A recent study led by agricultural economist Ashok Gulati and researchers from the Indian Council for Research on International Economic Relations (ICRIER) sheds light on the potential for enhancing farmers’ incomes through livestock and fisheries. Titled “New Deal for Agriculture for Viksit Bharat@2047”, the study recommends five policy options aimed at benefiting farmers while ensuring minimal impact on the broader economy.
The study underscores the importance of diversifying away from traditional crops towards high-value commodities such as the livestock sector and fisheries. Over the years, these sectors have witnessed significant growth, with the livestock sector’s contribution to agricultural household income rising from 4 percent in 2002-03 to 16 percent in 2018-19.
Innovations in institutional frameworks, including contract farming and vertical integration of farm operations, have propelled the poultry industry to become one of India’s fastest-growing sectors. Similarly, the fisheries sector has emerged as a key player, accounting for 15.2 percent of agricultural exports in 2022-23.
The study advocates for adopting innovative production techniques, such as controlled environment setups in polyhouses equipped with fertigation, to enhance productivity and farmer incomes while conserving resources like water and fertilisers.
Looking ahead, the authors anticipate growing demand in these sectors as consumer incomes rise and dietary preferences evolve. They recommend fostering private sector involvement to develop efficient value chains through a cluster-based approach, presenting a promising investment strategy.
By prioritising livestock and fisheries and implementing supportive policies, India can unlock new avenues for farmers to increase their incomes sustainably. This strategic shift aligns with evolving market dynamics and holds the potential to drive inclusive growth in the agricultural sector.
