India’s farmers, the backbone of the nation’s food system, are trapped in a cycle of under-compensation and exploitation. Despite their critical role in feeding the country, the majority of farmers struggle to make ends meet, forcing them into practices that compromise both their livelihoods and the quality of our food. This report examines the harsh realities faced by Indian farmers, the systemic issues that perpetuate their exploitation, and the urgent need for fair compensation to ensure a sustainable and ethical food system.
78% of all farmers in India are smallholder farmers, cultivating less than two hectares of land. These farmers, who form the majority of India’s agricultural workforce, earn an average monthly income of just ₹7,522. This meager income is barely enough to cover basic expenses, let alone invest in better farming practices or cope with unpredictable weather and market fluctuations. The financial strain on smallholder farmers is further exacerbated by the fact that 43% of them sold their produce at a price lower than the cost of production in 2022. This means nearly half of India’s farmers are losing money on their crops, pushing them deeper into debt and poverty.
Adding to their woes, 76% of farmers do not benefit from the Minimum Support Price (MSP), a government mechanism designed to ensure fair prices for agricultural produce. The MSP system, while well-intentioned, is riddled with inefficiencies and limited reach, leaving the majority of farmers at the mercy of middlemen and volatile market prices. As a result, farmers often receive only a fraction of the value their produce commands in the market, while intermediaries pocket the lion’s share of the profits.
The consequences of this systemic exploitation are far-reaching. Struggling to make ends meet, many farmers resort to practices that prioritize short-term gains over long-term sustainability. Excessive use of pesticides, chemical fertilizers, and adulteration are often seen as necessary evils to maximize yields and reduce costs. While these practices may provide temporary relief, they degrade soil health, pollute water sources, and compromise the quality of food, ultimately harming both consumers and the environment.
The exploitation of farmers is not just an agricultural issue—it is a food security issue. When farmers are undercompensated and forced to cut corners, the entire food system suffers. Poor-quality produce, laden with chemicals and adulterants, finds its way to our plates, contributing to a growing health crisis. At the same time, the financial instability of farmers discourages the next generation from pursuing agriculture, threatening the future of farming in India.
Addressing this crisis requires a fundamental shift in how we value and compensate farmers. Fair compensation is not just a moral imperative; it is a prerequisite for producing high-quality, sustainable food. When farmers are paid fairly, they are more likely to adopt ethical and regenerative farming practices that benefit both people and the planet. This includes reducing the use of harmful chemicals, preserving soil health, and ensuring the production of nutritious, unadulterated food.
To achieve this, systemic reforms are urgently needed. Strengthening and expanding the MSP system to ensure it reaches all farmers, especially smallholders, is a critical first step. Additionally, creating direct market linkages between farmers and consumers can eliminate exploitative middlemen and ensure farmers receive a larger share of the profits. Supporting farmer cooperatives and providing access to affordable credit, technology, and training can also empower farmers to improve their productivity and income.
Consumers, too, have a role to play in driving this change. By choosing to support brands and initiatives that prioritize fair compensation for farmers, consumers can help create a more equitable and sustainable food system. Companies like Pepper Deer, which work directly with farmers to ensure fair pay and ethical practices, are leading the way in demonstrating how fair compensation can transform lives and improve food quality.
The plight of Indian farmers is a stark reminder that the quality of our food is deeply intertwined with the well-being of those who produce it. If we want better food, we must start by treating farmers better. Fair compensation is not just a solution to farmer exploitation—it is the foundation of a healthier, more sustainable future for all.
