A lesson from Beed in raising farmers' incomes, Pg10

Key Highlights:

• Krishikul, an initiative by Global Vikas Trust (GVT) in Beed, Maharashtra, increased farmer incomes tenfold by transitioning from traditional crops to fruit crops.
• An evaluation by the Tata Institute of Social Sciences (TISS) in 2024 showed per-acre income rising from Rs 38,700 to Rs 3.93 lakh.
• GVT has planted over 6.7 crore fruit trees across 43,000 acres, benefiting around 30,000 farm families in 5,000 villages.
• Key strategies included building farmer trust, providing subsidized saplings, recharging groundwater, and facilitating bank credit with a first-loss default guarantee (FLDG).

Detailed Insights:

• The Prime Minister's goal to double farmers’ real incomes by 2022-23 saw limited success, achieving less than 50% according to ICRIER research.
• Krishikul encouraged farmers to shift from crops like soybean and cotton to fruits like papaya, custard apple, and pomegranate.
• Motilal Oswal Foundation contributed Rs 25 crore to establish Krishikul's infrastructure, including a 25-acre research and training center.
• Global River Aquashafts were used to recharge the water table, raising groundwater levels from 400 feet to 50 feet, ensuring irrigation for fruit crops.
• To further increase farmer income, focus must be given to controlling the value chain, ensuring farmers receive at least 60% of the consumer's rupee.
• The success of Krishikul can be scaled up nationwide through a collaborative effort between the government, NGOs, and businesses.
• The White Revolution, led by Verghese Kurien, serves as an example of successful agricultural transformation through government support and strategic planning.

Key Concepts Involved:

• High-Density Plantation: Planting crops closer together than traditional methods to maximize yield per unit area.
• First-Loss Default Guarantee (FLDG): An agreement where a third party covers the initial losses on a loan, reducing risk for the lender.
• Value Chain: The entire sequence of activities required to turn raw materials into a final product and deliver it to the end consumer.