Why is average land holding declining in India?The average size of land holding has been declining in India since Independence due to –
increase in population,
diversion of agricultural land for industrialization and urbanization
divisions within the family.
Currently 86% farmers are small and marginal farmers. Such small land holdings have made agriculture non-viable for a majority of farmers.Advantages of Contract Farming
a) It will bring more technology and modernization to agriculture as seeds and inputs are given by business houses.
b) Stabilize price for farmers as prices would be fixed in the contract
c) Higher Yield and Productivity → increase the income for farmers
d) Boost to Food processing sector
Disadvantages of contract farming
a) Excludes small farmers because usually business deal is signed with medium and large farmers or FPOs
b) Market risk as Companies decline to procure crops if demand is less or due to raising quality issues.
c) Production risk as if production cost is high then companies do not provide any help
d) Bargaining power of farmers is weak so they are not able to bargain good deals
Way forward
Contract farming can become gamechanger for small tea growers in Assam
Corporatization of small farmers in into FPO (Farmer Producer Organisations)
More farm insurance
Implementation of Model contract farming act by NITI aayog
Q – What are the present challenges before crop diversification? How do emerging technologies provide an opportunity for crop diversification?
Present challenges before the Crop Diversification –
Historical dominance of rice and wheat – Primarily due to Green Revolution
Cerealization of agriculture – Cereal Anxiety led to offering MSPs for the major cereals
Increasing income causing changes in consumption → coarse cereals considered inferior → government popularising coarse cereals
Increasing prices of food grains, causing farmers to shift from non-edible cash crops to food crops
MSP Culture → political pressure to maintain MSP and periodically increase it
Groundwater irrigation – resulting in cultivation of water-intensive crops
Excessive use of fertilizers, insecticides, pesticides
Fertiliser use has increased 25 times since 1960, while food production has only increased 3 times
Behavioural constraints: There are farmers in who have been producing rice for three decades, how do we convince them to make this switch
Lack of land reforms → fragmentation of holding
Traits of ideal cropping pattern –
Should not increase certain diseases –
Crops must be rotated in such a way
Should not exhaust some specific plant nutrients
Should be fertility building and soil improving
Should obtain a good return for cultivator and ensure income all year round.
Should make optimum utilisation of resources like irrigation, water, chemical fertilisers, insecticides, pesticides, etc
Role of Emerging Technologies
Digitization and financial inclusion to ensure Credit availability – This can enable small farmers and self help groups to attempt crop diversification
Crop insurance and timely assessment and compensation through use of technology like drones
e-NAM (Electronic National Agricultural market) for Price realisation and marketing
Changes in farming techniques through better use of technology – Can use techniques like aquaponics and urban farming
Agricultural inputs – Using precision farming (Use of technology to ensure precise use of Inputs like water fertiliser, etc.)
Soil health – Soil health card scheme also uses technology