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Agriculture Strategy

Farmers to produce what the market wants

For the first time, the state government is going to regulate the production of crops in India. Farmers in Telangana are going to produce what the market wants. It’s a big move in the right direction and will set ground for a new beginning of Demand Driven Agriculture. This Kharif season, the farmers will be asked to grow paddy on 50 lakh acres (including the Telangana Sona variety on 10 lakh acres of land), cotton on 50 lakh acres and red gram on 10 lakh acres. Farm lands nearer to urban areas will grow vegetables and horticultural crops to tap the demand.

“One should cultivate crops which sell well. They don’t buy whatever you produce”.

Telangana Chief Minister K Chandrashekar Rao

Asking the farmers to strictly adhere to the cropping pattern, Chief Minister K Chandrashekar Rao has said that government sops such as ‘Rythu Bandhu’ (₹5,000 each for farmers in both the seasons for every acre they own) will be stopped to the farmers who don’t conform to the cropping plan.

Farmers base next years supply purely on the previous price and assume that next year’s price will be the same as last year (adaptive expectations). These fluctuations in price may cause some farmers to go out of business.

Limitations of Cobweb theory

As the government is attempting to go beyond advisory and extension roles, it will revamp the Department of Agriculture to take up additional responsibilities. The government will also bring in necessary amendments to the Seed Act.

Read more at The Hindu Business Line