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Informist, Thursday, Aug. 28, 2025

MUMBAI – Establishing stronger linkages among farmers, export markets and urban consumers will be critical for accelerating agricultural growth and development in India in the coming years, according to a paper by the Reserve Bank of India staffers. Additionally, intercropping of horticultural and non-horticultural crops holds the promise for improving yields, enhancing soil health, and augmenting the incomes of farmers.

Agricultural growth in India has been driven by sustained improvements in yield, higher cropping intensity, and a clear shift towards diversification, especially into horticulture, in the past three decades. However, the sector still grapples with yield and price volatility, worsened by insufficient cold storage, according to the paper.

Strengthening agricultural research to develop technologies that address emerging challenges such as climate change and pest management, while also improving productivity remains imperative. "The growth of agroprocessing industries can unlock the potential for higher export growth, reduce post-harvest losses, and generate employment opportunities in the rural economy," according to the paper.

While horticulture presents significant opportunities, key challenges that persist are the unpredictability of yields, insufficient storage infrastructure, and the volatility in prices. Government interventions such as the Mission for Integrated Development of Horticulture have made efforts to address such challenges. This umbrella scheme encompasses key programmes, including the National Horticulture Mission and the Horticulture Mission for North East and Himalayan States, which focus on providing high-quality planting material and tissue culture units, expanding cultivation areas, and promoting advanced horticulture technology, it said.

India grapples with substantial post-harvest losses, estimated to be around INR 1.5 trillion annually, with fruits and vegetables bearing the brunt due to insufficient cold storage. "Effectively addressing these post-harvest losses necessitates a dual approach encompassing the expansion of cold chain infrastructure and the reinforcement of the food processing sector to prolong the shelf life of agricultural commodities," the paper said.

Price volatility also acts as a significant disruptor, influencing farmers' crop choices, input application, and technology adoption, while also injecting uncertainty across the agricultural value chain. Volatility in prices of fruits eased from 2012-13 to 2022-23 compared to the preceding decade. Conversely, prices of vegetables intensified over the same period, except for peas and cauliflower. 

However, prices of rice and wheat were stable during 2012-13 to 2022-23 when compared to fruits and vegetables. Farmers have shown persistent preference for these crops over more volatile fruits and vegetables given the Food Corporation of India's primary focus on these. The combination of assured buyers, lower price fluctuations, and rising price trends likely contributes to farmers' choices, it said.  End

Reported by Ashutosh Pati

Edited by Deepshikha Bhardwaj

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