How much of the crop’s value stays with the farmer?
Raising yield is the part of agricultural policy that receives most attention and delivers the least improvement in household income. A farmer who grows twenty per cent more and receives the same price at the same delay is not better off in any meaningful sense — and in a glut year is worse off.
The value question is different and harder. It is about where in the chain the crop is first weighed, graded, stored, cleaned or processed, and about who owns that step. When the first point of aggregation is a hundred kilometres away, the margin leaves the district with the truck.
- Storage capacity close to the field, particularly cold storage for potato
- Primary grading and processing at block level rather than at the state capital
- Procurement payments made on a published, enforceable timeline
- Producer organisations with enough scale to negotiate rather than accept