Concerns Loom Over Indian Farmers Under the Covid-19 Lockdown

A Rabobank survey conducted during the first and second phases of the Covid-19 lockdown in India reveals farmers’ concerns, as well as opportunities for farm input companies and the government to help farmers to handle the situation better. This could pave the way for companies and government policy makers to more effectively position themselves in farmers’ eyes.

Uncertainty Prevails for Indian Farmers Under Lockdown

Rabobank conducted a dipstick survey in the Indian states of Maharashtra and Madhya Pradesh (MP) with a sample size of 94 and 95 farmers, respectively, when farmers were on the cusp of the previous Rabi (winter) season and the Zaid (summer) season. Part of the data collection happened in the first phase of lockdown (Lockdown 1.0) between March 25, 2020 and April 14, 2020, while the remaining happened during the second phase of lockdown (Lockdown 2.0) between April 15, 2020 and May 3, 2020. Results revealed that 69% of the farmers surveyed were extremely concerned about the Covid-19 situation. While 82% felt the lockdown would impact their farming activities, 87% still supported the government for administering the lockdown, indicating their solidarity with and faith in the central leadership and their commitment to fight the pandemic.

During the lockdown, farmers experienced various problems and cited in the survey a number of concerns that haunted them. Among their concerns, 47% cited unavailability of farm inputs – a result of shop closures (experienced by 30% of respondents). Even when shops were open (reported by 17% of farmers), 30% noted the unavailability of vehicles for transporting crops and 17% cited the unavailability of labor for harvesting. Moreover, the closure of agricultural markets (mandis) and the unavailability of cash were expressed as key concerns.

It was observed that uncertainty loomed more distinctly during Lockdown 2.0 than in the previous one, revealing farmers’ increasing worries that the period of lockdown would be extended unabated. When asked when normality would be restored, 54% of farmers were unclear – 22% mentioned long durations (three months or more), while 32% were unable to guess any time period, indicating uncertainty. Also, opinion was divided among farmers about whether they would likely change their crop or cropping practices in the upcoming Kharif (2020) season: 90% of farmers in Maharashtra were keen to change their cropping approach in the upcoming season, whereas only 55% of the farmers in MP wanted to change. With uncertainty prevailing, farmers were also unable to spell out the detailed nature of the changes that they would undertake in the upcoming farming season as they were choosing to wait and decide based on the evolving situation.

Way Forward for Companies

The plight of farmers offers companies potential lessons and the chance to turn these issues into opportunities. First of all, communication affirming support for farmers in tough times would help companies connect with farmers and create a positive brand image that they could build now and leverage in the future. This would, in some way, allay farmers’ concerns. Digital initiatives, which companies are adopting in bits and pieces, remain a cost-effective way to target and communicate with farmers, but a more pragmatic approach is required to embrace digitalization in a big way and encircle farmers in the entire sphere of activities. It is a win-win situation that allows companies to use their marketing communication budgets more effectively.

The time has also come to explore new business models in order to propel initiatives like cooperative farming, wherein farmers unite to share common practices in contiguous farms (maybe through floating Farmer Producer Organizations or FPOs) to bring in efficiencies and economies of scale, even with farmers of small and marginal land holdings. As labor remains a key issue, farm mechanization is also the way to go. Furthermore, models for farm produce procurement that integrate digital means need to be explored to avoid farmers’ dependence on agriculture markets (mandis) to sell their produce.

Way Forward for Government Policy Makers

Communication channels also remain key for the government to maintain farmers’ support. Digital channels remain effective because of granular targeting and cost advantages that the government can look to utilize in ways similar to companies. Major policy changes are required to facilitate convenience for farmers. One such avenue is delivering agrichemicals to farmers’ doorsteps. The current legal framework has restrictions on direct delivery of pesticides to the farmgate. This needs to be reconsidered, as the necessary disintermediation can make stock delivery efficient and also enable companies to shift from a product-based business model to a service-based business model for farmers. This would also ensure the quality of the farm inputs received by farmers, reduce delivery of spurious materials, and provide the correct advisory on the usage of the products.

Direct Benefit Transfer (DBT), where funds like fertilizer subsidies can be directly transferred to farmers, has been on the government’s agenda to implement for some time. While considerable progress has been made, it is still far from being completely and efficiently operational. Focus is required from the government to implement this, so that the benefits can be extended to the farmer beyond making subsidy payments. Difficult situations as these would also allow the government to pass relief directly into the bank accounts of farmers. As farm input companies also have promotional budgets for their products to be spent, giving them access to the bank accounts – even to the extent of allowing them to distribute promotional benefits – would open up new avenues for companies to reach farmers and challenge competition.

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