Q. Explain the factors influencing the decision of the farmers on the selection of high value crops in India.

Model Answer:

High Value Crops (HVCs) like horticulture, spices, and floriculture offer greater net returns per hectare than traditional cereals. Their adoption by Indian farmers is driven by multiple interconnected factors.

1. Key Factors Influencing HVC Selection

• Economic Viability: Higher profit margins and changing urban dietary patterns toward nutrition-dense foods drive adoption (e.g., Dragon fruit in Gujarat).
• Ecological Suitability: Rising water scarcity and degraded soils prompt shifts from water-guzzling paddy to climate-resilient HVCs (e.g., Kinnow in Punjab).
• Infrastructure Access: Proximity to urban centers and availability of cold chains, transport, and processing hubs minimize perishability risks (e.g., Mega Food Parks).
• Policy Support: Targeted subsidies via the Mission for Integrated Development of Horticulture (MIDH) and price stabilization under Operation Greens lower capital barriers.
• Market Linkages: Contract farming, FPO formations, and e-NAM integration ensure assured procurement and better price realization.
• Resource Endowments: The high labor intensity of HVCs efficiently absorbs family labor, maximizing returns on India’s fragmented smallholdings.

Transitioning to High Value Crops is pivotal for realizing the Ashok Dalwai Committee’s vision of Doubling Farmers’ Income, necessitating continued investments in agri-logistics and market-linked extension services.