QUES . Explain the factors influencing the decision of the farmers on the selection of high value crops in India. Answer in 150 words.10 marks. UPSC MAINS 2025. GS PAPER 3

HINTS:

In the recent decades, there have been substantial changes in the patterns of production, consumption, and trade in Indian agriculture. One is the shift in production, from foodgrains to high-value crops such as fruits, flowers, spices and vegetables. The transition has not only reshaped the country’s agricultural landscape but also improved the income of farming households in the country.

Must read: Changes in cropping pattern in India

However, farmers’ decision to adopt these high value crops is shaped by a combination of economic, ecological, infrastructural, and policy-related factors.

Economic Factors Influencing the Selection of High Value Crops

Higher Returns or Profitability potential: High-value crops often provide 2-5 times higher returns per hectare compared to traditional crops. Crops like saffron, cardamom, and vanilla offer significantly higher returns than traditional cereals. Higher price realisation compared to cereals attracts farmers.

Market Demand: Farmers are influenced by consumer demand in nearby cities. For example, rising demand for exotic vegetables like broccoli, asparagus, red and yellow capsicum, lettuce, zucchini, cherry tomatoes, and baby corn has led peri-urban farmers near metro cities to shift from wheat and rice to such exotic vegetables.

MSP Assurance and other Supportive Government Policies: Government’s Minimum Support Price for crops like mustard and safflower provides income security. Horticulture crops get support through schemes like Mission for Integrated Development of Horticulture (MIDH) and export incentives.

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Export Demand and Opportunities: Global demand shapes farmer choices. For example, international market demand for basmati rice, spices, grapes, saffron and organic produce influences farmer decisions.

Value Addition Potential: Crops allowing processing like sugarcane to jaggery attract farmers.

Environmental Factors Influencing the Selection of High Value Crops

Climate Suitability: Kashmir’s saffron, Kerala’s cardamom, and Meghalaya’s turmeric demonstrate region-specific advantages.

Soil Compatibility: Black cotton soil in Maharashtra supports cotton and soybean cultivation.

Technological Factors Influencing the Selection of High Value Crops

Technology Access: Precision farming techniques in Punjab and Haryana enable efficient high-value crop production.

Access to Irrigation: High-value crops like vegetables and flowers need assured irrigation. Areas with drip irrigation support see greater adoption of these crops.

Institutional Support Influencing the Selection of High Value Crops

Credit and insurance availability: It influences the risk-taking capacity of farmers. For example, Kisan Credit Card schemes enable investment in high-input crops.

Must read: Importance of crop insurance for small and marginal farmers

Post-Harvest Infrastructure: Cold storage facilities influence decisions for fruits and vegetables.

Farmers Producer Organisation (FPO): FPOs presence enables small farmers’ participation.

Must read: Farmer Producer Organisation (FPO)- Significance and Problems faced

Knowledge and Training: Krishi Vigyan Kendra programs influence adoption of new crops and varieties.

Market Linkages: End-to-end supply chain till consumers, also prompts farmers to choose certain type of agri-product.

Must read: Measures undertaken to improve the marketing of agricultural products

Extension Services: Access to extension services, and demonstration effects from progressive farmers significantly impact adoption decisions.

Must read: How does e-Technology help farmers in production and marketing of agricultural produce?

Social and Personal Considerations Influencing the Selection of High Value Crops

Risk Tolerance: Small farmers often prefer traditional crops due to lower risk perception.

Labour Availability: Labor-intensive crops like floriculture require adequate workforce.

Small landholdings: It favours labor-intensive vegetables.

Entrepreneurial Spirit: Farmers’ entrepreneurial spirit also influences the decision of the farmers on the selection of high value crops.

Conclusion

A future road map for high-value agriculture development should focus on investment in technology development and dissemination, basic infrastructure, improvement of technical capacity of producers and other players in the value chain, institutional support in core functions of production, logistics and marketing through concerted public sector support and active public-private partnerships, and provision of quality inputs, in particular planting materials for fruits and seeds for vegetables.