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Agricultural
Diversification and Small Holders in South
Asia
This volume contains edited version of research papers presented at these workshops relating to India, Pakistan, Sri Lanka, Bangladesh and Nepal. Issues discussed in this volume, inter alia, include policy environment that promotes farm-firm linkages, integrated domestic and global markets, innovative institutions and infrastructure development that helps the small farmers in reducing risks and transaction costs through improving access to information, appropriate technologies, production credit and knowledge of sanitary and phyto-sanitary requirements. Contract farming, cooperatives and corporate farming, farm-to-fork vertical integration and linkages have been analysed threadbare. A few success stories from different countries have been included. It is observed that though agricultural diversification is taking place in these countries, the speed is slow and not in pace with changing demand patterns. Improvement in disposable incomes, urbanisation and globalisation are changing demand patterns with decreasing consumption of cereals and increasing share of protective foods. Within cereals, the shift is towards fine food grains, especially wheat. An increasing share of fruits, vegetables, milk and milk products, eggs, poultry and meat, is identified as the driving force behind diversification of agricultural production patterns towards these high-value crops and commodities. It is conjectured that incomes of small holders in these countries can increase substantially if they diversify their production mix and incorporate these high-value enterprises. Very useful data and information have been presented on changing consumption and production patterns with a cognisable shifts towards high-value protective foods in these countries.
No doubt, diversification, as conjectured in this volume, can go a long way in improving the farm incomes of small holders, yet it cannot be considered as the be-all, end-all situation. The value of this volume could improve considerably, if some presentations could estimate the possible land area that could go under these alternative, high-value crops and commodities on a sustainable basis that is consistent with the shifting demand patterns over time, for the next 20 to 25 years. It is the area and production mapping, in response to the demand mapping, for various alternative commodities that would provide reliable estimates of the extent to which diversification will become feasible and remain sustainable in future. Another aspect of the small-holders’ economy is that over 80 per cent of the farmers are small and marginal holders in these countries. How many of these farmers and how much of their farmlands can experience sustainable diversification? What is the mechanism that would ensure that if not total at least a major chunk of these shifts towards high-value crops and enterprises will be shared by these small holders? We have to keep in mind that what helps small farmers, does not hinder the medium and large farmers in availing of the opportunities being thrown up by changing demand patterns. One cannot assume that benefits of changes in demand patterns will be appropriated by small holders. In fact, the medium and large farms are often better placed financially and otherwise to avail of such opportunities and they are often the early adopters. Small holders invariably follow as late adopters or laggards. The papers included in this volume have not taken cognisance of constantly increasing population pressure on land. Rural communities getting bottled up in villages due to lack of off-farm employment opportunities. There is a dire need to withdraw a large proportion of agricultural/rural population form the farm sector through pull-effect of off-farm gainful employment opportunities. After all the income problem of the farmers, particularly of small and marginal holders, cannot be solved within the farm sector. Limitations of contract farming, particularly of enforcing the provisions of lawful contracts, cooperatives and corporate farming have not been fully recognised in these presentations. From these angles, the book remains more of an academic exercise with a limited scope for application of results and recommendations at the field level. Yet, the book contains rich collection of data and useful information on various aspects of diversification in these five South Asian countries and makes for an interesting reading.
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Whereas per capita
consumption of fruits, vegetables, milk and milk products, eggs, fish
has increased in all these countries, meat consumption has not increased
except in Pakistan, may be because of pervasive vegetarianism in these
countries.