Revitalization of Rivers in India Draft Policy - Isha Guru Jaggi Vasudev

Revitalization of Rivers In India
Draft Policy Recommendation
FINANCING AND RISK MITIGATION: COMPENSATION OF NOTIONAL LOSS OF
FARMER INCOME
The challenge in the economic model proposed is that the earnings
of the farmer for the first few years after transition to the new cropping
system are below the threshold of their current earning of Rs. 75,000 per
annum. 24 The fact is that not many farmers will have the savings to fund
this cash outlay upfront. This would slow down the implementation of the
program because only a small percentage of the farmers will be able to
fund their livelihoods for the initial 3-5 year gestation before income rises
above their current earning threshold.
To tackle this, we are recommending that the government
compensate the notional loss of livelihood. We have assumed that the
farmer must have an annual surplus at least similar to their current
average earnings of Rs. 74,988. 25 With this assumption the additional
government cost per farmer would be Rs. 75,000 in the first three years of
the program.
The ecosystem services that rivers and the trees on river floodplains
provide, strongly justifies the compensation for the nominal loss in the
farmers’ income. Ways in which we could compensate for the loss of
farmers’ existing livelihood and minimize the risks involved during the
transition to tree-based agriculture are:
••
Conversion into horticulture crop by the farmer involves loss
of income till the start of commercial yield of the fruit trees.
Therefore, the notional loss of income for the farmer is to be suitably
compensated.
••
Financial support/linkages must be provided for farmers through
existing government schemes/programs, financial institutions, and
banks, so that they can smoothly transition from staple crop to agroforestry
fruit-tree cultivation. Easy loan with zero interest rates, and
long-term repayment plans may be provided to the farmers to help
stabilize their livelihood.
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