Six Ideas for Resilient Indian Agriculture
Why in the news
Despite strong output of major crops, Indian farming struggles with rain dependence, small holdings, thin credit, technology gaps, post-harvest losses and price swings. Six market-oriented ideas were proposed to make it resilient.
Key facts
| Idea | Main points |
|---|---|
| Commercialise | Contract and corporate farming with safeguards; retail and processor links |
| Exports | Go beyond basmati and sugar to processed dairy, horticulture, millets; curbs only rarely |
| eNAM | Real-time prices; sell in mandi of choice |
| Futures | Reintroduce for cereals, pulses, oilseeds; FPOs trade on NCDEX or MCX |
| Warehouse receipts | Collateral for credit; fewer middleman losses |
| Warehousing | Modern storage with grading and assaying, valued like roads and railways |
Highlights
- Futures help prevent the cobweb cycle of crashes after overproduction.
- Banks trust receipts because quantity, quality and price are verified.
Exam angle
- Terms: cobweb cycle, warehouse receipt, FPO.