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UPSC Mains 2025Question 3General Studies 3Economy150 words

Explain the factors influencing the decision of the farmers on the selection of high value crops in India. (Answer in 150 words)

Model answer & approach

- Explain the factors influencing the decision of the farmers on the selection of high value crops in India. (Answer in 150 words)
Introduction
The decision of farmers to cultivate high-value crops—such as fruits, vegetables, spices, flowers, and plantation crops—depends on a combination of economic, environmental, and institutional factors that determine profitability and risk.
Body
1. Economic Factors:
- Market Demand and Price Volatility: Farmers shift to high-value crops when demand and prices are stable and remunerative.
- Cost of Inputs and Labour: Availability and affordability of fertilizers, water, and labour affect crop choice.
- Profitability and Risk: Expected returns per hectare influence diversification away from cereals.
2. Environmental and Resource Factors:
- Agro-climatic Suitability: Temperature, rainfall, and soil fertility determine viable high-value crops (e.g., apples in Himachal, spices in Kerala).
- Irrigation Availability: High-value crops often require reliable water sources.
3. Institutional and Policy Factors:
- Access to credit, extension services, cold storage, and market linkages encourages crop diversification.
- Government initiatives like HORTNET and MIDH promote horticultural crops.
Conclusion
Farmers’ shift to high-value crops in India is guided by a balance of profitability, resource availability, and institutional support, linking agricultural decisions to both market opportunity and ecological sustainability.
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