2 days Ago
Pune: Farm sector has always been called the backbone of our economy as it provides food and supports a large section of the population. The sector has recorded an impressive growth and has moved away from scarcity at the time of independence to surplus production of agricultural commodities. The food grain production today has crossed 330 million tonnes.
India has now become a leading exporter of many agri commodities. However, agriculture is still considered an enterprise which yields uncertain incomes. This is due to weather-dependent supply and unprofitable market prices on one hand and ever-increasing costs of inputs on the other.
The farmers get adequate incomes from crop production when their cost of production is covered adequately by the prices received. It is commonly observed that in case of bumper crop and greater supply than demand, market prices crash pushing the farmers into distress. However, during crop failure too, when market prices rise, the traders rather than the cultivators may reap the benefits.
Largely monsoon-dependent nature of agriculture in Maharashtra has been dictating yield of especially kharif crops such as cotton, soyabean and pulses and unprofitable market prices have been adversely affecting incomes of marginal farmers. Studies have found a vicious circle of lower incomes, lack of adequate non-farm employment opportunities, increasing burden of debt and reducing capacity to repay the loan taken for agricultural activities. In 2024 the state witnessed agitations by onion and soyabean farmers.
Maharashtra produces round 35% of the total onion and accounts for almost 40% of the export. Exports were banned by govt in Dec 2023 after the domestic prices started rising. However, this led to a rise in supply and a fall in prices.
Finally, the ban was lifted in May 2024 just before the Lok Sabha election. The case of onion highlights how farmers' incomes fluctuate and how their plight depends upon overall supply and demand conditions and the resultant govt policy on exports. Soyabean is another important crop.
The state contributes almost 45% to India's total production. Production in the state increased from around 66 lakh tonnes in 2023-24 to around 73 lakh tonnes in 2024-25. Prices, as a result, plummeted and remained below the MSP of Rs4,892 per quintal.
It can be noted that as per the report of the Commission for Agricultural Costs and Prices (CACP) for the kharif season 2024-25, the estimated cost of production provided by the state was Rs6,039 per quintal and the suggested MSP was Rs6,945 per quintal. It is clear that to increase incomes of the cultivating households, besides boosting productivity and hence production of the crop, efficient marketing of the crop through APMC mandis or through direct market channels is essential. It is also important to strengthen the procurement operations in the state so that households are supported at a time when prices collapse below MSP.
Supporting farmers' collectives for increasing their bargaining position, enhancing irrigation facilities, diversification of cropping pattern and encouraging agri allied activities, promoting exports of agri commodities in potential international markets are some of the other measures which can help in enhancing incomes of distressed farmers in the state. The writer is professor, Gokhale Institute of Politics and Economics, Pune Explore the yearly horoscope 2025 for Aries , Taurus , Gemini , Cancer , Leo , Virgo , Libra , Scorpio , Sagittarius , Capricorn , Aquarius , and Pisces zodiac signs. Spread love this holiday season with these New Year wishes , messages and quotes .
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