Agrarian and Agricultural Crisis in India: Perspectives from Srijit Mishra and D. Narasimha Reddy
Understanding the Dual Crisis in Agriculture
Srijit Mishra and D. Narasimha Reddy emphasize the importance of viewing agriculture through the dual lenses of production and producers.
Both dimensions—agricultural and agrarian—are simultaneously in crisis.
The agricultural crisis arises from developmental neglect, poor programme design, and insufficient resource allocation.
The agrarian crisis is a livelihood threat affecting the survival of the rural population dependent on agriculture.
The crisis is structural and affects individual farmers deeply.
This prolonged crisis has occurred over nearly two decades, even as India’s overall economy has grown rapidly.
Marginalisation and Farmers' Distress
In 2001, more than 60% of operational holdings were less than 1 hectare, and 20% were between 1–2 hectares.
Farmers’ suicides, linked to indebtedness, reflect the deeper agrarian distress and occur at higher rates than among non-farmers.
Institutional support structures are urgently needed to organize farmers and address their issues.
Community-managed sustainable agriculture targeting marginal and small farmers in dry, drought-prone areas is essential.
Returns from cultivation are declining, increasing reliance on markets for expensive inputs.
Research and extension failures in rain-fed areas have led to a dependence on unregulated input sellers and supplier-driven demand.
Rural poverty is intrinsically linked to agricultural performance.
Suicides are a symptom—not the entirety—of the crisis, indicating that many more farmers are suffering silently.
The crisis is widespread and not limited to high-suicide regions.
Technology and Institutional Alternatives for Sustainable Farming
Low returns to cultivation are central to the current agrarian crisis.
The Green Revolution increased production but was resource-intensive and inaccessible for small farmers.
Financial products introduced to manage uncertainty often increased farmer risk instead of reducing it.
Reducing cultivation costs is more crucial now than boosting input use.
Knowledge-centric technologies are needed over input-centric ones, especially those that utilize local resources and strengthen social capital.
Empowerment structures such as federations of Self Help Groups (SHGs) are essential for organizing farmers at the grassroots.
Government departments must be restructured to enable farmer empowerment rather than being administrative burdens.
Innovation in institutions, government delivery systems, and cost-saving technologies is critical to revive both farming and the farmer.
Successful pilot experiments suggest that such a transformation is indeed achievable.
High Value Agriculture in India: Opportunities and Challenges for Smallholders
Growing Demand and Smallholder Potential
Sustained economic growth, urbanisation, and globalisation are driving rapid demand for high value food commodities such as milk, meat, fish, fruits, and vegetables.
These demands are expected to double from current levels, offering a critical opportunity for the millions of smallholder farmers (80% of holdings are < 2.0 ha).
High value agriculture is labour-absorbing and offers comparative advantages over staple crops in terms of income and employment.
Globalisation also creates export opportunities for these commodities, although access and capacity remain concerns.
Barriers to Diversification and Market Access
High perishability of these commodities requires immediate transportation, storage, or processing, but infrastructure is lacking in India.
Markets for these products are concentrated in urban and semi-urban areas, while transport facilities are often inadequate for smallholders in remote locations.
High transaction costs and lack of market access discourage producers from shifting to high value agriculture.
Market Access and Urbanisation
Market access is critical and is influenced by urbanisation and road density.
By 2020, urban population was expected to reach 35% of India’s total, driving demand for high value commodities.
Most production happens in rural areas and must be efficiently transported to urban centres to meet consumption needs.
Regional Distribution of High Value Agriculture
High value commodities contribute nearly 40% of India’s gross agricultural output.
Fruits dominate in the east/west coasts and the north-west/north-east regions.
Vegetables are concentrated in the northern, eastern, and north-eastern regions, with lowest concentration in the north-west.
Dairying dominates in northern and western India, including parts of the south-west.
Meat and egg production are strong in eastern, north-eastern, and southern India, and in western areas near cities.
Poultry is dominant in the south, while small ruminants dominate in the east and west.
Growth, Impact, and Equity Implications
High value agriculture is growing faster than other agricultural segments.
Infrastructure, especially transportation in near-urban districts, is essential for sustaining this growth.
This growth benefits smallholders through better income and employment opportunities and is more equitable.
Activities like dairying that involve smallholders promote inclusive development.
High value agriculture is labour-intensive, which further boosts rural employment.
Producers are adapting to demand changes by modifying their production portfolios.
Spatial Characteristics of HVC Regions
Fruits dominate intensive HVC regions, followed by milk, vegetables, and poultry.
In extensive HVC regions, milk is the lead commodity, followed by vegetables, fruits, and poultry.
HVC is prevalent in areas with high rainfall, low irrigation, smaller holdings, and more labour.
Smallholders are more likely to diversify, making high value agriculture-led growth more equitable.
Constraints and Policy Support for HVC
Technology, infrastructure, and policy gaps hinder the potential of high value agriculture.
Greater production and market risks exist for producers; hence insurance, inputs, and improved tech are essential.
HVC is capital-intensive, but most smallholders lack investment resources.
Thus, greater involvement of financial institutions is critical to sustain growth.
Mitigating Market Risks and Enhancing Infrastructure
Markets for HVCs are mainly urban, raising costs for remote producers.
Price volatility is a major issue, with prices dropping rapidly even with small supply increases.
Solutions include:
Special rural HVC markets
Private sector participation through producer associations, co-operatives, and contract farming
Infrastructure and Policy Initiatives
HVC requires unique infrastructure like refrigerated transport, cold storage, and immediate processing.
These are currently inadequate and demand significant investment.
Recently, the Government of India has launched initiatives focused on food processing and strengthening backward linkages.
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