Monopolistic Competition Case Summary
1. According to this report, what factors are necessary to enable small farmers prosperity?
Answer -The report “How does small farmers become prosperous?” presents some observations and questions that emerged from the case studies of small prosperous farmers. It mainly presents the following as the necessary factors to enable prosperity of small farmers.
* Knowledge creation among small farming community regarding new practices, markets, capital, effective resource use (land and labor)
*Access to irrigation and use of water control measures.
*Intensification of land by practicing Intensive farming.
* Shifting from food crops to high value cash crops and allied commodities like milk, eggs, fish, or meat produced for market.
* Diversification
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Credit is directly linked with the risk in farming and is considered as one of the limiting factor to grow high value crop, create irrigation facility and crop management. Since farmers are facing problem in accessing credit, Government should bring effective policy and programs to support the credit availability to the farmers at very low interest rate and at ease.
*Access to proper markets and competitive price for the produce. Government should plan and bring effective policy to address the problems of markets by developing good infrastructure, knowledge regarding the market happenings, reducing the hold of commission agents in the channel, providing maximum and scientific support price to the crop produce.
*Programs to reduce risk. Government should concentrate on bringing of suitable policy/program to address the risk through introduction and implementation of effective crop insurance scheme.
*Government should focus on creation of effective extension program to reach technology, knowledge, methods and success stories of farmers to more and more farmers in the country.
* All government policies must address towards ensuring that the Indian farmer is enabled to become an entrepreneur thus empowering him and making farming profitable and farmers
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