Horticulture push: Diversification can lift farm incomes, living standards

The debate on India’s agricultural future has shifted from staples to high-value crops that can better sustain incomes and nutrition. A research article in the latest Reserve Bank of India Bulletin has underscored that horticulture has emerged as a powerful way for growth. Small and marginal farmers, who dominate Indian agriculture, are steadily reallocating land from cereals to horticulture. At the same time, demand for fruit and vegetables is rising, reflecting changes in dietary patterns, income levels, and health awareness. India is the world’s largest producer of fruit and vegetables after China. Horticulture offers higher-value realisation per hectare than most cereals, which makes it a viable pathway for increasing farm incomes. Besides, its labour intensity generates more rural employment. 

However, the diversification is not smooth. The study shows that yields in several fruit crops, such as grapes and sapota, either stagnated or showed declining trends between 1992-93 and 2021-22. Climate variability further compounds risks, as seen in unseasonal rain, which damages perishable crops. Here innovation will matter. Better agriculture advisories, weather-prediction tools, and new intercropping techniques developed by institutions such as the Consortium of International Agricultural Research Centres can help stabilise yields and reduce input costs. Greater public investment in research and extension services is essential if horticulture is to achieve scale. But even when productivity is assured, market volatility remains a stumbling block. The familiar boom-bust cycles of tomatoes, onions, and potatoes periodically disrupt both consumers and farmers. Strengthening farmer-producer organisations (FPOs) and expanding digital platforms for transparent price discovery could soften this volatility. Storage, aggregation, and collective bargaining are vital to protect small farmers from distress sales. Contract farming arrangements, if made fair and enforceable, can also help provide price assurance. 

The other issue is post-harvest management. An estimated ₹1.5 trillion worth of output is lost each year due to food wastage and supply-chain inefficiencies. Better cold chains, refrigerated transport, and agro-processing facilities are needed to prolong shelf life and create market channels. The World Resources Institute’s “Target-Measure-Act” framework for systematically reducing food loss and waste offers a model to help reduce losses. Global trade adds another layer of complexity. India’s horticultural exports face risks from protectionist policies, such as recent American tariffs. A prudent strategy will be to diversify export destinations to West Asia, Africa, and Southeast Asia while simultaneously upgrading food safety and quality. Promoting Indian fruit and vegetables with Geographical Indication (GI) tags, and marketing them like Alphonso mangoes or Nagpur oranges can help build premium value in domestic and international markets, thereby attracting higher prices and improving competitiveness. 

If India can align technology adoption, efficient market integration, and supportive policies, horticulture has the potential to become the durable engine of farm growth. Nevertheless, diversification is not a substitute for staples but a complementary strategy that enhances resilience, generates jobs, and boosts nutrition. For a sector employing nearly half the workforce, horticulture can help improve incomes and living standards.