Wednesday, December 19, 2018

Doubling the farmer's Income by 2022 is not unachievable




India is major agriculture economy of world. Agriculture is major produce of agriculture commodities. India is also a major consumer of agriculture produce. At one side local producer are not getting the enough return from their produce at another side import of agriculture commodities are increasing in India. Indian is importing agriculture produce of 1,15,434 crore (2014-15-NFSM) Indian Rs. The number may have risen by 2018. Indian is exporting agriculture produce of 2,39,454 crore (2014-15-NFSM) Indian Rs. The number may have risen by 2018. As per data of USDA India has imported agriculture commodities of 16.9 billion USD or Rs 1,18,300 Crore in year 2016. Mainly India import What, Pulses, Treenuts, Cereals and Edible oil (palm oil, soybean oil and other vegetable oil). These figures show that India is not self-sufficient in food production. AT another side farmer don’t get the market for his produce and he throw his produce after distress selling. 

Recently our Prime minister set a vision of doubling the Indian farmer's income by 2022-23. After analyzing the factors, it is not a day dream. We can achieve this vision of doubling the farmers income. We have largest cultivation land in world, We have market to consume our produce. We must study the fundamentals and We can achieve this target. 




Increase in Agriculture Productivity 

Indian agriculture productivity is very low in world. There are chances of improvement in productivity by 2-3 times. Efficient uses of farm inputs, natural resources, improvement in varieties, mechanization of agriculture, control of post-harvest losses. India have a large agriculture land, there are two-three cultivation season, different climatic zones. Indian have largest population of cattle. But still milk productivity in India is very poor. There huge scope of meat, production egg production. India has very long coastal line, there is huge potential of fish production and export. Indian need to explore natural resources to its full potential up to sustainable levels. For example; as per World Bank Data Global cereal productivity is 3967 Kg/Hectare, while productivity in India is 2993 Kg/Hectare. Cereal productivity in china is 6029 Kg /Hectare, in USA 8143 Kg/Hectare in Europe Europe 5363 Kg/Hectare, in this example of productivity of cereals, India has huge space to improve the productivity. Same facts are with other agriculture produce. 

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Area and crop Specific Value Chain establishment 

In depth study we find that we have production, but we don’t have infrastructure and industries for post-harvest handling of agriculture produce. Farmers throw the Onion, Potato, Tomato, Sugarcane on road. Nothing should go to road. Good should be come out from farm and everything must be processed or stored. In a civilized society it is not justified that food is thrown on road and at another side hungry citizen is sleeping on road. Potato can be dried, tomato can be dried, Onion can be dried but it doesn’t make any sense if farmer throw it on road. In first step few value chains can be established it can be studied and these chains can be replicated. This will generate the new employment in rural area. If it is potato grown area than every potato must be processed. 




Improvement on Quality of agriculture produce 

Quality of Indian agriculture / products are not as per international markets. There must be homogeneity in quality, produce should be bold and beautiful, Nutrition value of agriculture food production should be improved. Quality food production will give good value to farmers, it has long self-life, it is easy to process. Importance of quality should be explained to farmers so that inferior quality should not come out from farm. Even in distress selling condition good quality fruit and vegetable get higher rates than market price. It is also easy to sell the quality material. 

Promotion of Local / Domestic produce 

India is rich in agriculture biodiversity. We have many cultivation climatic conditions, We have different regions, we have different crops, we have different varieties of a particular crop. Govt should promote local dishes, local food, nutritional value of local crops. We have seed that since last 9-10 years there is huge promotion of Olive oil on health ground, on cosmetic ground. major food, TV channel, major Food program, famous chef is cooking the food in olive oil. What is this? This is simply any introduction of new edible oil in Indian kitchen. We can run these long term program and create an awareness among people about our local food / food on health benefit ground, taste ground, food supplement any other way. Local produce will find the market and import of agriculture produce will be come down. Govt should also promote health hazards of imported food items. Ultimately the benefit will go to the local farmers. 




Consolidation of Agriculture land 

Govt should consolidate the non-economical size of marginal and small size land. The existing owner should be backed with assured employment in agro processing industry or social benefit with assured income to very family. Land consolidation is very important in increase of agriculture production. Fix cost will be come down, production will increase, and profit will increase. Price fo agriculture produce will come down Indian market will become more competitive for imported agriculture commodities. 

Removal of MSP. 

MSP plays a major hurdle of the market it disturbs the normal economic cycle of Agriculture cycle production. It also gives support to commodity price at lower side. It makes a space for imported agriculture commodities. Market backed price will lead to the judicial production of agriculture commodities. Farmers will not produce the over produced Agriculture commodities. Demand and supply will be balanced, and farmers will not face the problems of distress selling. Resources will be utilized in non-economic production of agriculture crops. Every farmer doesn’t get the benefit of the MSP. It increased the dissatisfaction among the farmers. Power centric farmers use these benefits. Benefit of MSP don’t go to farmers, but effect of MSP is transferred to the consumers. 

Fare price benefit to producer 

After the selling the commodity by the farmers processor process the produce and it reaches to end consumer. Due to price inflation, value addition any profit made by the value chain cycle, after a level must be goes back to the producers. In the cases of vegetables farmers sell it at very low price during the good crop production season but processed food items are always sold at fix. price. Farmers will not come under pressure of distress selling. He will have an opportunity to make money even in the condition of distress selling. 




Increase in Export of agriculture commodities.: 

Govt should conduct the study of major market for Indian agriculture commodities. Govt should work on local processing instead of export of raw material/ commodity. Govt should establish the tough food standards as per the international market. So that Indian should not lose the opportunity of processing of commodity. This will generate the income for local processor. Special in China, USA, Russia, Europe have only one cropping season. India can supply the fresh fruit, vegetable and other agriculture produce to these countries during the winter period. 

Investment Agriculture technology up-gradation 

Instead of assistance / waiver Govt should invest in technology up-gradation. In the cases of waiver of assistance money goes to the corruption and it doesn’t not reach to the right beneficiaries. Govt should invest money on agriculture market infrastructure development, Storage development, processing development. Today world is moving toward the precision farming, block chain technology, automation of agriculture operations, soil less farming. The loan waiver and financial assistance amount will open the door of new employment opportunity. New technologies will come in market and cycle of agriculture finance will not break. It will satisfactory for the honest farmers and traders.




Promotion and consumption of processed agriculture food. 

Govt should promote the processed food. Fresh food has short self-life, more handling, transportation and marketing cost. Processed food will give the new employment opportunity to the rural youth and entrepreneur. Prices of processed food are stable, and consumer can be safe from the immediate inflation of the agriculture commodities. 

There are many other steps that we can increase the income of Indian farmers. Annually 1,18,000 Crore import bills is not a small amount. With judicial decision and long-term steps this amount can be go to the pockets of Indian farmers. If we will not do then imported item will increase the share in Indian market. That will be additional loss of forex, local employment, loss of income of Indian farmers.

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