When farmers are adequately rewarded for their labour and investment, agriculture becomes a more appealing and sustainable livelihood option
In recent decades, there has been a significant trend towards consolidating farmland rather than creating new agricultural land. Between 2013-14 and 2018-19, agricultural land size decreased by 9.61 hectares. This decline occurred despite the total number of land holdings increasing from 71 million to 146.5 million, according to the Agricultural Census 2015-16.
The fragmentation of land holdings has led to lower yields, prompting stakeholders in the agricultural ecosystem to prioritise productivity improvement, yield increase, and cost reduction.
Small landholders, with less than an acre of land, often struggle to generate sufficient income from agriculture to support their families. In today's market, these small farmers face challenges such as transportation costs, unfair negotiations, and the need for immediate funds for the next crop season or to repay loans from previous harvests. This pressure often forces them to sell their produce at lower prices in local markets. As a result, the number of farmers is declining as younger generations in rural communities seek more stable and lucrative opportunities in off-farm sectors such as industry or services.
Today, when conversations about revitalising agriculture as a profession emerge, the focus frequently shifts towards leveraging technology for modernised practices, embracing precision agriculture, and building climate resilience, among other methods to boost productivity. Undoubtedly, these factors are pivotal in ensuring food security for our expanding population. Enhanced production undeniably plays a crucial role in ensuring that every plate is filled and eradicating hunger in our communities.
Indeed, it's crucial to widen the discourse and incorporate the perspective of the farmer, who often lacks control over the pricing of their produce. While reducing farming costs and increasing yields are vital steps towards profitability, the determining factor lies in securing the right price for the increased production. From selecting the land area for cultivation to choosing the crop, purchasing inputs, and accessing agricultural credit and insurance, farmers constantly grapple with decisions aimed at maximising their returns. Ultimately, the foremost concern in a farmer's mind is the expected market price and its impact on their investment.
While advancements in farming techniques are undoubtedly crucial for improving productivity, equal emphasis must be placed on ensuring that farmers receive fair prices for their produce. This involves compensating farmers based on the quality of their yield, at the appropriate time, and directly at the farm gate. Recognising the importance of fair pricing goes beyond economic justice for farmers; it is a cornerstone of sustaining the agricultural sector and global food security.
When farmers are adequately rewarded for their labour and investment, agriculture becomes a more appealing and sustainable livelihood option. This, in turn, inspires younger generations to participate in farming, ensuring the continuation of agricultural practices and preventing the migration of talent from rural areas.
Ensuring the right price at the right time for farmers offers a significant advantage: it alleviates indebtedness and the need for distressed sales. With fair compensation, farmers can effectively repay loans, reinvest in their farms, and support their families. This breaks the cycle of debt that commonly burdens small-scale farmers, liberating them from exploitative lending practices and empowering them to prosper autonomously.
From a broader perspective, ensuring the right price at the right time for farmers is crucial for global food security. Small-scale farmers play a vital role in food production, especially in developing countries. By providing them with fair prices for their produce at the farm gate, we not only improve their livelihoods but also strengthen the stability of the entire food supply chain. Adequate compensation incentivises farmers to invest in sustainable farming practices, which can have long-term benefits for food security and environmental sustainability.
(Ashutosh Singh is COO & Co-founder at Ayekart.)