Model Answer
0 min readIntroduction
Indian agriculture often presents a paradoxical situation characterized by "pre-harvest scarcity and post-harvest glut." This refers to a recurring cycle where agricultural produce is scarce and expensive just before a new harvest, only to become excessively abundant and cheap immediately after harvest. This volatility significantly impacts both farmer incomes and consumer prices, undermining food security and economic stability in the agrarian economy. Understanding this dichotomy is crucial for effective agricultural policy formulation.
Understanding Pre-harvest Scarcity and Post-harvest Glut
Pre-harvest scarcity refers to a period of limited availability and high prices of agricultural commodities in the market, typically occurring in the months leading up to the new harvest. This is when the previous season's stocks are depleted. For example, onion and tomato prices often soar significantly before their respective harvest seasons, sometimes reaching 2x to 5x their normal prices. Similarly, cereal prices might rise as old stocks diminish.
Conversely, post-harvest glut describes a situation of oversupply and sharply falling prices immediately following the harvest season. Farmers rush to sell their produce due to its perishable nature and lack of storage, flooding the markets. This often leads to distress sales, where farmers are forced to sell their produce at prices far below their cost of production. A classic example is the sharp decline in prices of onions in Maharashtra (Nashik region) or potatoes and tomatoes in Andhra Pradesh and Madhya Pradesh immediately after harvest, sometimes dropping to as low as ₹2-5 per kg.
Valid Reasons Behind Such Situation in India
Two primary reasons contribute to this situation in the Indian context:
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Inadequate Post-harvest Infrastructure:
India severely lacks sufficient cold storage facilities, modern warehouses, and efficient transportation (like reefer trucks). A significant portion of fruits, vegetables, and other perishables spoils due to improper storage and transit. A NABCONS study (2020-22) highlighted substantial post-harvest losses, with fruits seeing 6.02-15.05% loss and vegetables 4.87-11.61%. Without proper storage, farmers are compelled to sell their entire produce immediately after harvest, regardless of market prices, leading to a glut. This lack of infrastructure also prevents farmers from holding onto their produce to release it gradually, which could stabilize prices.
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Market Inefficiencies and Fragmented Supply Chains:
Indian agricultural markets often suffer from poor integration, lack of transparent pricing mechanisms, and dominance of middlemen. Farmers frequently lack direct access to organized markets or processing units, making them vulnerable to exploitative practices. The absence of robust market intelligence and poor transport linkages means that surplus produce in one region cannot be efficiently moved to deficit regions. This leads to localized gluts in producing areas and scarcity in consuming areas, perpetuating price volatility. For instance, less than 10% of India's fruits and vegetables are processed, compared to 60-70% in developed nations, further exacerbating the glut problem.
Conclusion
The cycle of pre-harvest scarcity and post-harvest glut is a critical challenge in Indian agriculture, stemming largely from systemic deficiencies in post-harvest infrastructure and market mechanisms. This dual problem not only causes immense financial losses for farmers, pushing them into debt, but also leads to food wastage and inflated consumer prices. Addressing these issues requires comprehensive policy interventions focusing on developing integrated cold chains, improving market linkages, promoting food processing, and strengthening Farmer Producer Organizations (FPOs) to ensure stable incomes for farmers and consistent food availability for consumers.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.