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Transitioning from Paddy to Sustainable Crops
Context:
The Centre and the Punjab government deserve praise for launching a new initiative aimed at diversifying agriculture and assisting farmers in moving away from paddy cultivation.
Need for Initiative:
- Bold collaboration between the Centre and the Haryana and Punjab governments is essential.
- Suggested cost-sharing model: 60:40 or 50:50 ratio.
Current Efforts:
- Punjab government offers Rs 17,500 per hectare for farmers transitioning from paddy to less water-intensive crops.
- Scheme targets up to five hectares per beneficiary, costing Rs 289.87 crore for 2024-25.
- Haryana has a similar scheme, but results are underwhelming.
Profitability Issues:
- Research indicates paddy farmers in Punjab receive Rs 38,973 per hectare in subsidies, making it more profitable than alternatives.
- Required incentive to shift from paddy is Rs 35,000 per hectare, double the current offering.
MAHARISHI Initiative: Strengthening Millets Research Collaboration:
- The MAHARISHI Initiative, launched during India’s G20 presidency, focuses on enhancing research in millets and ancient grains to improve food security, nutrition, and agro-biodiversity.
- Based at IIMR Hyderabad with global support, it promotes collaboration, knowledge sharing, and digital platforms to address global agricultural challenge
Long-Term Policy Framework:
- A five-year operational period is essential to provide stability and encourage farmers.
- Current policy lacks clarity on the duration of the incentive.
Market Guarantees:
- Assurance of Minimum Support Prices (MSP) for alternative crops (e.g., pulses, oilseeds) is crucial.
- NAFED must ensure effective procurement to minimise market risks for farmers.
- The Export Credit Insurance (ECI) program from EXIM Bank protects exporters against non-payment risks, covering commercial risks, political risks, and trade regulation changes.
Environmental Benefits:
- Diversification will prevent soil degradation, reduce groundwater depletion, lower greenhouse gas emissions, and enhance crop biodiversity.
- Paddy requires 20-25 irrigations, whereas pulses, oilseeds, and millets require less than four.
Financial Reallocation:
- Proposed shifting of existing subsidies (power, canal water, fertilisers) to support alternative crops.
- Redirecting funds from paddy procurement could stabilise prices for non-paddy crops.
Carbon Credit Opportunities:
- Diversifying crops may yield up to four carbon credits per hectare, facilitating the development of carbon markets.
Support for Horticulture:
- A market-oriented, cluster-based approach for high-value horticulture crops should be prioritised.
- Farmer Producer Organisations (FPOs) can aid in aggregation, packaging, and branding for export markets.
De-Hyphenating Rice and Wheat:
- Different Challenges:
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- Rice faces surplus issues, while wheat production is declining amid rising consumption.
- Rice exports were high (21.21 million tonnes in 2021-22) while wheat exports plummeted (0.19 million tonnes in 2023-24).
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- Production Constraints:
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- Rice can be grown in kharif and rabi seasons, while wheat is limited to a single rabi season, making wheat production more volatile.
- Climate change is affecting wheat yields more severely than rice.
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- Consumption Patterns:
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- Wheat consumption is rising, particularly in processed forms (maida, sooji), while rice consumption trends are less pronounced.
- Urbanisation and rising incomes contribute to increasing wheat demand.
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Policy Implications:
- Strategic Differentiation:
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- Rice and wheat should be treated distinctly in agricultural policy, reflecting their unique production and consumption dynamics.
- Immediate lifting of rice export bans and duties is necessary to manage surplus stocks.
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- Agri-Policy Reforms:
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- Shift focus to enhancing per-acre yields and developing climate-smart varieties for wheat.
- Incentivise pulse cultivation through comparable subsidies to ensure self-sufficiency and improve dietary health.
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Sustainable Food Security Goals:
- Long-Term Planning:
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- Achieving food security sustainably requires comprehensive measures, including agricultural R&D, irrigation improvements, and land-lease markets.
- According to the Economic Survey 2018-19, the share of expenditure on agricultural research and education in agricultural GVA is only 0.37%.
- Nutritional security must be prioritised alongside food security, addressing child malnutrition (35% stunted growth in children under five).
- Researchers found that districts with low soil zinc availability had significantly higher rates of child stunting and underweight conditions.
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- Collaborative Efforts:
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- Success hinges on cooperative policymaking between the Centre and state governments, leveraging existing resources for sustainable agricultural practices.
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