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Revitalization of Rivers in India Draft Policy - Isha Guru Jaggi Vasudev

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<strong>Revitalization</strong> <strong>of</strong> <strong>Rivers</strong> In <strong>India</strong><br />

<strong>Draft</strong> <strong>Policy</strong> Recommendation<br />

When such a small pie is shared by a huge number <strong>of</strong> farmers, the pr<strong>of</strong>it<br />

marg<strong>in</strong>s naturally go down. While the data show that there is a reduction<br />

<strong>in</strong> consumption <strong>of</strong> wheat and rice by 1-2% <strong>in</strong> rural and urban areas, there<br />

is an <strong>in</strong>crease <strong>in</strong> the consumption <strong>of</strong> fruits and vegetables by 2-3%. 21 This<br />

is an annually observed trend. It is observed that most farmers across<br />

the country only manage to break even by produc<strong>in</strong>g the staples <strong>of</strong> wheat<br />

and rice, but they realize higher pr<strong>of</strong>it through fruits, vegetables and<br />

other produces. Are farmers then not aware <strong>of</strong> the difference <strong>in</strong> pr<strong>of</strong>it<br />

realization? Or are there other reasons why they choose to stick to rice<br />

and wheat and realize lesser marg<strong>in</strong>s? In fact, there are a set <strong>of</strong> valid<br />

reasons why our farmers do not move <strong>in</strong>to produc<strong>in</strong>g any other crop than<br />

what they have conventionally produced:<br />

••<br />

When a farmer transitions to a new crop, he needs to learn all about<br />

this crop and bridge the knowledge gap<br />

••<br />

He may not know if the agro-climatic conditions <strong>of</strong> his farm can<br />

produce good yields <strong>of</strong> the new crop<br />

••<br />

As farmers are not an organized group to plan and decide when and<br />

what to crop, they get dictated by the market’s needs or a middle man<br />

asks them to produce what he wants<br />

••<br />

A farmer’s economic condition makes his ability to handle risks<br />

associated with transition<strong>in</strong>g from one crop to another very low.<br />

When farmers produce perishables, their vulnerability to the market<br />

is higher than with staple crops, and they have very little control on<br />

price volatility.<br />

••<br />

Lack <strong>of</strong> cold storage facilities forces them to sell their produce as<br />

quickly as possible without be<strong>in</strong>g able to wait to realize decent<br />

marg<strong>in</strong>s on their produce<br />

••<br />

Last but not the least, there is no m<strong>in</strong>imum support price for<br />

perishables.<br />

129

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