In 2022-23, fruits and vegetables accounted for 28.3% of the Gross Value Output, surpassing cereals for the first time, and the horticulture sector contributed about 33% to the agriculture GVA.
Factors Influencing the Selection of High-Value Crops by Farmers in India
Policy & Institutional Factors
Government Incentives – Schemes like MIDH, PMKSY, Operation Greens, Mission for Integrated Development of Horticulture.
Export Promotion Policies- APEDA support, agri-export zones, GI tagging
Economic Factors
Higher Profitability- Fruits, spices, floriculture and plantation crops offer greater income per hectare than cereals.
Availability of Credit & Insurance – Eg-
Agro-Climatic Factors
Agro-Climatic Suitability – Eg- grapes in Maharashtra, apples in Himachal.
Availability of Irrigation- Eg- Sugarcane in western UP and Maharashtra
Technological Factors
Availability of HYV Seeds – Eg- GM Seeds, precision farming, tissue culture
Extension services – e-NAM price signals, Krishi Vigyan Kendras guide crop selection.
Storage, Processing, and Value Chains – Eg- Mango pulp processing in Andhra Pradesh
Social Factors
Agriculture Startups – Educated rural youth adopt commercial high-value crops. Eg- Agroponics near Urban Centers
Rising urbanisation and changing diets. Eg- organic food market growing @ CAGR 20%
Environmental & Sustainability Factors
Climate Resilience- Shift towards drought-resistant crops like millets, medicinal plants.
Soil Health Consideration – Crop diversification is adopted to restore nutrient balance and reduce dependency on fertilisers.
Water Efficiency – Crops with lower water requirement and higher value (Eg-, spices, horticulture) are preferred in water-stressed areas.
Shift to high-value crops can be a key driver of doubling farmers’ income and sustainable agriculture.