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New PPP model for smallholder agriculture

Small holdings are constraint to achieve high productivity but attempts are on to overcome this

Policy Pulse
Publish Date: May 26 2016 3:36PM | Updated Date: May 26 2016 3:42PM

New PPP model for smallholder agriculture
New model of ‘PPP’ or people-to-people partnerships is yielding positive outcomes for the small holdings agriculture for achieving higher productivity.
 
While a lot of media attention has focused on rural distress arising from back-to-back droughts, even linking these to policy distortions encouraging water-guzzling cropping practices, there hasn’t been much reporting on certain basic changes in India’s agricultural landscape over the past two decades.
 
About two decades ago, some three-fourths of the value of India’s agricultural GDP was constituted by staples like cereals, pulses and oilseeds but today, that share has diminished to a fourth; the balance is largely accounted for by so-called high value agriculture (HVA) produce that include horticulture, livestock, fisheries and fibres.
 
Significantly, it is small holders who cultivate less than five acres — the average size of Indian farms is just over 2.8 acres — who have invested heavily in HVA. Their share in the supply of HVA produce has registered steady increase. It attests to their ability to adapt to demand and compensate for smaller size of holding through producing crops that generate more value per acre.
 
Over a thousand farmer producer organizations (FPOs) have registered across the country in recent years, with their numbers growing every day. These new generation collectives are learning to 
overcome the constraints endured by the earlier wave of agricultural cooperatives, which clearly failed to deliver on the promise of empowering farmers.
 
New PPP model, smallholder agriculture, agriculture, crops, FPS, People to people partnership.