The Indian government is considering a novel approach to encourage farmers to switch from growing rice to other crops. The Ministry of Agriculture and Farmers’ Welfare has proposed using the money saved from the high economic cost of rice cultivation to fund this crop diversification. This idea was discussed with state officials and scientists during a recent conference.
The government calculates that the economic cost of growing rice on one hectare of land is about Rs 1.36 lakh. This figure includes expenses related to the Food Corporation of India’s (FCI) procurement, milling, transportation, and storage of rice. If a farmer chooses not to grow rice on a hectare or opts for a crop that is not part of government procurement, the government sees this as a saving of Rs 1.36 lakh per hectare.
Officials highlighted that rice farming often offers better profitability compared to alternative crops. For instance, in the 2021-22 season, the net returns for paddy cultivation were around Rs 56,226 per hectare. In contrast, maize yielded about Rs 17,856 per hectare, and moong (green gram) gave Rs 45,665 per hectare. This profitability gap discourages farmers from shifting to other crops.
To encourage this shift, the government believes incentives are needed. These incentives could be funded by the savings generated from reducing rice cultivation. The goal is to promote crops like oilseeds and pulses to reduce India’s reliance on imports for edible oils. India currently imports a significant amount of edible oil to meet its domestic demand.
While promoting diversification, the government assures that food security will not be compromised. They are looking at strategies like offering Minimum Support Price (MSP) or other price incentives for diversified crops. Assured procurement through agencies like Nafed and NCCF is also being considered.
The focus for crop diversification will be on areas where rice yields are lower than the national average or where the land dedicated to rice is less. Pulses and oilseeds will be promoted in stages, considering the local climate and soil conditions. In regions where FCI procures less wheat and paddy, promoting pulses and oilseeds is also a possibility.
Rice is a major crop in India, grown on over 514 lakh hectares across 614 districts. However, it is a very water-intensive crop, contributing to groundwater depletion in many areas. During the 2023-24 Kharif Marketing Season, FCI procured a significant portion of the rice produced in the country, with Punjab, Haryana, Chhattisgarh, and Odisha being the largest contributors to this procurement.
The move aims to conserve natural resources, improve farmers’ incomes, and enhance nutritional security for the nation. By strategically shifting away from water-intensive rice cultivation in certain areas and supporting alternative crops, India hopes to achieve a more sustainable and balanced agricultural system.