[vc_row][vc_column][vc_column_text css=”.vc_custom_1677908770556{border-top-width: 1px !important;border-right-width: 1px !important;border-bottom-width: 1px !important;border-left-width: 1px !important;border-left-color: #000000 !important;border-left-style: solid !important;border-right-color: #000000 !important;border-right-style: solid !important;border-top-color: #000000 !important;border-top-style: solid !important;border-bottom-color: #000000 !important;border-bottom-style: solid !important;border-radius: 3px !important;}”]

Doubling Farmers’ Income

[/vc_column_text][vc_separator css=”.vc_custom_1647339034936{margin-bottom: 30px !important;}”][vc_column_text css=”.vc_custom_1677910337548{margin-bottom: 15px !important;}”]The next 25 years are labelled by Prime Minister Narendra Modi as Amrit Kaal which translates to a period of golden era. If India is able to maintain the current growth trajectory till the next 25 years, then it is estimated that by the year 2047, we would have a GDP of $26 trillion with a per capita GDP of $15,000, which is roughly seven times of our current per capita GDP. India Inc. is confident that they will be able to contribute to this growth and their belief is bolstered by government support, rising demand and a stronger foothold in global landscape.

One sector that is of utmost importance to achieve this goal is Agriculture and allied activities. India is primarily considered an agrarian economy since more than 50% of our population is engaged in agriculture activities. But despite such massive participation, agriculture’s contribution to GDP is roughly 20%.

In the last hundred years, mankind accomplished an incredible feat in food production by multiplying crop harvests six-fold. Despite the global population growing at a slower rate of less than four times, this means that the average person today has access to a staggering 50% more food than their great-great-grandparents. Most of the increase in production can be attributed to efficiency gains as farmers cultivated more food from each hectare of land. The extraordinary progress is due to the Green Revolution (GR) that turbocharged modern inputs for farming. Globally, GR has single-handedly saved over a billion lives from the grip of hunger, an unprecedented feat in human history.

Research shows that a 1% increase in agricultural value added per hectare can bring about a quick 0.4% drop in poverty and a long-term 1.9% decrease, achieved through a combination of lower food costs and increased wages.

Since time immemorial, increasing crop yields has been the bane of every farmer’s existence. Farming communities worldwide have researched, experimented and discussed extensively what factors affect crop yield most and how they can assure an increased crop yield per acre. Now, with a looming food security crisis, burgeoning world population, global supply chain disruptions and dwindling natural resources, the concern for increasing crop yield has become global.

There are multiple steps that farmers can take to ensure a better yield for their crop:

Selecting the high-yielding variety seed
Using organic fertilisers / bio-fertilisers
Effective control over pests and diseases
Using modern technology for sowing and harvesting
Using efficient irrigating methods
Leveraging technology to make the most of the fields and climatic conditions

Government implements several developmental programmes, schemes, reforms and policies for the welfare of farmers by modernizing and rationalizing use of inputs so as to decrease cost, increasing crop production, remunerative returns and income support, which have been able to augment income of farmers directly or indirectly. These include:

Supplementary income transfers under Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme,
Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY) for providing old age pension,
Crop insurance under Pradhan Mantri Fasal Bima Yojana (PMFBY),
Increase in Minimum Support Price (MSPs) for all Kharif & Rabi crops,
Soil Health Cards for rationalizing use of fertilizers,
‘Per drop more crop’ initiative through drip/sprinkler irrigation for optimal utilization of water, reducing cost of inputs and increasing productivity,
Paramparagat Krishi Vikas Yojana (PKVY) for promoting organic farming,
e-NAM initiative for transparent and competitive online trading platform,
Agro-forestry through ‘Har Modh Par Ped’ for additional income,
National Bamboo Mission to promote bamboo plantation on non-forest government as well as private land and emphasis on value addition, product development and markets,
New procurement policy under Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) for ensuring remunerative prices for produce,
Bee-keeping under Mission for Integrated Development of Horticulture (MIDH) to increase productivity of crops through pollination and increase in honey production as an additional source of income,
Ensuring flow of adequate institutional agriculture credit and benefit of interest subvention,
Kisan Credit Cards (KCC) offering production loan to even dairy & fishery farmers besides agricultural crops,
Better access to irrigation under Pradhan Mantri Krishi Sinchai Yojana (PMKSY),
Formation and promotion of 10,000 FPOs,
Special attention for creation of infrastructure through Agri Infrastructure Fund (AIF) with a size of Rs. 100,000 crore,
National Mission for Sustainable Agriculture (NMSA), which aims to evolve and implement strategies to make Indian agriculture more resilient to the changing climate.
All these have been possible due to unprecedented enhancement in budget allocation for agriculture from Rs. 27662.67 crore in 2013-14 to to Rs. 1,32,513.62 crores in 2022-23.

One sector that will prove to be of utmost importance going forward would be of hybrid seeds. We are witness some of the most adverse climatic conditions in todays times and yield of fruit and vegetables has started to fall. Against this background, it becomes essentials that the seeds that farmers use are made adaptable to the area that they are sowed in. In addition to the support from government, special seeds, irrigation practices, crop protection regimes and agri-technology will play an important role in increasing crop yield and boosting farmers income.

Two of the many companies that are in the business of hybrid seeds are Bombay Super Hybrid Seeds Ltd. And Kaveri Seeds Company Ltd. They both have a strong foothold in rural India and a proven track record. Both these companies also spend handsomely in Research and Development activities to better their products. Below is a financial snapshot of both the companies:[/vc_column_text][vc_single_image image=”72849″ img_size=”large” alignment=”center” css=”.vc_custom_1677909973613{margin-top: 20px !important;margin-bottom: 20px !important;}”][vc_single_image image=”72850″ img_size=”large” alignment=”center” css=”.vc_custom_1677909991348{margin-top: 20px !important;margin-bottom: 20px !important;}”][vc_single_image image=”72851″ img_size=”large” alignment=”center” css=”.vc_custom_1677910009127{margin-top: 20px !important;margin-bottom: 20px !important;}”][vc_single_image image=”72852″ img_size=”large” alignment=”center” css=”.vc_custom_1677910025764{margin-top: 20px !important;margin-bottom: 20px !important;}”][vc_column_text css=”.vc_custom_1677910344369{margin-bottom: 15px !important;}”]Bombay Super Hybrid Seeds Ltd. share price has increased close to 700% in a one year period, It currently has a price to earning ratio of 28x and a EV/EBITDA of 30x.[/vc_column_text][vc_zigzag][vc_column_text]

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