Source: BS
Context:
A recent RBI Bulletin research article highlights that India’s agricultural debate is shifting from staples (rice, wheat) to high-value crops such as fruits and vegetables. Horticulture is emerging as a key pathway to higher incomes, rural employment, and nutritional security, especially for small and marginal farmers.
Why Horticulture Matters
- India’s Position: World’s second-largest producer of fruits and vegetables (after China).
- Higher Returns: Horticulture provides greater value realisation per hectare compared to cereals.
- Employment: Labour-intensive, supporting rural jobs.
- Changing Diets: Rising demand for fruits and vegetables due to higher incomes, health awareness, and dietary diversification.
Challenges in Diversification
- Productivity Concerns
- Stagnant or declining yields in crops like grapes and sapota (1992–93 to 2021–22).
- Vulnerability to climate variability (e.g., unseasonal rains damaging perishable crops).
- Market Volatility
- Boom-bust cycles of tomatoes, onions, and potatoes harm farmers and consumers alike.
- Weak price discovery and absence of collective bargaining worsen distress sales.
- Post-Harvest Losses
- Annual food wastage and inefficiencies valued at â‚ą1.5 trillion.
- Inadequate cold chains, storage, refrigerated transport, and agro-processing facilities.
- Trade Risks
- Horticultural exports face tariff barriers (e.g., recent US tariffs).
- Limited market diversification exposes India to global policy shocks.
Solutions and Policy Pathways
- Technology and Innovation
- Weather prediction tools, better advisories, and intercropping techniques from global research institutions (CGIAR).
- Public investment in R&D and extension services to boost productivity.
- Market Reforms
- Strengthen Farmer Producer Organisations (FPOs) for aggregation and price negotiation.
- Expand digital platforms for transparent price discovery.
- Encourage fair contract farming for assured pricing.
- Post-Harvest & Supply Chain
- Investment in cold storage, transport, and processing units to cut wastage.
- Adopt World Resources Institute’s Target–Measure–Act framework to reduce food loss.
- Trade & Branding
- Diversify exports to West Asia, Africa, Southeast Asia.
- Build premium value through GI tags (e.g., Alphonso mango, Nagpur orange).
- Upgrade food safety and quality standards to enhance competitiveness.
