Introduction:

Diversification of farms is often suggested as a means for rapid rural development in India. Small and marginal holdings account for about three-fourth of the total operational holdings in the country, operating over one-fourth of the total area. Majority of small and marginal farmers cultivate mainly low value, subsistence crops. In the absence of adequate farm and non-farm employment opportunities, they are also forced to live below poverty line.

Body:

Crop diversification is intended to give a wider choice in the production of a variety of crops in a given area so as to expand production related activities on various crops and also to lessen risk. Crop diversification in India is generally viewed as a shift from traditionally grown less remunerative crops to more remunerative crops. Often low volume high-value crops like spices also aid in crop diversification. Higher profitability and also the resilience/stability in production also induce crop diversification, for example sugar cane replacing rice and wheat. Crop substitution and shift are also taking place in the areas with distinct soil problems. For example, the growing of rice in high water table areas replacing oilseeds, pulses and cotton; promotion of soybean in place of sorghum in vertisols (medium and deep black soils) etc

The major problems and constraints in crop diversification are primarily due to the following reasons with varied degrees of influence:

• Over 117 m/ha (63 percent) of the cropped area in the country is completely dependent on rainfall.
• Sub-optimal and over-use of resources like land and water resources, causing a negative impact on the environment and sustainability of agriculture.
• Inadequate supply of seeds and plants of improved cultivars.
• Fragmentation of land holding less favouring modernization and mechanization of agriculture.
• Lack of access to farm and non-farm credit.
• Poor basic infrastructure like rural roads, power, transport, communications etc.
• Inadequate post-harvest technologies and inadequate infrastructure for post-harvest handling of perishable horticultural produce.
• Agricultural pricing policies have barely looked beyond the populism of the minimum support prices (MSP) in the grain sector
• The non-grain sector, on the other hand, is plagued by market inefficiencies and associated price risks. The most recent example being the plight of the dairy farmers, particularly in Maharashtra, who had to suffer price crashes due to supply bottlenecks
• The price competition among these large-scale players for domestic market share has pushed many small farmers out of business.
• 85% of the Indian farmers are bereft of any risk-hedging apparatus
• Very weak agro-based industry and a Weak research – extension – farmer linkages.
• Inadequately trained human resources together with persistent and large scale illiteracy amongst farmers.
• Host of diseases and pests affecting most crop plants.
• Poor database for horticultural crops.
• With the livestock and the ?sheries sectors contributing almost 25% and 6% of the agricultural gross domestic product (GDP) respectively, there is a need for improving their outputs.

Considering the importance of crop diversification in the overall developmental strategy in Indian agriculture, the Government of India has taken several initiatives for agricultural development in general and crop diversification in particular. These initiatives are as follows:

• Launching technology missions for the Integrated Development of Horticulture in the Northeastern Region: The programme will establish effective linkages between research, production, extension, post-harvest management, processing, marketing and exports and bring about a rapid development of agriculture in the region.
• Implementing PMFBY: The scheme will cover food crops and oilseeds and annual commercial and horticulture crops.
• Construction of Mega Food parks in hub and spoke model to strengthen the supply chain from farm to fork.
• Creation of Watershed Development Fund: At the National level for the development of Rainfed lands.
• Infrastructure Support for Horticultural Development with emphasis on Post-harvest Management.
• Strengthening Agricultural Marketing: in the form e-NAM,GRAMs etc.
• declarations of increased outlays for the Rashtriya Gokul Mission and setting up of a Rashtriya Kamdhenu Aayog for cow welfare.

Way forward:

• Innovative institutional mechanisms & structures:
  • Diversification should be augmented through institutional innovations like contract farming, producers’ companies, cooperatives and modern retail formats that engage a larger gamut of stakeholders.
  • In India, farmer producer organisations (FPOs) are witnessing impressive success stories and many small holder farmers have benefited from the model.
  • It is the FPO structure that has united small producers and given them the capacity to enhance their livelihoods through aggregation, development of market linkages and value-addition, thus helping them reap benefits of diversification.
  • The state of Karnataka has also initiated several programs that directly and indirectly support crop diversification in the state. Some of them include: (i) Launching of a program for promoting Farm Producers Organizations in horticulture sector (ii) Weather-based crop insurance for horticulture crops (iii) Promotion of protected cultivation of high value vegetables (iv) Establishment of IFAB (International Flower Auction Bangalore) for promotion of production of flower crops (v) Promotion of green house cultivation of vegetables etc have lead to diversification of farming.
  • SHGs can play a key role in introducing and implementing various activities such as: Livestock farming, Vermicomposting, Flour mill/stores, Introducing new crops.
• Policy interventions:
  • This is the core requirement for building upon the strengths of diversified agriculture, which India has already attained to quite an extent.
  • Government support in identifying commodity-specific clusters, developing basic infrastructure and processing infrastructure, and encouraging entrepreneurial skills, shall go a long way in providing sustainable livelihood.
  • Goods and services tax (GST) application needs to be uniform, easy to administer and incentivise processing over fresh produce. Also, farmers may be nudged to shift to a less water-intensive crop so as to reduce dependence on rain.
• Technology and innovations:
  • The scope of diversification should expand to the wider dimension of value addition – collaborative researches in technology are required to produce process-able grades of commodities.
  • Specific clusters need to be identified to produce such grades at a large scale. This shall not only have a far-reaching effect but also help the nation to curb imports of processed food.
  • Localisation is the key to achieving prolific results of diversification.
  • Product innovations that use local resources are best suited to adapt to any kind of agri practice and its value addition.
  • Innovative use of ICT in the Indian context, to communicate weather-based information, new technologies available, extension services and market price alerts, is key to determining risk mitigation.
• Infrastructure development:
  • Inadequate and skewed distribution of infrastructure such as road, power, market, pre- & post-harvest handling, and irrigation, are all major impediments for diversification.
  • Access to basic infrastructure shall boost entrepreneurial capacities of farmers to take up non-conventional activities and enhance their income.
• Skill development:
  • India has witnessed several initiatives in the past focusing on the agriculture domain.
  • However, with nearly stagnant agriculture growth, there is a clear need for a shift in the perspective of skill development, with a focus on sustainable rural livelihoods.
  • We need to look beyond the farm cycle and engage manpower in value-added activities like processing, trade dynamics and building efficient marketing channels.
  • This shall generate ‘on farm’ as well as ‘off farm’ livelihood options.
• Sustainable risk management:
  • The inefficient subsidy structures on the input and output sides of the value chain have been curtailing growth, ineffectively reaching beneficiaries and promoting unsustainable farm practices, thus disincentivising diversification and adding to the twin deficits challenge.
  • These challenges need to be overcome through a prudent policy intervention. Further, the entire paradigm of risk management for farmers through warehouse receipt financing, crop and weather insurance as well as efficient price discovery/marketing infrastructure, needs to be brought into the mainstream, and the entire policy of price support needs to be done away with.

Conclusion:

Diversification has surely made its mark in select States, though value addition is still in its infancy. Further, many States are still outside the purview of mainstream diversification. The way forward to develop sustainable livelihood for the Indian farmer needs to be addressed through a collaborative approach between the Government and industry, for establishing a much larger and significantly more efficient supply chain for value-added produce, which in turn shall generate sustainable livelihood opportunities.