Steps for farmers to boost Indian economy

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Agriculture is central to the Indian economy. In India, about 80% of farmers are smallholders -which is generally considered to mean that they have two hectares or less of land. More is needed to be done since crop yields in India are still 30% to 60% of the best sustainable crop yields achievable in the farms of developed and other developing countries. Poor infrastructure and unorganized retail means India has one of  the world's highest levels of post- harvest food loss. 

It is now a time for change. We must be prepared to face long outstanding issues and new realities. Natural resources on which agriculture is based - Land and Water, above all, are being degraded and there is growing competition for their use. Climate change is already severe and aggravate this situation, making agriculture more risky, will have even greater impact in future. 

In such context, public-private partnership (PPP) model be the game changer India's agriculture sector needs.With the Government providing and co-financing the back-end of the value chain, Farmer contribution and the private sector doing the rest, agriculture sector could remain a primary engine of rural growth and poverty reduction in India. 

Following are the three ways which PPPs could do -

1. Invest in smarter value chains - The food processing industry must do more than just increase the shelf life of food, preserve food nutrients and fortified products. Instead, supported by government and private investments, it should also look at providing farm extension services, enhance price realization, cut out intermediaries and improve the supply chain through forward and backward linkages. Government besides funding, will  be able to create an enabling environment for private investment through tax rationalizations, duty exemptions, increase in public spending, priority sector lending and FDI. 

2. Access to credit, technology and markets - PPPs could help by Biotech stand to transform agriculture, raising its production levels and outputs. It can equip growers with techniques for developing high- yield crops, controlling pests, better utilizing waste water and focusing on nutrition. PPPs can help replicate this success in crucial areas such as pulses, oil seeds, which are highly import- intensive. In the same manner, PPP  projects, when targeted at helping farmers connect with their market places and financial institutions for micro-funding, can bring in massive alterations in the rural economy.

3. Farmers resilience to environmental shocks - Farmers are constantly effected by adverse weather and environmental conditions that spell disaster for their produce such as droughts and floods. PPPs can help the sector through insurance and allows farmers to minimize risks.      

The challenges involved in growing and earning more are - 

- Buyers monopolize as farmers are unable to bargain in the market.

- Limited infrastructure for storage reduces farmers' bargaining power further.

- Inability to shift to remunerative crops due to lack of knowledge.

- Water and water security. There are possible solutions but technical skills and        leadership to manage demand are needed at the village level.

- Precarious finances prohibit risk-taking as failure can be a life and death                situation for a farmer. 

In the light of above, Farmers can follow collectivization for succeeding. While it has its challenges, if farmers come together, then this single most critical step would help them to -

-  Share infrastructure like storage.

-  Optimally tap common resources like water.

-  Negotiate for better crop prices with buyers.

- Negotiate for better input prices.

- Cooperate and acquire knowledge for growing better price yielding crops.

 The Government - can contribute - 

- Ensure alternate marketing mechanisms as competition to mandis to curtail            exploitation. 

- Provide infrastructure to villages. 

- Enhancing agricultural knowledge creation and transfer.

- Provide affordable crop insurance with a quick settlement.

- More non-farming jobs to reduce pressure on land.

- Quick delivery of basic services like health and education so that farmers are not    crippled by debt for these.

This is how the Farmers and the Govt. can contribute to make India a $ 5 Trilion economy, pace depends upon of the execution of policies. 


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