Q.3 Explain the factors influencing the decision of the farmers on the selection of high value crops in India. (UPSC CSE 2025, GS PAPER-3) (Answer in 150 words,10 marks)

APPROACH

The Introduction: Introduce the fact that Indian agriculture is undergoing the shift in terms of crop production

The Body

    • Elaborate various factors which influence farmers’ choice for high-value crops
    • Talk about the shift being seen in terms of consumption pattern

 

The Conclusion: Sum up the whole discussion in a small paragraph with a concluding remark

The Introduction:

Indian agriculture is undergoing a gradual shift from traditional food grains to high-value horticultural crops like fruits, vegetables, spices, flowers and medicinal plants. There are many factors which have contributed to such a shift but in economic sense it is the improved margins which largely drives this shift. This shift is also important from the sustainable agriculture perspective which is not a choice but a compulsion.

The Body

Factors Influencing Farmers’ Choice of High-Value Crops in India

1. Market demand and prices: Farmers are influenced by consumer demand in cities. For example, rising demand for exotic vegetables like dragon fruit and lettuce has led peri-urban farmers near metro cities to shift from wheat to such exotic vegetables. Higher price realisation compared to cereals attracts farmers.

2. Climate factors and weather vagaries: Rainfall uncertainty pushes farmers toward crops that give better returns even on small land. For example, in drought-prone Vidarbha, cotton is preferred over paddy despite risks. Similarly, Punjab is known for Basmati rice cultivation due to a wider market  despite agro-climatic conditions do not support it.

3. Supportive government policies: Although MSP (Minimum Support Price) is announced mainly for cereals, horticulture crops get support through schemes like Mission for Integrated Development of Horticulture (MIDH) and export incentives. Farmers in Uttar Pradesh extensively grow sugarcane due to higher State Advised Prices (SAP) which is over and above the Fair and Remunerative Prices which is an important policy initiative.

4. Access to irrigation and technology: High-value crops like vegetables and flowers need assured irrigation. Areas with drip irrigation support (under PM Krishi Sinchayee Yojana) see greater adoption of these crops.

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

6. Export opportunities: Global demand shapes farmer choices. India’s spice exports touched 4.5 billion USD in 2024-25, encouraging Kerala and Rajasthan farmers to expand production.

7. Social and generational factors: Younger consumers are more experimental. The rise of healthy food and aesthetics in serving has increased the demand of experimental crops which have very high margins. For example, vegetables like olives, jalapeno and mushroom have seen tremendous demand increase.

The Conclusion

The decision to grow high-value crops is shaped by a wide range of factors. While opportunities are growing due to urbanisation and exports, challenges like market volatility and lack of insurance remain. Strengthening infrastructure, providing assured markets and diversifying support beyond cereals can empower farmers to make sustainable choices.

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