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Resource centre on India's rural distress
 
 

For farmers today, grass is 'greener' than rice and pulses -Subodh Varma

-The Times of India

Growing grass and selling it in the market may be more profitable than cultivating crops like wheat, rice, pulses or oilseeds.

This bizarre conclusion, a reflection of the desperate conditions of Indian farmers, can be reached if one looks at how the value of various crops has changed over the last five years.

Between 2011-12 and 2015-16, the total value of cereals and pulses produced in the country went down by about 3%, for oilseeds by over 13% and sugars by 1%. But value of grass, which is mainly used as cheap forage for milch animals, increased by about 1%. Output values zoomed up for two types of food items — fruits and vegetables by over 15% and condiments and spices by nearly 18%.

This information is derived from the latest National Accounts Statistics 2017 released by the Central Statistics Office.

It is this declining output value, which is at the root of farmers' sorrow and anger, finding expression in a range of ways from suicides to agitations demanding loan waivers or even job reservations for specific communities.

Output values are declining because the cost of what the farmers put in — seeds, fertilisers, water etc. - is rising faster than the prices they get by selling their produce.

Nearly a third of the total value of agricultural production in India was contributed by cereals and the same by fruits and vegetables, up from about 24% five years ago. Many of the estimates of output value, which is obtained by multiplying total production of a crop by prevailing prices for that crop, are broad guesses, says Vikas Rawal, associate professor of economics at JNU. He especially flagged fruits and vegetables estimates at being sketchy and growth rate seeming to be higher because of starting off from a lower base.

"But, even then, the data does show that most farmers, involved in food grain production, are not getting good returns for their investment and labour," he told TOI. Fruits and vegetables have emerged as a much more attractive investment for farmers because of a mix of several reasons. With nearly half of the cultivated land in India under small and marginal holdings of less than two hectares, it has become increasingly difficult for farmers to manage the longer duration and more demanding crops like cereals, pulses and oilseeds.

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