Crop Diversification Program

Policy Update
Khushi

Introduction

Indian agriculture has long been centered around a few staple crops, primarily rice and wheat. While this heavy focus was very helpful after the Green Revolution in ensuring food security, with time it has also created many problems such as overuse of groundwater, soil exhaustion, and limited income growth for farmers. To overcome these challenges, the Government of India launched the Crop Diversification Program, often referred to as CDP. The aim of this program is to encourage farmers to move away from water intensive crops towards pulses, oilseeds, maize and horticultural crops, which are not only more sustainable but also more profitable in the long run.

Background

The Crop Diversification Program was started during the 12th Five Year Plan in 2013–14 as a sub scheme under Rashtriya Krishi Vikas Yojana. It was mainly targeted in states such as Punjab, Haryana and Western Uttar Pradesh, where the rice wheat system had become too dominant and was causing serious ecological issues.

The policy makers were concerned if that if the same cycle continued, the environment would not be able to support agriculture in future years. So CDP was thought of as a way to encourage farmers to take up new crops such as pulses and oilseeds, which improve soil health, use less water, and also give farmers new sources of income. Over the years, the program has tried to go beyond just awareness and include aspects of market linkages, infrastructure creation and farmer support systems.

Functioning of the Program

The functioning of CDP can be explained in different steps. Farmers are first made aware about the benefits of diversification through field demonstrations, training programs and awareness campaigns. Then they are provided with some financial assistance in the form of subsidies on seeds, machines and plant protection measures. Another important part of the program is creating infrastructure such as storage houses, cold chains and food processing units so that perishable crops like vegetables and fruits do not go to waste. States are asked to implement the scheme according to their own cropping patterns, since conditions vary across regions. Efforts are also made to link farmers with markets and industries so that they get good prices for alternative crops.

Impact of the Program

The impact of CDP so far has been somewhat mixed, but there are clear positives. In Punjab and Haryana, there has been a slow but visible shift away from paddy towards crops like maize and pulses. Farmers who have diversified into vegetables and fruits have reported higher profits compared to rice and wheat. Water saving has been one of the major achievements, since maize and pulses need much less irrigation than paddy. Soil health too has seen improvement wherever legumes are grown, as they fix nitrogen naturally. Diversification has also helped in improving nutrition security by promoting protein rich pulses and oilseeds. However, the pace of change is slower than what was hoped initially.

Emerging Issues and Challenges

When we look at how the program works in reality, it is clear that things are not as simple as they appear in reports. Most farmers still hold on to rice and wheat because these crops feel safe — they know the government will buy them at MSP, and that assurance itself gives peace of mind.

Way Forward

If crop diversification has to really work, the approach has to feel practical and farmer friendly. The most important thing is to give farmers confidence that they will not be left stranded after moving away from paddy or wheat. Expanding MSP and procurement to include pulses, oilseeds or maize could be one strong step in this direction. Side by side, rural infrastructure has to be built up – more godowns, more cold storages, more small processing units in villages so that crops do not rot before reaching the market.

Awareness also matters, but not in the form of just one meeting or pamphlet; farmers need to see clear examples in their neighborhood of someone actually earning better from diversification. That will convince them more than any slogan. Each state should design its own plan according to its land and water situation, rather than blindly following a national template. And finally, farmer producer groups and local cooperatives must be encouraged so that small farmers can come together and bargain better with big markets. In short, CDP needs to move beyond being just a government scheme and become something that farmers themselves start believing in as a path to secure their future

References

Business Standard. (2016, August 5). Focus on crop diversification and allied activities. https://www.business-standard.com/article/government-press-release/focus-on-crop-diversification-and-allied-activities-116080501755_1.html

Journals of India. (2021, October 25). Crop Diversification Programme (CDP). https://journalsofindia.com/crop-diversification-programme-cdp/

AgriTimes. (2022, March 24). Promotion of crop diversification by government. https://agritimes.co.in/crops/promotion-of-crop-diversification-by-government

InsightsIAS. (2024, April 6). Crop diversification in India. https://www.insightsonindia.com/2024/04/06/crop-diversification-in-india/

About the Contributor: Khushi is currently pursuing her third year of B.A. (Hons.) in Economics from Panjab University, Chandigarh. She is affiliated with IMPRI as a Research Intern, with a keen interest in public policy, education, and development economics.

Acknowledgment
The author extends sincere gratitude to Ms. Aasthaba Jadeja for her invaluable guidance and mentorship throughout the research process.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.