Doubling farm income needs to rethink news ideas – Centrum report.
A Centrum Broking report says that rising food prices are still a worry, and the fact that the government bought less grain in May is still a big worry for farmers.
The bigger worry, though, is that the farmers’ income is going down and that nothing is being done to help them produce more so that India doesn’t have to import food grains from other countries like it did in 2007 and 2016.
‘Strong growth in the FMCG industry can only happen when poor people have more money to spend. When this happens, the demand goes through the roof, and the company’s finances don’t need any kind of boost ‘Centrum said this after talking with Devinder Sharma, who has studied agriculture and is a trained scientist.
Even though the government has taken steps like subsidizing fertilizers, setting minimum support prices (MSPs) for crops (which are reviewed before each season), and giving Vietnam procurement benefits, farmers in the country are in a lot of trouble.
Sharma made a few suggestions, such as putting more focus on mechanizing the farms, making sure prices stay the same so that production goes up even more, and giving farmers a guarantee of income, which could help the economy in a big way.
‘The production push drives the supply chain of the country. Several startups are doing good work to help farmers learn about their crops and keep an eye on them. The new way of thinking needs to spread to the second part of the supply chain, where the market needs to be pushed to be more driven by customer needs ‘Udit Sangwan, one of the founders of Agrigator, a platform for the agricultural supply chain, said this. ‘This will close the information gap and make it easier for farmers to see what consumers want, which will help them plan their crops better and earn them more money.’
According to the report, if the whole ecosystem is rethought, improving agriculture’s contribution and output could become a growth engine for the Indian economy. This is because traditional systems haven’t done much to help farmers double their income.