The Economics of Crop Choice: Why Indian Farmers Strategically Prefer Rice and Wheat”

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The Economics of Crop Choice: Why Indian Farmers Strategically Prefer Rice and Wheat”

Context: In recent times Farmers continue to prefer rice and wheat as evident in the data from From 2015-16 to 2024-25, rice area in Punjab rose from 29.8 to 32.4 lakh hectares, and in Telangana from 10.5 to 47 lakh hectares. In Madhya Pradesh, wheat area increased from 59.1 to 78.1 lh, and rice from 20.2 to 38.7 lh.

Reasons for Preference of Rice and Wheat

  • Policy Support: The Role of Minimum Support Price (MSP)
    • Assured government procurement at MSP serves as a powerful incentive for farmers to grow rice and wheat.
    • The MSP mechanism provides a near-guaranteed market, reducing price risk significantly.
    • Example:

Holistic Attractiveness of Rice and Wheat

  • Rice and wheat score high on all parameters of crop selection:
    • Price security (via MSP).
    • Yield assurance (through irrigation and breeding support).
    • Technological progress (gene editing, rust resistance, shorter durations).
    • Sustainability improvements (reduced inputs, early-maturing varieties).
  • Together, these factors make these crops economically and operationally superior to alternatives.

 

  • In Punjab, rice acreage increased from 29.8 lakh hectares (lh) in 2015-16 to 32.4 lh in 2024-25.
  • In Madhya Pradesh, wheat area rose from 59.1 lh to 78.1 lh during the same period.
  • In contrast, crops like cotton and soyabean show volatile acreage trends due to the absence of procurement security.
  • Irrigation Advantage: Reducing Yield Risk
    • Both rice and wheat are largely grown in irrigated zones, reducing their dependence on monsoons.
    • Irrigation access allows for consistent production, even in years of climatic variability.
    • Crops without this irrigation backstop (e.g., pulses and oilseeds) remain vulnerable to weather-related yield losses.
  • Breeding Breakthroughs and R&D Focus
    • Wheat: Technological Progress through Successive Varieties
      • Green Revolution introduced semi-dwarf, rust-resistant wheat varieties.
      • Early varieties like Kalyan Sona and Sonalika yielded 3.8 tonnes/hectare on average.
      • Newer varieties like HD-3385 (2023) yield 6 tonnes/hectare on average, and up to 7.3 tonnes under ideal conditions.
      • HD-3385 traits:
        • Resistance to all major rusts: yellow, brown, and black.
        • Flexible sowing window: October to late November.
        • Climate-smart traits: better resilience to temperature spikes in March.
    • Rice: Yield, Duration, and Climate Resilience
      • Traditional varieties yielded 1-3 tonnes/hectare over 160-180 days.
      • Introduction of semi-dwarf rice varieties like IR-8 (1966) and Samba Mahsuri (1986) increased yields and shortened durations to 130 days.
      • ICAR innovations:
        • Kamala (GE mutant of Samba Mahsuri):
          • Uses CRISPR-Cas gene-editing.
          • Produces 450-500 grains per panicle vs. 200-250 earlier.
          • Yields: 5.37 tonnes (average), 9 tonnes (potential).
          • Matures earlier, reducing water and input requirements.
        • Pusa DST Rice 1 (mutant of Cottondora Sannalu):
          • Edited DST gene for drought and salinity tolerance.
          • Enhances abiotic stress resistance.
  • Shorter Maturity Periods and Input Efficiency
    • New rice varieties mature in 120-130 days, compared to traditional durations of 160-180 days.
    • Shorter crop cycles allow for:
      • Water savings.
      • Lower input cost (urea and phosphate).
      • Possibility of multi-cropping.
    • Increased root biomass improves nutrient absorption, enhancing input-use efficiency.
  • Technological Innovations: Direct Seeding in Rice
    • Adoption of Direct Seeding of Rice (DSR) technology:
      • Eliminates the need for nurseries and transplanting.
      • Saves labour and irrigation water.
    • Contributes to sustainability and lowers operational costs.

Conclusion: Towards Crop Diversification with Balanced Support

  • While rice and wheat have rightly benefited from intensive public support, other crops now require comparable investments.
  • To promote agro-ecological balance and reduce monoculture risks, India must:
    • Enhance R&D in pulses and oilseeds.
    • Expand MSP procurement and irrigation access for alternative crops.
    • Encourage climate-resilient technologies beyond just the dominant cereals.
  • A balanced approach will ensure farmer welfare, food security, and sustainable agriculture.
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