be strengthened.
4. Development of Digital Public Infrastructure (DPI) is essential.
5. DPI refers to shared digital systems enabling scalable service delivery.
6. A Cooperative Stack should integrate cooperative services digitally.

Emerging Institutional Models

1. The report highlights the importance of a dual institutional architecture.
2. Under this architecture, PACS operate alongside Farmer Producer Companies (FPCs).
   • FPCs are farmer-owned companies that enable collective marketing and value addition.
3. This coexistence is prominently observed in Bihar.
4. Together, PACS and FPCs form a unique ecosystem of collective farmer institutions.