Small farmers must shift to high-value agriculture like fruits, dairy, buffalo meat: Economic Survey 2023-24

The Economic Survey 2023-24 stressed that the performance of agriculture sector remains “critical” for India’s economic growth which has been increasing at an average growth rate of 4.18 per cent over the last five years.

The survey told the smallholder farmers’ income cannot be increased by producing rice, wheat, or even millets, pulses and oilseeds.

It further suggested farmers to move to high-value agriculture - fruits and vegetables, fisheries, poultry, dairy and buffalo meat.

“Once the incomes of smallholders increase, they will demand manufactured goods, spurring a manufacturing revolution,” the survey said.

“They need to move to high-value agriculture – That is what happened in China between 1978 and 1984 when the real incomes of farmers doubled in just 6 years. India is well-placed to emulate this,” the survey said.

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As per the document, the growing significance of allied sectors such as animal husbandry, dairying, and fisheries in enhancing farmers’ income suggests that greater emphasis should be placed on tapping into the potential of these activities to boost farmers’ incomes.

The Indian agriculture sector provides livelihood support to about 42.3 per cent of the population and has a share of 18.2 per cent in the country’s GDP at current prices.

The document further said that the agriculture sector has been buoyant, which is evident from the fact that it has registered an average annual growth rate of 4.18 per cent at constant prices over the last five years.

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The also said that promoting crop diversification towards oilseeds, pulses, and horticulture requires addressing critical issues including investment in agri-infrastructure, credit accessibility, and appropriate market institutions.

It said MSP (Minimum Support Price) has incentivised crop diversification and there is evidence that MSP has a positive and statistically significant effect on retail prices of all crops, with a stronger effect for those crops where procurement is substantial, such as paddy and wheat.

“Efforts must be made to encourage production patterns and practices in various geographies that are consistent with their agro-climatic characteristics and natural resources. Research and development and promotion of digital technologies in agriculture, as well as improving the quality of seeds, including promoting organic and natural farming, can play a significant role in the realisation of sustainable agriculture practices that efficiently improve farm income and influence farmer behaviour,” the Economic Survey said.