Agriculture cannot be sustainable unless it is economically viable over the long term. Conven-
tional agriculture poses greater long-term economic risks than "sustainable" alternatives.
Export vs local orientation: Governments tend to view export-oriented production systems as more important than those that supply domestic demands. This is misguided. Focusing on exports alone involves hidden costs: in transport, in assuring local food security, etc. Policies should treat domestic demand and in particular food security (either by farmers producing food for themselves, or by selling produce for cash they can use to buy food) as equally important to the visible trade balance.
Debt: The Green Revolution raised India’s grain output significantly, but a vast number of small-scale farmers ran into a debt trap: they took out loans to raise their production, then found they could not pay the money back. About 40,000 were so desperate that they committed suicide.
Risk: Concentrating on specific commodities seems to promise high economic returns. But market production implies certain risks: markets change quickly, and international agricultural prices are dropping. Cheap foreign food may sweep into the national market, leaving Indian farmers without a market. As a World Trade Organization signatory, the Indian government is under pressure to deregulate and open its economy to the world market, so cannot protect its farmers behind tariff walls.
Niche markets: Organic agriculture is one of the strongest ways to farm in an environmentally sustainable way. The demand for certified organic products is increasing quickly, opening opportunities to expand sales of such products and to explore niche markets.
Employment Farming is the main source of employment for rural people. Trends towards specialization and mechanization may increase narrowly measured "efficiency", but they reduce employment on the land. The welfare costs of unemployment must be taken into account when designing national agricultural support programmes. Sustainable agriculture, with its emphasis on small-scale, labour-intensive activities, helps overcome these problems.
tional agriculture poses greater long-term economic risks than "sustainable" alternatives.
Export vs local orientation: Governments tend to view export-oriented production systems as more important than those that supply domestic demands. This is misguided. Focusing on exports alone involves hidden costs: in transport, in assuring local food security, etc. Policies should treat domestic demand and in particular food security (either by farmers producing food for themselves, or by selling produce for cash they can use to buy food) as equally important to the visible trade balance.
Debt: The Green Revolution raised India’s grain output significantly, but a vast number of small-scale farmers ran into a debt trap: they took out loans to raise their production, then found they could not pay the money back. About 40,000 were so desperate that they committed suicide.
Risk: Concentrating on specific commodities seems to promise high economic returns. But market production implies certain risks: markets change quickly, and international agricultural prices are dropping. Cheap foreign food may sweep into the national market, leaving Indian farmers without a market. As a World Trade Organization signatory, the Indian government is under pressure to deregulate and open its economy to the world market, so cannot protect its farmers behind tariff walls.
Niche markets: Organic agriculture is one of the strongest ways to farm in an environmentally sustainable way. The demand for certified organic products is increasing quickly, opening opportunities to expand sales of such products and to explore niche markets.
Employment Farming is the main source of employment for rural people. Trends towards specialization and mechanization may increase narrowly measured "efficiency", but they reduce employment on the land. The welfare costs of unemployment must be taken into account when designing national agricultural support programmes. Sustainable agriculture, with its emphasis on small-scale, labour-intensive activities, helps overcome these problems.
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