How did Gujarat Become a Farming Paradise?

The onset of summer in the Saurashtra region of Gujarat can be a frightening prospect. The rocky terrain of low hills and the semi-arid plains begin to radiate immense heat. Rivers and wells dry up in tandem. Water shortage looms large and the memory of the severe drought of 1999-2000 returns to haunt. God bless the man who tries to indulge in cultivation of crops in these parts.

But that's exactly what hundreds of farmers do several times a year in the heart of this unfriendly terrain. Wheat, cotton, banana, papaya, sugarcane, tomatoes and a variety of other crops sprout all over, erasing forever the cliché of Saurashtra being a parched expanse.

Today, one can spot crops that weren't grown in these parts just four or five years ago. In Adtala village, farmer Vallabhai Patel, who was previously cultivating cotton, grows papayas. With a limited supply of water, he got plentiful yield.

In Sarangpur, also in Saurashtra, Swami Arunibhagat is surely a God-blessed man. A leader of the liberal religious group, Swaminarayan Movement, he has converted 175 acres of dry land into a lush haven for sugarcane, tomatoes and genetically modified cotton. He has achieved record yields that have attracted farmers from more fertile lands to come and learn how he did it. It almost looks like a miracle wrought by Lord Hanuman of the famous temple in Sarangpur.

The swamiji is not alone. The entire region of Saurashtra, along with neighbouring Kutch, a half-desert, half-salty marsh region, has become the engine of a farming revolution in Gujarat, propelling the state into one of the fastest growing agricultural economies in the country. Gujarat's agriculture has grown 9.6% per year in the last decade or so, surpassing the national growth rate of 2.9% and boosting rural incomes.

Agriculture in India has been condemned to an annual growth of 4% or less ever since the nation's economic reforms pushed it towards a service-oriented economy. The share of agriculture in India's gross domestic product (GDP) has fallen to just 16.6% from 46.3% about six decades ago. Somewhere, policymakers seemed to have ignored the importance of farming to the economy. But Gujarat hasn't allowed its keenness to promote industry overshadow its farming sector.

"Although widely lauded for adopting an aggressive industrial policy that has made Gujarat a much-favoured destination for investment, the Bharatiya Janata Party (BJP) has actually devoted a great deal of energy and resources to accelerating agricultural growth in the state through a broad spectrum of policy initiatives," say agricultural scientist Ashok Gulati and four others in an article published by the Economic and Political Weekly.

Studying the various points of attack that the state has used to revive agriculture could thus unveil important lessons for the whole country. After all, if the water-starved Saurashtra and Kutch could do it, why not the rest of India?

Fertile Policies
At first glance, the agricultural miracle in Gujarat seems to have been supported by factors such as good monsoon for most of the decade, increasing minimum support prices from the Centre and the spread of BT cotton, a lucrative cash crop. But all these benefits were available to other parts of the country as well and the superlative performance of Gujarat is not explained by them.

Gujarat was early to amend the laws governing the marketing of agricultural produce and allow farmers to sell their output directly to private buyers. Even today, many states haven't done so and keep the farmer tied to the official procurement hubs. Some have gone back on reforms. But Gujarat has persisted with opening up market access to farmers.

This also opened up contract farming. In 2004-05, Gujarat took an unusual step. It allowed companies to buy crops from farmers a year in advance. This helped the farmers hedge against price upheavals and guaranteed a minimum price. What's more, there is also some flexibility to allow higher payments if prices rose at the time of transaction. While it reduced market risks for the farmer, it also encouraged companies to invest in farming indirectly.