SlideShare a Scribd company logo
Pratap S Birthal
National Institute for Agricultural Economics and Policy Research
New Delhi
Concerns?
Enhancing agricultural growth (4%), and
doubling of farmers’ income
 Growth targets remained illusive
 Per capita farmers’ income increased by 34% (2002-03
to 2012-13)
Dominance of smallholders
 67% landholdings are <1.0 ha; average size 0.4ha.
 Higher incidence of poverty
Will they escape poverty ?
Exit agriculture or Diversify towards activities
that generate higher returns to land, and labour
 On-farm income and employment:
 Horticultural crops and animal production: higher and
regular income; labour-intensive; hence, match with the
income requirements and resource endowments of the poor.
 Backward linkages to agricultural input sectors:
 High-value agriculture typically input- and information
intensive. If it increases demand for locally produced inputs,
it may generate employment and income in these sectors.
 Forward linkages:
 High-value agriculture may influence the demand for
labour by traders, processors, etc. in the marketing
chain.
 Demand for HVCs:
 Domestic demand
 1993-94- 2011-12: changes in per capita consumption= fruits
+22%, vegetables +14%; milk +12%, meat, eggs and fish +16%,
and food grains -14%.
 These changes are nearly same for rural and urban consumers;
and more for low-income groups
 Changes in demand by 2030: Vegetables +53%,fruits +59%, milk,
+65%, meat, eggs and fish +75%
 Trade
 2001-2013: global per capita consumption of fruits +24%, vegetables +47%,
milk +14%, meat +13% and fish +17%
 Global trade in fruits +52%, vegetables +57%, milk +45%, meat +64%, eggs
+83% and fish +22%
 India’s exports of fruits, vegetables and meat grew substantially
Diversification in Indian agriculture
Diversification within crop sub-sectorWithin agricultural sector
High-value commodities: 35% in 1982/83 to over 50% in 2012-13
0
10
20
30
40
50
60
70
80
90
100
1980s
1990s
2000s
1980s
1990s
2000s
Share in Gross
cropped area
Share in value of
output
62 57 55
42 40 37
14
13 12.5
7.3 6.2
5.2
10.8
14.2 14
12.4 14.1
12.1
6 8 10
24 28
33
Cereals Pulses Oilseeds
Sugarcane Horticulture
Contribution of diversification to growth
16.5
8.7
21.2
51.5
32.3
39.4
5.2
24.3
7.2
26.3 33.3 31.2
0.5 1.3 1.0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1980s 1990s 2000s
Area Yield Price Diversification Interaction
0
10000
20000
30000
40000
50000
Gross returns Cost of
cultivation
Net returns
C
e
r…
Labour use in HVCs is 2-5 time times more than in cereals
Net returns per ha: Small vs large farms
0
5000
10000
15000
20000
25000
All crops Horticultural crops Other crops
Marginal Small Medium Large
Diversification and smallholders
 Landholding of small farmers is too small to allow
them to divert more land out of staples toward HVCs
at the cost of their household food security.
 Cultivation of HVCs is capital-, and information-
intensive, may restrict them to grow HVCs.
 Most HVCs are perishable and are prone to greater
risks, small farmers are risk averse.
 Marketable surplus of HVCs is too small to be
remuneratively traded in the urban markets due to
high transportation and transaction costs.
Marginal Small Medium Large
% households
growing HVCs 22.2 23.6 21.4 19.2
Fruits 3.6 3.8 4.7 4.9
Vegetables 16.8 17.7 13.4 9.8
Spices 4.0 4.4 6.1 7.1
% area allocated 38.7 24.8 25.5 22.6
Diversification vs household food security
73.86 66.57 59.83
44.91
56.79
6.65
9.64
10.91
14.6
10.24
7.3 6.2 5.7
3.4
5.2
Marginal Small Medium Large All
Cereals Pulses Oilseeds Horticultural crops Fibre Others
Diversification happened displacing less profitable coarse cereals,
and not staple food crops, rice and wheat
Mean MPCE Head-count poverty
Growers of
HVCs
Non
growers
of HVCs
%
differenc
e
Growers
of
HVCs
Non
growers
of HVCs
difference
Marginal 526 455 15.6 24.1 30.2 -6.1
Small 559 511 9.4 16.9 20.3 -3.6
Medium 617 543 13.6 10.9 17.4 -6.5
Large 718 624 15.1 7.2 10.5 -3.5
All 558 488 14.3 19.6 25.4 -5.8
 Livestock sector contributes 30% to AgGDP;
more than combined share of rice and wheat
 Contributes about 37% to agricultural growth
 More equally distributed than land,
smallholders share 53% of land, and 71-92% of
different livestock species
 Livestock sector growth has 1.4 times greater
effect on poverty reduction compared to
crop sector
 By Farm size:
 Compared to that of marginal farmers the per
capita income of large farmers is 3 times, of
medium farmers 2-times and of small farmers
1.5 times more.
 By income class:
 Those in top income class earn 9 times more
compared to those in the lowest income class.
 In the lowest income class three-fourths
households are marginal farmers,
 The distribution of marginal farmers across
income classes= 77% in the lowest; 16% in the
middle and 7% in the top income class.
Income class
Q1(Lowest) Q2(middle Q3(Highest)
Per capita income (Rs) 60678 20639 50478
Net income from crops
(Rs/ha)
25655 45683 79420
% area under HVCs 6.3 8.9 14.6
% owning livestock 47.1 58.3 59.3
% Non-farm business 7.8 16.5 20.7
% wages/salaries 52.1 69.4 73.4
Q1: Their cropping intensity is low. They have lower level of education,
less access to credit and information.
Concluding remarks
Livestock sector needs policy support: 12% of agricultural
expenditure, 5% of agricultural credit, extension support is
missing
Growth in high-value crops has largely come from area
expansion, and not much from yield.
Information system- returns from investment in information are
higher in the diversified systems (17%)
Enhanced access to credit, insurance
Investment in public infrastructure that reduces transportation
and transaction costs and induces the private investment in value
chains
Policies facilitating institutional arrangements like contract
farming, producers’ organizations, and cooperatives that provide
farmers easy access to markets, distribute price risks, and reduce
marketing and transaction costs, include smallholders and
Iea ifpri psb

More Related Content

What's hot

Impact of Covid-19 on Indian Agriculture
Impact of Covid-19 on Indian AgricultureImpact of Covid-19 on Indian Agriculture
Impact of Covid-19 on Indian Agriculture
Anwesha Dey
 
high value agri shashankk dc
high value agri shashankk dchigh value agri shashankk dc
high value agri shashankk dc
Shashankk Jain
 
Agricultural critical issues reviewed
Agricultural critical issues reviewedAgricultural critical issues reviewed
Agricultural critical issues reviewed
AsadMirani
 
Isae aurangabad reddy1
Isae aurangabad reddy1Isae aurangabad reddy1
Isae aurangabad reddy1
A Amarender Reddy
 
Ap Agriculture
Ap AgricultureAp Agriculture
Ap Agriculture
hanmireddy pala
 
IFPRI-TAAS-ICAR- Public Policy for Less Favoured Agricultural States in India...
IFPRI-TAAS-ICAR- Public Policy for Less Favoured Agricultural States in India...IFPRI-TAAS-ICAR- Public Policy for Less Favoured Agricultural States in India...
IFPRI-TAAS-ICAR- Public Policy for Less Favoured Agricultural States in India...
International Food Policy Research Institute- South Asia Office
 
Economic Impact of Agriculture Income Tax on Pakistan by Shehryar Rashid, PSSP
Economic Impact of Agriculture Income Tax on Pakistan by Shehryar Rashid, PSSP  Economic Impact of Agriculture Income Tax on Pakistan by Shehryar Rashid, PSSP
Economic Impact of Agriculture Income Tax on Pakistan by Shehryar Rashid, PSSP
International Food Policy Research Institute
 
Steve Davies - Taxation in Pakistan’s Agriculture
Steve Davies - Taxation in Pakistan’s AgricultureSteve Davies - Taxation in Pakistan’s Agriculture
Rural labour markets in India
Rural labour markets in IndiaRural labour markets in India
Rural labour markets in India
A Amarender Reddy
 
Dimensions of agrarian crisis and underlying policies
Dimensions of agrarian crisis and underlying policiesDimensions of agrarian crisis and underlying policies
Dimensions of agrarian crisis and underlying policiesRamanjaneyulu GV
 
Labour scarcity and farm mechanisation
Labour scarcity and farm mechanisationLabour scarcity and farm mechanisation
Labour scarcity and farm mechanisation
Priyanka Upreti
 
130601 Sustaining small holder agriculture
130601 Sustaining small holder agriculture130601 Sustaining small holder agriculture
130601 Sustaining small holder agriculture
Ramanjaneyulu GV
 
IFPRI -Can India Sustain its Pulses Growth Trajectory- Harnessing Successes a...
IFPRI -Can India Sustain its Pulses Growth Trajectory- Harnessing Successes a...IFPRI -Can India Sustain its Pulses Growth Trajectory- Harnessing Successes a...
IFPRI -Can India Sustain its Pulses Growth Trajectory- Harnessing Successes a...
International Food Policy Research Institute- South Asia Office
 
Agriculture Crisis in India
Agriculture Crisis in IndiaAgriculture Crisis in India
Agriculture Crisis in India
AruliSharma
 
Rural Labour Markets in India
Rural Labour Markets in IndiaRural Labour Markets in India
Rural Labour Markets in India
A Amarender Reddy
 
Agriculture Liveiihood in india
Agriculture Liveiihood in indiaAgriculture Liveiihood in india
Agriculture Liveiihood in india
Kuldeep Ladani
 
Agricultural Pricing Policy of Pakistan
Agricultural Pricing Policy of PakistanAgricultural Pricing Policy of Pakistan
Agricultural Pricing Policy of Pakistan
Ultraspectra
 
Agricultural Development Planning And Resource Mobilization
Agricultural Development Planning And Resource MobilizationAgricultural Development Planning And Resource Mobilization
Agricultural Development Planning And Resource Mobilization
Khawaja Naveed
 
twelfth five year plan-major challanges for agriculture
twelfth five year plan-major challanges for agriculturetwelfth five year plan-major challanges for agriculture
twelfth five year plan-major challanges for agriculture2rishabhkumar
 

What's hot (20)

Impact of Covid-19 on Indian Agriculture
Impact of Covid-19 on Indian AgricultureImpact of Covid-19 on Indian Agriculture
Impact of Covid-19 on Indian Agriculture
 
high value agri shashankk dc
high value agri shashankk dchigh value agri shashankk dc
high value agri shashankk dc
 
Agricultural critical issues reviewed
Agricultural critical issues reviewedAgricultural critical issues reviewed
Agricultural critical issues reviewed
 
Isae aurangabad reddy1
Isae aurangabad reddy1Isae aurangabad reddy1
Isae aurangabad reddy1
 
Ap Agriculture
Ap AgricultureAp Agriculture
Ap Agriculture
 
IFPRI-TAAS-ICAR- Public Policy for Less Favoured Agricultural States in India...
IFPRI-TAAS-ICAR- Public Policy for Less Favoured Agricultural States in India...IFPRI-TAAS-ICAR- Public Policy for Less Favoured Agricultural States in India...
IFPRI-TAAS-ICAR- Public Policy for Less Favoured Agricultural States in India...
 
Economic Impact of Agriculture Income Tax on Pakistan by Shehryar Rashid, PSSP
Economic Impact of Agriculture Income Tax on Pakistan by Shehryar Rashid, PSSP  Economic Impact of Agriculture Income Tax on Pakistan by Shehryar Rashid, PSSP
Economic Impact of Agriculture Income Tax on Pakistan by Shehryar Rashid, PSSP
 
Steve Davies - Taxation in Pakistan’s Agriculture
Steve Davies - Taxation in Pakistan’s AgricultureSteve Davies - Taxation in Pakistan’s Agriculture
Steve Davies - Taxation in Pakistan’s Agriculture
 
Rural labour markets in India
Rural labour markets in IndiaRural labour markets in India
Rural labour markets in India
 
Dimensions of agrarian crisis and underlying policies
Dimensions of agrarian crisis and underlying policiesDimensions of agrarian crisis and underlying policies
Dimensions of agrarian crisis and underlying policies
 
Labour scarcity and farm mechanisation
Labour scarcity and farm mechanisationLabour scarcity and farm mechanisation
Labour scarcity and farm mechanisation
 
130601 Sustaining small holder agriculture
130601 Sustaining small holder agriculture130601 Sustaining small holder agriculture
130601 Sustaining small holder agriculture
 
IFPRI -Can India Sustain its Pulses Growth Trajectory- Harnessing Successes a...
IFPRI -Can India Sustain its Pulses Growth Trajectory- Harnessing Successes a...IFPRI -Can India Sustain its Pulses Growth Trajectory- Harnessing Successes a...
IFPRI -Can India Sustain its Pulses Growth Trajectory- Harnessing Successes a...
 
elexians
elexianselexians
elexians
 
Agriculture Crisis in India
Agriculture Crisis in IndiaAgriculture Crisis in India
Agriculture Crisis in India
 
Rural Labour Markets in India
Rural Labour Markets in IndiaRural Labour Markets in India
Rural Labour Markets in India
 
Agriculture Liveiihood in india
Agriculture Liveiihood in indiaAgriculture Liveiihood in india
Agriculture Liveiihood in india
 
Agricultural Pricing Policy of Pakistan
Agricultural Pricing Policy of PakistanAgricultural Pricing Policy of Pakistan
Agricultural Pricing Policy of Pakistan
 
Agricultural Development Planning And Resource Mobilization
Agricultural Development Planning And Resource MobilizationAgricultural Development Planning And Resource Mobilization
Agricultural Development Planning And Resource Mobilization
 
twelfth five year plan-major challanges for agriculture
twelfth five year plan-major challanges for agriculturetwelfth five year plan-major challanges for agriculture
twelfth five year plan-major challanges for agriculture
 

Similar to Iea ifpri psb

How to revive agriculture business in India.ppt
How to revive agriculture business in India.pptHow to revive agriculture business in India.ppt
How to revive agriculture business in India.ppt
SourabhKalolikar
 
Jobs and Ethiopia’s agri-food system: Reviewing the evidence
Jobs and Ethiopia’s agri-food system: Reviewing the evidenceJobs and Ethiopia’s agri-food system: Reviewing the evidence
Jobs and Ethiopia’s agri-food system: Reviewing the evidence
essp2
 
Agriculture and Poverty in Afghanistan
Agriculture and Poverty in AfghanistanAgriculture and Poverty in Afghanistan
Agriculture and Poverty in Afghanistan
موحد مسعود
 
High value agriculture and market linkages in India
High value agriculture and market linkages in IndiaHigh value agriculture and market linkages in India
High value agriculture and market linkages in India
International Food Policy Research Institute
 
Doubling Farmers’ Income through animal agriculture: Need for policy change
Doubling Farmers’ Income through animal agriculture: Need for policy changeDoubling Farmers’ Income through animal agriculture: Need for policy change
Doubling Farmers’ Income through animal agriculture: Need for policy change
ILRI
 
SEMINAR PPT LEENANI (2).pptx
SEMINAR PPT LEENANI (2).pptxSEMINAR PPT LEENANI (2).pptx
SEMINAR PPT LEENANI (2).pptx
ABHISHEKj28
 
Agrarian distress in india
Agrarian distress in indiaAgrarian distress in india
Agrarian distress in india
Dr. Murali Prasad, M R
 
Indian Agriculture - 2016
Indian Agriculture - 2016Indian Agriculture - 2016
Indian Agriculture - 2016
Anunay Sinha
 
Smallholders in africa
Smallholders in africaSmallholders in africa
Smallholders in africa
Wageningen University & Research
 
India should focus on agriculture
India should focus on agricultureIndia should focus on agriculture
India should focus on agricultureArpit Agarwal
 
Agrarian Change & Rural Development
Agrarian Change & Rural Development Agrarian Change & Rural Development
Agrarian Change & Rural Development
Wageningen University & Research
 
Agriculture Lecture 2 notes.pptx
Agriculture Lecture 2 notes.pptxAgriculture Lecture 2 notes.pptx
Agriculture Lecture 2 notes.pptx
NamanyaBetrum1
 
Green revolution- good and bad effects in India: a review with facts and figu...
Green revolution- good and bad effects in India: a review with facts and figu...Green revolution- good and bad effects in India: a review with facts and figu...
Green revolution- good and bad effects in India: a review with facts and figu...
Indira Gandhi Krishi Vishwavidyalaya, Raipur, Chhattisgarh
 
Smallholder Commercialization, Performance and Household Demographic Cycle:
Smallholder Commercialization, Performance and Household Demographic Cycle: Smallholder Commercialization, Performance and Household Demographic Cycle:
Smallholder Commercialization, Performance and Household Demographic Cycle: futureagricultures
 
IFPRI South Asia - lagging states-india, P K Joshi
IFPRI South Asia - lagging states-india, P K JoshiIFPRI South Asia - lagging states-india, P K Joshi
IFPRI South Asia - lagging states-india, P K Joshi
International Food Policy Research Institute- South Asia Office
 
Opportunities for agricultural growth and transformation in PNG
Opportunities for agricultural growth and transformation in PNGOpportunities for agricultural growth and transformation in PNG
Opportunities for agricultural growth and transformation in PNG
International Food Policy Research Institute (IFPRI)
 
IFPRI - P K Joshi - Has Indian Agriculture Become Crowded and Risky? Status,...
IFPRI - P K Joshi - Has Indian Agriculture Become Crowded and Risky? Status,...IFPRI - P K Joshi - Has Indian Agriculture Become Crowded and Risky? Status,...
IFPRI - P K Joshi - Has Indian Agriculture Become Crowded and Risky? Status,...
International Food Policy Research Institute- South Asia Office
 
JOBS AND ETHIOPIA’S AGRI-FOOD SYSTEM
JOBS AND ETHIOPIA’S AGRI-FOOD SYSTEMJOBS AND ETHIOPIA’S AGRI-FOOD SYSTEM
JOBS AND ETHIOPIA’S AGRI-FOOD SYSTEM
essp2
 
Indian Agrarian Crisis and way forward AID conference
Indian Agrarian Crisis and way forward AID conferenceIndian Agrarian Crisis and way forward AID conference
Indian Agrarian Crisis and way forward AID conferenceRamanjaneyulu GV
 
Challenges and opportunities in rainfed agriculture_Final Editing-21.12.2022....
Challenges and opportunities in rainfed agriculture_Final Editing-21.12.2022....Challenges and opportunities in rainfed agriculture_Final Editing-21.12.2022....
Challenges and opportunities in rainfed agriculture_Final Editing-21.12.2022....
Shekhar Gendle
 

Similar to Iea ifpri psb (20)

How to revive agriculture business in India.ppt
How to revive agriculture business in India.pptHow to revive agriculture business in India.ppt
How to revive agriculture business in India.ppt
 
Jobs and Ethiopia’s agri-food system: Reviewing the evidence
Jobs and Ethiopia’s agri-food system: Reviewing the evidenceJobs and Ethiopia’s agri-food system: Reviewing the evidence
Jobs and Ethiopia’s agri-food system: Reviewing the evidence
 
Agriculture and Poverty in Afghanistan
Agriculture and Poverty in AfghanistanAgriculture and Poverty in Afghanistan
Agriculture and Poverty in Afghanistan
 
High value agriculture and market linkages in India
High value agriculture and market linkages in IndiaHigh value agriculture and market linkages in India
High value agriculture and market linkages in India
 
Doubling Farmers’ Income through animal agriculture: Need for policy change
Doubling Farmers’ Income through animal agriculture: Need for policy changeDoubling Farmers’ Income through animal agriculture: Need for policy change
Doubling Farmers’ Income through animal agriculture: Need for policy change
 
SEMINAR PPT LEENANI (2).pptx
SEMINAR PPT LEENANI (2).pptxSEMINAR PPT LEENANI (2).pptx
SEMINAR PPT LEENANI (2).pptx
 
Agrarian distress in india
Agrarian distress in indiaAgrarian distress in india
Agrarian distress in india
 
Indian Agriculture - 2016
Indian Agriculture - 2016Indian Agriculture - 2016
Indian Agriculture - 2016
 
Smallholders in africa
Smallholders in africaSmallholders in africa
Smallholders in africa
 
India should focus on agriculture
India should focus on agricultureIndia should focus on agriculture
India should focus on agriculture
 
Agrarian Change & Rural Development
Agrarian Change & Rural Development Agrarian Change & Rural Development
Agrarian Change & Rural Development
 
Agriculture Lecture 2 notes.pptx
Agriculture Lecture 2 notes.pptxAgriculture Lecture 2 notes.pptx
Agriculture Lecture 2 notes.pptx
 
Green revolution- good and bad effects in India: a review with facts and figu...
Green revolution- good and bad effects in India: a review with facts and figu...Green revolution- good and bad effects in India: a review with facts and figu...
Green revolution- good and bad effects in India: a review with facts and figu...
 
Smallholder Commercialization, Performance and Household Demographic Cycle:
Smallholder Commercialization, Performance and Household Demographic Cycle: Smallholder Commercialization, Performance and Household Demographic Cycle:
Smallholder Commercialization, Performance and Household Demographic Cycle:
 
IFPRI South Asia - lagging states-india, P K Joshi
IFPRI South Asia - lagging states-india, P K JoshiIFPRI South Asia - lagging states-india, P K Joshi
IFPRI South Asia - lagging states-india, P K Joshi
 
Opportunities for agricultural growth and transformation in PNG
Opportunities for agricultural growth and transformation in PNGOpportunities for agricultural growth and transformation in PNG
Opportunities for agricultural growth and transformation in PNG
 
IFPRI - P K Joshi - Has Indian Agriculture Become Crowded and Risky? Status,...
IFPRI - P K Joshi - Has Indian Agriculture Become Crowded and Risky? Status,...IFPRI - P K Joshi - Has Indian Agriculture Become Crowded and Risky? Status,...
IFPRI - P K Joshi - Has Indian Agriculture Become Crowded and Risky? Status,...
 
JOBS AND ETHIOPIA’S AGRI-FOOD SYSTEM
JOBS AND ETHIOPIA’S AGRI-FOOD SYSTEMJOBS AND ETHIOPIA’S AGRI-FOOD SYSTEM
JOBS AND ETHIOPIA’S AGRI-FOOD SYSTEM
 
Indian Agrarian Crisis and way forward AID conference
Indian Agrarian Crisis and way forward AID conferenceIndian Agrarian Crisis and way forward AID conference
Indian Agrarian Crisis and way forward AID conference
 
Challenges and opportunities in rainfed agriculture_Final Editing-21.12.2022....
Challenges and opportunities in rainfed agriculture_Final Editing-21.12.2022....Challenges and opportunities in rainfed agriculture_Final Editing-21.12.2022....
Challenges and opportunities in rainfed agriculture_Final Editing-21.12.2022....
 

More from Jaspreet Aulakh

61 iea conference_credit_2016
61 iea conference_credit_201661 iea conference_credit_2016
61 iea conference_credit_2016
Jaspreet Aulakh
 
Extensive and intensive margins of india’s pulses trade
Extensive and intensive margins of india’s pulses tradeExtensive and intensive margins of india’s pulses trade
Extensive and intensive margins of india’s pulses trade
Jaspreet Aulakh
 
Cooling effect of pulse imports on domestic prices
Cooling effect of pulse imports on domestic pricesCooling effect of pulse imports on domestic prices
Cooling effect of pulse imports on domestic prices
Jaspreet Aulakh
 
Price transmission in pulse to split (dal) value chain in delhi, india
Price transmission in pulse to split (dal) value chain in delhi, indiaPrice transmission in pulse to split (dal) value chain in delhi, india
Price transmission in pulse to split (dal) value chain in delhi, india
Jaspreet Aulakh
 
Ppt for vc sir climate change dr. ashok patel
Ppt for vc sir  climate change dr. ashok patelPpt for vc sir  climate change dr. ashok patel
Ppt for vc sir climate change dr. ashok patel
Jaspreet Aulakh
 
Department of Agriculture, Rajasthan
Department of Agriculture, Rajasthan Department of Agriculture, Rajasthan
Department of Agriculture, Rajasthan
Jaspreet Aulakh
 
Jal manthan 16 april 2016
Jal manthan  16 april 2016Jal manthan  16 april 2016
Jal manthan 16 april 2016
Jaspreet Aulakh
 
Jaipur 20-8-2015
Jaipur  20-8-2015Jaipur  20-8-2015
Jaipur 20-8-2015
Jaspreet Aulakh
 
Horticulture &amp; water management by dr r. a. sherasiya dt 04 05-2016
Horticulture &amp; water management by dr r. a. sherasiya dt 04 05-2016Horticulture &amp; water management by dr r. a. sherasiya dt 04 05-2016
Horticulture &amp; water management by dr r. a. sherasiya dt 04 05-2016
Jaspreet Aulakh
 
Gujarat drip irrigation approach ggrc - r.k.sugoor
Gujarat drip irrigation approach   ggrc - r.k.sugoorGujarat drip irrigation approach   ggrc - r.k.sugoor
Gujarat drip irrigation approach ggrc - r.k.sugoor
Jaspreet Aulakh
 
Food final presentation 07.05.2016
Food final presentation 07.05.2016Food final presentation 07.05.2016
Food final presentation 07.05.2016
Jaspreet Aulakh
 
Dr shelat conference climate change and groundwater
Dr shelat conference climate change and groundwaterDr shelat conference climate change and groundwater
Dr shelat conference climate change and groundwater
Jaspreet Aulakh
 
Farm mechanization (12.05.2016)
Farm mechanization (12.05.2016)Farm mechanization (12.05.2016)
Farm mechanization (12.05.2016)
Jaspreet Aulakh
 
Mechanization workshop held at patna (12.05.2016)
Mechanization workshop held at patna (12.05.2016)Mechanization workshop held at patna (12.05.2016)
Mechanization workshop held at patna (12.05.2016)
Jaspreet Aulakh
 
Agriculture mechanisation 12 may 2016
Agriculture mechanisation   12 may 2016Agriculture mechanisation   12 may 2016
Agriculture mechanisation 12 may 2016
Jaspreet Aulakh
 
Zamindara
ZamindaraZamindara
Zamindara
Jaspreet Aulakh
 
Models of rental market of am m bhattarai-f
Models of rental market of am m bhattarai-fModels of rental market of am m bhattarai-f
Models of rental market of am m bhattarai-f
Jaspreet Aulakh
 
Gajendra singh patna agricultural mechanization in india and future prospects
Gajendra singh patna agricultural mechanization in india and future prospectsGajendra singh patna agricultural mechanization in india and future prospects
Gajendra singh patna agricultural mechanization in india and future prospects
Jaspreet Aulakh
 
D.k singh
D.k singhD.k singh
D.k singh
Jaspreet Aulakh
 
Dr. indra mani mechanization bihar 10.05.2016
Dr. indra mani mechanization bihar 10.05.2016Dr. indra mani mechanization bihar 10.05.2016
Dr. indra mani mechanization bihar 10.05.2016
Jaspreet Aulakh
 

More from Jaspreet Aulakh (20)

61 iea conference_credit_2016
61 iea conference_credit_201661 iea conference_credit_2016
61 iea conference_credit_2016
 
Extensive and intensive margins of india’s pulses trade
Extensive and intensive margins of india’s pulses tradeExtensive and intensive margins of india’s pulses trade
Extensive and intensive margins of india’s pulses trade
 
Cooling effect of pulse imports on domestic prices
Cooling effect of pulse imports on domestic pricesCooling effect of pulse imports on domestic prices
Cooling effect of pulse imports on domestic prices
 
Price transmission in pulse to split (dal) value chain in delhi, india
Price transmission in pulse to split (dal) value chain in delhi, indiaPrice transmission in pulse to split (dal) value chain in delhi, india
Price transmission in pulse to split (dal) value chain in delhi, india
 
Ppt for vc sir climate change dr. ashok patel
Ppt for vc sir  climate change dr. ashok patelPpt for vc sir  climate change dr. ashok patel
Ppt for vc sir climate change dr. ashok patel
 
Department of Agriculture, Rajasthan
Department of Agriculture, Rajasthan Department of Agriculture, Rajasthan
Department of Agriculture, Rajasthan
 
Jal manthan 16 april 2016
Jal manthan  16 april 2016Jal manthan  16 april 2016
Jal manthan 16 april 2016
 
Jaipur 20-8-2015
Jaipur  20-8-2015Jaipur  20-8-2015
Jaipur 20-8-2015
 
Horticulture &amp; water management by dr r. a. sherasiya dt 04 05-2016
Horticulture &amp; water management by dr r. a. sherasiya dt 04 05-2016Horticulture &amp; water management by dr r. a. sherasiya dt 04 05-2016
Horticulture &amp; water management by dr r. a. sherasiya dt 04 05-2016
 
Gujarat drip irrigation approach ggrc - r.k.sugoor
Gujarat drip irrigation approach   ggrc - r.k.sugoorGujarat drip irrigation approach   ggrc - r.k.sugoor
Gujarat drip irrigation approach ggrc - r.k.sugoor
 
Food final presentation 07.05.2016
Food final presentation 07.05.2016Food final presentation 07.05.2016
Food final presentation 07.05.2016
 
Dr shelat conference climate change and groundwater
Dr shelat conference climate change and groundwaterDr shelat conference climate change and groundwater
Dr shelat conference climate change and groundwater
 
Farm mechanization (12.05.2016)
Farm mechanization (12.05.2016)Farm mechanization (12.05.2016)
Farm mechanization (12.05.2016)
 
Mechanization workshop held at patna (12.05.2016)
Mechanization workshop held at patna (12.05.2016)Mechanization workshop held at patna (12.05.2016)
Mechanization workshop held at patna (12.05.2016)
 
Agriculture mechanisation 12 may 2016
Agriculture mechanisation   12 may 2016Agriculture mechanisation   12 may 2016
Agriculture mechanisation 12 may 2016
 
Zamindara
ZamindaraZamindara
Zamindara
 
Models of rental market of am m bhattarai-f
Models of rental market of am m bhattarai-fModels of rental market of am m bhattarai-f
Models of rental market of am m bhattarai-f
 
Gajendra singh patna agricultural mechanization in india and future prospects
Gajendra singh patna agricultural mechanization in india and future prospectsGajendra singh patna agricultural mechanization in india and future prospects
Gajendra singh patna agricultural mechanization in india and future prospects
 
D.k singh
D.k singhD.k singh
D.k singh
 
Dr. indra mani mechanization bihar 10.05.2016
Dr. indra mani mechanization bihar 10.05.2016Dr. indra mani mechanization bihar 10.05.2016
Dr. indra mani mechanization bihar 10.05.2016
 

Recently uploaded

Sustainable farming practices in India .pptx
Sustainable farming  practices in India .pptxSustainable farming  practices in India .pptx
Sustainable farming practices in India .pptx
chaitaliambole
 
Celebrating World-environment-day-2024.pdf
Celebrating  World-environment-day-2024.pdfCelebrating  World-environment-day-2024.pdf
Celebrating World-environment-day-2024.pdf
rohankumarsinghrore1
 
一比一原版(UMTC毕业证书)明尼苏达大学双城分校毕业证如何办理
一比一原版(UMTC毕业证书)明尼苏达大学双城分校毕业证如何办理一比一原版(UMTC毕业证书)明尼苏达大学双城分校毕业证如何办理
一比一原版(UMTC毕业证书)明尼苏达大学双城分校毕业证如何办理
zm9ajxup
 
Environmental Science Book By Dr. Y.K. Singh
Environmental Science Book By Dr. Y.K. SinghEnvironmental Science Book By Dr. Y.K. Singh
Environmental Science Book By Dr. Y.K. Singh
AhmadKhan917612
 
Characterization and the Kinetics of drying at the drying oven and with micro...
Characterization and the Kinetics of drying at the drying oven and with micro...Characterization and the Kinetics of drying at the drying oven and with micro...
Characterization and the Kinetics of drying at the drying oven and with micro...
Open Access Research Paper
 
International+e-Commerce+Platform-www.cfye-commerce.shop
International+e-Commerce+Platform-www.cfye-commerce.shopInternational+e-Commerce+Platform-www.cfye-commerce.shop
International+e-Commerce+Platform-www.cfye-commerce.shop
laozhuseo02
 
Willie Nelson Net Worth: A Journey Through Music, Movies, and Business Ventures
Willie Nelson Net Worth: A Journey Through Music, Movies, and Business VenturesWillie Nelson Net Worth: A Journey Through Music, Movies, and Business Ventures
Willie Nelson Net Worth: A Journey Through Music, Movies, and Business Ventures
greendigital
 
Natural farming @ Dr. Siddhartha S. Jena.pptx
Natural farming @ Dr. Siddhartha S. Jena.pptxNatural farming @ Dr. Siddhartha S. Jena.pptx
Natural farming @ Dr. Siddhartha S. Jena.pptx
sidjena70
 
Sustainable Rain water harvesting in india.ppt
Sustainable Rain water harvesting in india.pptSustainable Rain water harvesting in india.ppt
Sustainable Rain water harvesting in india.ppt
chaitaliambole
 
Navigating the complex landscape of AI governance
Navigating the complex landscape of AI governanceNavigating the complex landscape of AI governance
Navigating the complex landscape of AI governance
Piermenotti Mauro
 
Artificial Reefs by Kuddle Life Foundation - May 2024
Artificial Reefs by Kuddle Life Foundation - May 2024Artificial Reefs by Kuddle Life Foundation - May 2024
Artificial Reefs by Kuddle Life Foundation - May 2024
punit537210
 
DRAFT NRW Recreation Strategy - People and Nature thriving together
DRAFT NRW Recreation Strategy - People and Nature thriving togetherDRAFT NRW Recreation Strategy - People and Nature thriving together
DRAFT NRW Recreation Strategy - People and Nature thriving together
Robin Grant
 
Daan Park Hydrangea flower season I like it
Daan Park Hydrangea flower season I like itDaan Park Hydrangea flower season I like it
Daan Park Hydrangea flower season I like it
a0966109726
 
NRW Board Paper - DRAFT NRW Recreation Strategy
NRW Board Paper - DRAFT NRW Recreation StrategyNRW Board Paper - DRAFT NRW Recreation Strategy
NRW Board Paper - DRAFT NRW Recreation Strategy
Robin Grant
 
alhambra case study Islamic gardens part-2.pptx
alhambra case study Islamic gardens part-2.pptxalhambra case study Islamic gardens part-2.pptx
alhambra case study Islamic gardens part-2.pptx
CECOS University Peshawar, Pakistan
 
How about Huawei mobile phone-www.cfye-commerce.shop
How about Huawei mobile phone-www.cfye-commerce.shopHow about Huawei mobile phone-www.cfye-commerce.shop
How about Huawei mobile phone-www.cfye-commerce.shop
laozhuseo02
 
Q&A with the Experts: The Food Service Playbook
Q&A with the Experts: The Food Service PlaybookQ&A with the Experts: The Food Service Playbook
Q&A with the Experts: The Food Service Playbook
World Resources Institute (WRI)
 
ppt on beauty of the nature by Palak.pptx
ppt on  beauty of the nature by Palak.pptxppt on  beauty of the nature by Palak.pptx
ppt on beauty of the nature by Palak.pptx
RaniJaiswal16
 
Alert-driven Community-based Forest monitoring: A case of the Peruvian Amazon
Alert-driven Community-based Forest monitoring: A case of the Peruvian AmazonAlert-driven Community-based Forest monitoring: A case of the Peruvian Amazon
Alert-driven Community-based Forest monitoring: A case of the Peruvian Amazon
CIFOR-ICRAF
 
Presentación Giulio Quaggiotto-Diálogo improbable .pptx.pdf
Presentación Giulio Quaggiotto-Diálogo improbable .pptx.pdfPresentación Giulio Quaggiotto-Diálogo improbable .pptx.pdf
Presentación Giulio Quaggiotto-Diálogo improbable .pptx.pdf
Innovation and Technology for Development Centre
 

Recently uploaded (20)

Sustainable farming practices in India .pptx
Sustainable farming  practices in India .pptxSustainable farming  practices in India .pptx
Sustainable farming practices in India .pptx
 
Celebrating World-environment-day-2024.pdf
Celebrating  World-environment-day-2024.pdfCelebrating  World-environment-day-2024.pdf
Celebrating World-environment-day-2024.pdf
 
一比一原版(UMTC毕业证书)明尼苏达大学双城分校毕业证如何办理
一比一原版(UMTC毕业证书)明尼苏达大学双城分校毕业证如何办理一比一原版(UMTC毕业证书)明尼苏达大学双城分校毕业证如何办理
一比一原版(UMTC毕业证书)明尼苏达大学双城分校毕业证如何办理
 
Environmental Science Book By Dr. Y.K. Singh
Environmental Science Book By Dr. Y.K. SinghEnvironmental Science Book By Dr. Y.K. Singh
Environmental Science Book By Dr. Y.K. Singh
 
Characterization and the Kinetics of drying at the drying oven and with micro...
Characterization and the Kinetics of drying at the drying oven and with micro...Characterization and the Kinetics of drying at the drying oven and with micro...
Characterization and the Kinetics of drying at the drying oven and with micro...
 
International+e-Commerce+Platform-www.cfye-commerce.shop
International+e-Commerce+Platform-www.cfye-commerce.shopInternational+e-Commerce+Platform-www.cfye-commerce.shop
International+e-Commerce+Platform-www.cfye-commerce.shop
 
Willie Nelson Net Worth: A Journey Through Music, Movies, and Business Ventures
Willie Nelson Net Worth: A Journey Through Music, Movies, and Business VenturesWillie Nelson Net Worth: A Journey Through Music, Movies, and Business Ventures
Willie Nelson Net Worth: A Journey Through Music, Movies, and Business Ventures
 
Natural farming @ Dr. Siddhartha S. Jena.pptx
Natural farming @ Dr. Siddhartha S. Jena.pptxNatural farming @ Dr. Siddhartha S. Jena.pptx
Natural farming @ Dr. Siddhartha S. Jena.pptx
 
Sustainable Rain water harvesting in india.ppt
Sustainable Rain water harvesting in india.pptSustainable Rain water harvesting in india.ppt
Sustainable Rain water harvesting in india.ppt
 
Navigating the complex landscape of AI governance
Navigating the complex landscape of AI governanceNavigating the complex landscape of AI governance
Navigating the complex landscape of AI governance
 
Artificial Reefs by Kuddle Life Foundation - May 2024
Artificial Reefs by Kuddle Life Foundation - May 2024Artificial Reefs by Kuddle Life Foundation - May 2024
Artificial Reefs by Kuddle Life Foundation - May 2024
 
DRAFT NRW Recreation Strategy - People and Nature thriving together
DRAFT NRW Recreation Strategy - People and Nature thriving togetherDRAFT NRW Recreation Strategy - People and Nature thriving together
DRAFT NRW Recreation Strategy - People and Nature thriving together
 
Daan Park Hydrangea flower season I like it
Daan Park Hydrangea flower season I like itDaan Park Hydrangea flower season I like it
Daan Park Hydrangea flower season I like it
 
NRW Board Paper - DRAFT NRW Recreation Strategy
NRW Board Paper - DRAFT NRW Recreation StrategyNRW Board Paper - DRAFT NRW Recreation Strategy
NRW Board Paper - DRAFT NRW Recreation Strategy
 
alhambra case study Islamic gardens part-2.pptx
alhambra case study Islamic gardens part-2.pptxalhambra case study Islamic gardens part-2.pptx
alhambra case study Islamic gardens part-2.pptx
 
How about Huawei mobile phone-www.cfye-commerce.shop
How about Huawei mobile phone-www.cfye-commerce.shopHow about Huawei mobile phone-www.cfye-commerce.shop
How about Huawei mobile phone-www.cfye-commerce.shop
 
Q&A with the Experts: The Food Service Playbook
Q&A with the Experts: The Food Service PlaybookQ&A with the Experts: The Food Service Playbook
Q&A with the Experts: The Food Service Playbook
 
ppt on beauty of the nature by Palak.pptx
ppt on  beauty of the nature by Palak.pptxppt on  beauty of the nature by Palak.pptx
ppt on beauty of the nature by Palak.pptx
 
Alert-driven Community-based Forest monitoring: A case of the Peruvian Amazon
Alert-driven Community-based Forest monitoring: A case of the Peruvian AmazonAlert-driven Community-based Forest monitoring: A case of the Peruvian Amazon
Alert-driven Community-based Forest monitoring: A case of the Peruvian Amazon
 
Presentación Giulio Quaggiotto-Diálogo improbable .pptx.pdf
Presentación Giulio Quaggiotto-Diálogo improbable .pptx.pdfPresentación Giulio Quaggiotto-Diálogo improbable .pptx.pdf
Presentación Giulio Quaggiotto-Diálogo improbable .pptx.pdf
 

Iea ifpri psb

  • 1. Pratap S Birthal National Institute for Agricultural Economics and Policy Research New Delhi
  • 2. Concerns? Enhancing agricultural growth (4%), and doubling of farmers’ income  Growth targets remained illusive  Per capita farmers’ income increased by 34% (2002-03 to 2012-13) Dominance of smallholders  67% landholdings are <1.0 ha; average size 0.4ha.  Higher incidence of poverty Will they escape poverty ? Exit agriculture or Diversify towards activities that generate higher returns to land, and labour
  • 3.  On-farm income and employment:  Horticultural crops and animal production: higher and regular income; labour-intensive; hence, match with the income requirements and resource endowments of the poor.  Backward linkages to agricultural input sectors:  High-value agriculture typically input- and information intensive. If it increases demand for locally produced inputs, it may generate employment and income in these sectors.  Forward linkages:  High-value agriculture may influence the demand for labour by traders, processors, etc. in the marketing chain.  Demand for HVCs:
  • 4.  Domestic demand  1993-94- 2011-12: changes in per capita consumption= fruits +22%, vegetables +14%; milk +12%, meat, eggs and fish +16%, and food grains -14%.  These changes are nearly same for rural and urban consumers; and more for low-income groups  Changes in demand by 2030: Vegetables +53%,fruits +59%, milk, +65%, meat, eggs and fish +75%  Trade  2001-2013: global per capita consumption of fruits +24%, vegetables +47%, milk +14%, meat +13% and fish +17%  Global trade in fruits +52%, vegetables +57%, milk +45%, meat +64%, eggs +83% and fish +22%  India’s exports of fruits, vegetables and meat grew substantially
  • 5. Diversification in Indian agriculture Diversification within crop sub-sectorWithin agricultural sector High-value commodities: 35% in 1982/83 to over 50% in 2012-13 0 10 20 30 40 50 60 70 80 90 100 1980s 1990s 2000s 1980s 1990s 2000s Share in Gross cropped area Share in value of output 62 57 55 42 40 37 14 13 12.5 7.3 6.2 5.2 10.8 14.2 14 12.4 14.1 12.1 6 8 10 24 28 33 Cereals Pulses Oilseeds Sugarcane Horticulture
  • 6. Contribution of diversification to growth 16.5 8.7 21.2 51.5 32.3 39.4 5.2 24.3 7.2 26.3 33.3 31.2 0.5 1.3 1.0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1980s 1990s 2000s Area Yield Price Diversification Interaction
  • 7. 0 10000 20000 30000 40000 50000 Gross returns Cost of cultivation Net returns C e r… Labour use in HVCs is 2-5 time times more than in cereals
  • 8. Net returns per ha: Small vs large farms 0 5000 10000 15000 20000 25000 All crops Horticultural crops Other crops Marginal Small Medium Large
  • 9. Diversification and smallholders  Landholding of small farmers is too small to allow them to divert more land out of staples toward HVCs at the cost of their household food security.  Cultivation of HVCs is capital-, and information- intensive, may restrict them to grow HVCs.  Most HVCs are perishable and are prone to greater risks, small farmers are risk averse.  Marketable surplus of HVCs is too small to be remuneratively traded in the urban markets due to high transportation and transaction costs.
  • 10. Marginal Small Medium Large % households growing HVCs 22.2 23.6 21.4 19.2 Fruits 3.6 3.8 4.7 4.9 Vegetables 16.8 17.7 13.4 9.8 Spices 4.0 4.4 6.1 7.1 % area allocated 38.7 24.8 25.5 22.6
  • 11. Diversification vs household food security 73.86 66.57 59.83 44.91 56.79 6.65 9.64 10.91 14.6 10.24 7.3 6.2 5.7 3.4 5.2 Marginal Small Medium Large All Cereals Pulses Oilseeds Horticultural crops Fibre Others Diversification happened displacing less profitable coarse cereals, and not staple food crops, rice and wheat
  • 12. Mean MPCE Head-count poverty Growers of HVCs Non growers of HVCs % differenc e Growers of HVCs Non growers of HVCs difference Marginal 526 455 15.6 24.1 30.2 -6.1 Small 559 511 9.4 16.9 20.3 -3.6 Medium 617 543 13.6 10.9 17.4 -6.5 Large 718 624 15.1 7.2 10.5 -3.5 All 558 488 14.3 19.6 25.4 -5.8
  • 13.  Livestock sector contributes 30% to AgGDP; more than combined share of rice and wheat  Contributes about 37% to agricultural growth  More equally distributed than land, smallholders share 53% of land, and 71-92% of different livestock species  Livestock sector growth has 1.4 times greater effect on poverty reduction compared to crop sector
  • 14.
  • 15.  By Farm size:  Compared to that of marginal farmers the per capita income of large farmers is 3 times, of medium farmers 2-times and of small farmers 1.5 times more.  By income class:  Those in top income class earn 9 times more compared to those in the lowest income class.  In the lowest income class three-fourths households are marginal farmers,  The distribution of marginal farmers across income classes= 77% in the lowest; 16% in the middle and 7% in the top income class.
  • 16. Income class Q1(Lowest) Q2(middle Q3(Highest) Per capita income (Rs) 60678 20639 50478 Net income from crops (Rs/ha) 25655 45683 79420 % area under HVCs 6.3 8.9 14.6 % owning livestock 47.1 58.3 59.3 % Non-farm business 7.8 16.5 20.7 % wages/salaries 52.1 69.4 73.4 Q1: Their cropping intensity is low. They have lower level of education, less access to credit and information.
  • 17. Concluding remarks Livestock sector needs policy support: 12% of agricultural expenditure, 5% of agricultural credit, extension support is missing Growth in high-value crops has largely come from area expansion, and not much from yield. Information system- returns from investment in information are higher in the diversified systems (17%) Enhanced access to credit, insurance Investment in public infrastructure that reduces transportation and transaction costs and induces the private investment in value chains Policies facilitating institutional arrangements like contract farming, producers’ organizations, and cooperatives that provide farmers easy access to markets, distribute price risks, and reduce marketing and transaction costs, include smallholders and