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A Lesson from Beed in Raising Farmers’ Incomes

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Source: IE

Context:

At a time when India’s goal of substantially raising farmers’ incomes remains elusive, an experiment from Beed district in Maharashtra offers a practical, scalable pathway to transform rural livelihoods—especially in drought-prone regions.

The Beed Breakthrough
  • Beed district, traditionally marked by low rainfall and agrarian distress, witnessed a dramatic turnaround in farm incomes.
  • The initiative was led by Global Vikas Trust (GVT) under the leadership of Mayank Gandhi.
  • An independent assessment by Tata Institute of Social Sciences (TISS) found that per-acre incomes rose more than 10 times—from about ₹38,700 to nearly ₹3.9 lakh.

What Changed on the Ground?

1. Crop Diversification
  • Farmers shifted from low-return crops like cotton and soybean to high-value horticulture, including:
    • Papaya
    • Pomegranate
    • Sweet lime
    • Custard apple
    • Guava
    • Banana
  • These crops offered better price realisation and year-round income potential.
2. Scientific Farming Practices
  • Adoption of high-density plantations and modern agronomic techniques.
  • Continuous hand-holding and training, rather than one-time advisories.
3. Affordable Quality Inputs
  • Saplings procured in bulk and supplied to farmers at nearly half the market price.
  • Cost support came through CSR funds and philanthropic contributions, lowering entry barriers.
4. Water Security as the Foundation
  • Construction of:
    • Farm ponds
    • Deep recharge shafts
  • Result:
    • Groundwater levels improved sharply—from around 400 feet to nearly 50 feet in many villages.
  • Reliable water made diversification sustainable, not risky.
5. Credit & Risk Mitigation
  • Banks were brought in with credit guarantees, reducing farmers’ fear of debt.
  • Risk was shared across institutions, not borne by farmers alone.
Lessons for National Policy
  • Crop diversification + water security is a powerful income multiplier.
  • Doubling farmers’ income may be too modest a target—with the right support, incomes can grow manifold.
  • Government schemes can amplify impact by aligning:
    • Horticulture missions
    • Watershed development
    • Rural credit and insurance
  • Replicable in other semi-arid and rain-fed regions of India.

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