Doubling farm income requires new thinking – Centrum report

Rising food inflation remains a concern and a drop in government grain purchases in May remains a major concern for farmers, according to a report from Centrum Broking.

The wider concern, however, remains to ignore declining farmers’ incomes and moves to incentivize them to produce more to avoid a situation where India has to import food grains from outside, as reported. saw earlier in 2007 and 2016.

“The FMCG industry only offers strong growth when the poor have more money to spend. When that happens, the demand becomes huge and the business economy only needs any kind of boosters,” Centrum said after discussions with Devinder Sharma, a trained agronomist.

The government has taken various initiatives such as providing fertilizer subsidies, setting minimum support prices (MSP) for crops (reviewed before each season) and E-Nam supply benefits, but farmers in the countries are facing serious distress.

Sharma suggested a few recommendations – putting more emphasis on agricultural mechanization, price guarantees to further increase production, and assured income in the hands of farmers, which in turn could benefit the economy as a whole.

“The country’s supply chain is production driven. There are many startups working in the right spirit to enable farmers to educate and monitor crops. The change in mindset needs to be brought to the secondary side of the supply chain where the market needs to be pushed to be more demand driven,” said Udit Sangwan, co-founder of Agrigator, an agricultural supply chain platform. better visibility into consumer expectations, which will translate into better crop planning on the farmer’s side and, consequently, better yields.”

According to the report, improving the contribution and output of agriculture could become an engine of growth for the Indian economy if the whole ecosystem is redesigned, as traditional systems have played a limited role in doubling farmers’ incomes.

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