State of Marginal Farmers in India 2025 Report

Background of the report

State of Marginal Farmers in India 2025 Report: The State of Marginal Farmers in India 2025 Report presents a focused assessment of India’s smallest landholding cultivators and their engagement with cooperative institutions. Marginal farmers are defined as those owning less than one hectare of land. The report positions cooperatives as key instruments for poverty reduction, livelihood security, and rural transformation.

Marginal farmers form the backbone of Indian agriculture in numerical terms. However, their structural disadvantages continue to limit income growth and resilience against economic shocks.

Static GK fact: As per agricultural census trends, marginal farmers have consistently increased in proportion since the 1970s due to land fragmentation.

Landholding structure and vulnerability

Marginal farmers constitute around 65.4% of India’s total farmers, yet they control only 24% of the cultivable land area. This skewed distribution directly affects productivity, surplus generation, and bargaining power.

Their vulnerability arises from small land size, weak access to institutional credit, high input costs, limited market linkages, and inadequate public service delivery. These constraints intensify exposure to climate variability and price volatility.

Static GK Tip: Land fragmentation in India accelerated after the Green Revolution due to inheritance laws and population pressure.

Role of cooperatives and PACS

For marginal farmers, Primary Agricultural Credit Societies (PACS) and agricultural cooperatives act as the closest institutional interface. These institutions provide short-term credit, input distribution, storage facilities, and access to government schemes.

The report underlines that cooperatives function as local anchors for development, especially where formal banking penetration remains limited. Effective cooperative engagement enhances farm viability and stabilises rural livelihoods.

Static GK fact: PACS are registered under State Cooperative Societies Acts and operate at the village or panchayat level.

Barriers to cooperative engagement

Several structural and operational barriers restrict effective cooperative participation. At the farmer level, limited awareness of schemes, bureaucratic procedures, long travel distances, and low digital literacy reduce participation.

At the institutional level, inadequate capitalisation and limited credit availability constrain PACS operations, as observed in states like Uttarakhand and Maharashtra. Shortage of trained personnel and logistical challenges further reduce service uptake.

Infrastructure gaps, including weak physical facilities and shallow digitalisation, hinder transparency and outreach. The report also highlights persistent gender gaps, with cooperatives remaining male-dominated despite women’s significant contribution to agriculture.

Static GK Tip: Women account for nearly half of India’s agricultural workforce but remain underrepresented in formal institutions.

Key recommendations

The report recommends strengthening PACS visibility through community campaigns, digital tools, and diversification of services beyond credit. A mission-mode approach aligned with Sahkar Se Samridhi is proposed to prioritise farmer-centric cooperative reform.

Institutional support measures include reducing administrative hurdles, promoting financial and digital inclusion, and building Digital Public Infrastructure (DPI) through a cooperative stack. A dual architecture model, where PACS coexist with Farmer Producer Companies (FPCs), is highlighted using Bihar’s experience.

Static GK fact: FPCs are registered under the Companies Act and focus on collective marketing and value addition.

Static Usthadian Current Affairs Table

State of Marginal Farmers in India 2025 Report: