REVITALISING ASSAM’S RURAL ECONOMY

The economy has evolved from nature-based traditional systems to modern human-centric mechanisms.

  • Despite advancements, the core human aspiration for a healthy and long life remains unchanged.
  • Economic activities, particularly occupations and lifestyles, directly influence the environment and quality of life.

Role of Agriculture in Rural Economy

  • Agriculture is traditionally sustainable and remains crucial for rural revival.
  • It ensures food security and provides raw materials and employment
  • The sector can offer white-collar jobs through allied activities and value-addition processes.

Current Challenges in Assam’s Rural Economy

  • Poor market access and pricing: Farmers often don’t understand MSP, are exploited by middlemen.
  • Low demand for local produce like paddy and vegetables.
  • Cost of production not recovered, leading to disinterest in farming.
  • Agricultural land abandonment or conversion for activities like fish farming.
  • Overdependence on free rice schemes reduces incentive to produce.

Issues in Agricultural Infrastructure

  • Lack of cold storage facilities, leading to post-harvest losses.
  • Poor irrigation infrastructure and insufficient marketing systems.
  • Inadequate flood control and limited access to credit (e.g. interest-free loans).

Government Intervention: The Way Forward

  • Procurement and redistribution of local produce (paddy, vegetables, fruits).
  • Cold storage development at village panchayat level.
  • Use of MGNREGA to revive irrigation channels and water bodies.
  • Promotion of organic farming, contract farming, community/public farming, and crop insurance.
  • Support for green industrialisation and agricultural education to generate rural employment.

Strategic Recommendations

  • Import substitution: Reduce reliance on external supply of vegetables, fruits, and other agri-products.
  • Export promotion of niche, eco-friendly local products.
  • Embrace Ricardian Comparative Advantage: Focus on a few specialised agri-products for efficient production and export.
  • Re-evaluation of agri-based industries (heavy, medium, and small-scale) for economic diversification.

Agricultural revitalisation is vital for inclusive development. A balance between sustainability and modernisation in agriculture is needed. Assam should lead by example in promoting green, self-reliant, and export-oriented rural economy.

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