The Economic Survey has highlighted a significant shift necessary for smallholder farmers to boost their incomes. Traditionally, crops like rice, wheat, millets, pulses, and oilseeds have been the backbone of India's agricultural sector. However, the survey emphasizes the need for farmers to diversify into high-value agriculture, including the cultivation of fruits and vegetables, as well as engaging in fisheries, poultry, and dairy farming. This diversification is crucial for enhancing income levels and ensuring sustainable growth in the agricultural sector.
The Need for Diversification
India's agriculture sector has demonstrated robust growth,
with an average rate of 4.18% over the last five years. This growth is crucial
for the overall economic development of the country. Despite achieving record
food grain production of 329.7 million tonnes in 2022-23, with oilseed
production reaching 41.4 million tonnes, the sector's reliance on traditional
crops poses limitations on income growth for smallholder farmers. In the
following year, 2023-24, food grain production saw a slight dip to 328.8
million tonnes, primarily due to poor and delayed monsoon rains. However, there
was a marginal increase in the production of other crops, such as nutri cereals
and oilseeds.
UPAg Department of agriculture and farmers welfareEmphasizing Allied Sectors
The survey highlights the growing importance of allied
sectors such as animal husbandry, dairying, and fisheries in enhancing farmers'
incomes. These areas offer significant potential and should be emphasized more
to boost overall agricultural income. Crop diversification towards oilseeds,
pulses, and horticulture can be promoted by addressing key issues like
investment in agri-infrastructure, credit accessibility, and the establishment
of appropriate market institutions.
The Role of MSP
Minimum Support Price (MSP) has been a vital tool in
incentivizing crop diversification. The survey notes that MSP has a positive
and statistically significant effect on retail prices of all crops, with a more
substantial impact on crops where procurement is substantial, such as paddy and
wheat. This underscores the importance of continuing to support MSP while
encouraging farmers to diversify their crop choices. However high value
agriculture(fruits, vegetables, dairy, etc) are purely market driven and do not
require MSP support.
Aligning Production with Agro-Climatic Characteristics
Efforts must be made to align production patterns and
practices with the agro-climatic characteristics and natural resources of
various geographies. This approach ensures sustainability and efficiency in agriculture.
Additionally, research and development, along with the promotion of digital
technologies in agriculture, can significantly enhance farm income. Improving
the quality of seeds and promoting organic and natural farming practices are
crucial steps toward realizing sustainable agriculture.
Enhancing Private Sector Investment
The survey also advocates for increasing private sector
investment in agriculture. Investment in technology, production methods,
marketing infrastructure, and reducing post-harvest losses is essential. A
greater focus on post-harvest infrastructure and the development of the food
processing sector can help reduce wastage and losses, increase the length of
storage, and ensure better prices for farmers.
Conclusion
The Economic Survey makes it clear that the path to
increased income for smallholder farmers lies in diversification towards
high-value agriculture. By leveraging the potential of allied sectors and
addressing critical issues in agri-infrastructure and market institutions, farmers
can achieve better incomes and contribute to the overall economic growth of the
country. Sustainable practices, supported by research and development and
enhanced private sector investment, are key to realizing this vision.
We with our tool “Fasal Salah” are always advising farmers
for crop diversification and making their agriculture climate resistant.
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