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Economics

Bumper Production
Boon Or Bane For
Farmers

-J.M.Ashvika
XII D
1. Bumper Production
2. OBJECTIVES OF BUMPER PRODUCTION
3. BUMPER PRODUCTION IS A Boon or Bane FOR
FARMERS Page | 2

4. Bumper production graph

5. BUMPER PRODUCTION CRISIS
6. STAKEHOLDERS OF THE BUMPER PRODUCTION
7. EMPLOYEES
8. FARMER
9. CONSUMER SEGMENT
10. INVESTOR
11. WHAT ARE THE EFFECTS ON VARIOUS
STAKEHOLDERS OF THE BUMPER PRODUCTION
12. BUMPER PRODUCTION ADVANTAGES
13. BUMPER PRODUCTION DISADVANTAGES
14. SOMETIMES BUMPER PRODUCTION IS TO MUCH A
GOOD THING
15. PROBLEMS FACED BY FARMERS DUE TO BUMPER
PRODUCTION
16. BUMPER PRODUCTION IN INDIA
17. WARNING FROM RESERVE BANK OF INDIA (Jun 09,
2017)
18. CONCLUSION
BUMPER PRODUCTION:
The term bumper crop has been used for generations to refer to an ample crop
yield. It is also used to denote a lack of storage space such as in a barn, silo, or
grain bin. Page | 3

In agriculture, a bumper crop is a large crop of agricultural produce that has

been produced under optimal, yet rare, conditions, such as abundant rainfall, a
mild spring, an unseasonably long summer, an unexplainable lack of pest
infections, or a mild, frost-free autumn.

The word ‘bumper’ on its own has a lesser known meaning. Bumper is often
used when referring to something that is unusually large.

OBJECTIVES OF BUMPER PRODUCTION :

 MSP is a price fixed by government of india to protect the farmers
against excessive falls in prices during bumper production , years the
major objectives are to support the farmers from distress sales and to
produce food grains for public distribution , MSP is the minimum
support price at which the government guarantees the farmers to
purchase the crop no matter what the price the MSP is announced at the
beggining of the agriculture .
 The MSP is now applicable on 23 farm commodities: 7 cereals (paddy,
wheat, maize, bajra, jowar, ragi and barley), 5 pulses (chena, arhar,
 moong, urad and masur), 7 oilseeds (groundnut, soyabean, rapeseed-
mustard, sesamum, sunflower, nigerseed and safflower) and 4
commercial crops (sugarcane, cotton, copra and raw jute).

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BUMPER PRODUCTION IS A Boon or Bane FOR FARMERS

IT IS A BOON FOR FARMERS
 A bumper crop is more of a boon than a bane to farmers.

 a bumper crop is a boon to the farmers or a blessing.

 It can be either, but, depending on the market situations and the

business opportunity in certain cases.

 They grow more increase the income from sales when farmers have a
bumper crop. Even so, this depends on demand availability,
transportation availability and/or storage facility availability.

 When the goods of farmers reach the market in a timely manner, they
are more likely to earn more returns, and it becomes a major success.
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A BUMPER CROP IS NOT A BOON

 Trade in the farming sector happens mainly in cash.

 Given the cash shortage, farmers are forced to either accept the
scrapped notes or sell the produce on credit without any
documentation.

 The first few days after demonetisation were particularly bad.

Vegetables were sold at throwaway prices as cash-strapped traders
stayed away.

 With bumper harvests, farmers are forced to sell the stocks to

middlemen for a pittance or let them go to waste

Bumper production graph :

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BUMPER PRODUCTION CRISIS

 in the wholesale market, speculators can save farmers from similar price
fluctuations by paying a competitive price for their produce even when
there is abundant supply. Grain traders, to return to our previous
example, who want to hoard supply expecting higher grain prices in the
future would be willing to pay a better price to farmers today. This
comes not out of compassion for farmers, but purely out of competition
with other grain traders. When farmers are free to sell their produce to
any trader they want, it is traders paying the best price who get hold of
it. Farmers can also expect a more predictable price for their produce
each season, reflecting stable consumer prices, thus preventing mindless
cultivation.
 Such competition though is precisely what is missing from the Indian
agricultural scene where the supply chain is broken. Red tape, including
limits on stocking agricultural products, has prevented the growth of a
robust market for commodity speculation. The result is lack of
 investment in infrastructure like that of cold storage; about 40% of
agricultural produce in India is wasted because of it. This, in turn, has led
to price fluctuations that have affected both the farmer and the
consumer. Wholesale agricultural prices are determined by trader
cartels that block competitive bidding. This significantly reduces the Page | 8
price farmers can get for their products, while boosting the profits of
some privileged traders. By some estimates, farmers receive only 20-
25% of what the final consumer pays for his product. Thus, a free market
in agriculture can be the best antidote to the crisis facing Indian farmers

STAKEHOLDERS OF THE BUMPER PRODUCTION:

 Employees
 Farmers
 Investor
 Consumer segment
EMPLOYEES:
Stake: Employment income and safety
Employment have a direct stake in the company in that they earn a
income to support themselves along with other benefits . (Both monetary
and non monetary )
Agriculture marketing in india involves two major stakeholders. On one
end it’s the farmers and on another the consumers may include end
consumer, processer , retailer and some how the expertor .
Intermediaries and the other entities in the chain enable movements of
goods and carry out other supportive activities

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FARMER:
Farmers in the existing chain mainly suffer issues like a minor lot of
individual nature for sale , poor knowledge of market requirements and
mainly the inadequate ability of post harvesting infrastructure along with
financing issues. It finally leads to low realisation which makes farmers suffer a
lot. Additionally, the fragmentation of market reduces competition and
exposes the farmer to a cartel like situation with agricultural produce
marketing committees. This normally results in low prices to farmers under
heavy burden results in taking desperate measures by farmers like suicide.

CONSUMER SEGMENT:
It is of diverse nature and may include retailers, traders, individuals and
sometimes exporters while specific rules may vary for all, a few generalised
issues may remain the same. For instance, entire consumer class for an
uncertain supply, uncertain quantity and logistical issue when the dealing
directly with the farmer that are small growers but maybe in large numbers. It
may lead to high cost of purchase due to intermediaries and inefficient logistic
infrastructure. It would do well for the buyers or consumers to work MERE
closely with the farmers, so that the farmer may get the right prices and buyers
may get the right prices and buyers may get the right quantity of products.
Direct in fraction also opens up multiple ways to tackle situations are seeing
out of low production and other issues.

INVESTOR:
Stake: Financial returns investors include both stake holders and debt holders.
Shareholders invest capital in the business and expect to return and Yana
certain rate of return on that invested capital.

WHAT ARE THE EFFECTS ON VARIOUS STAKEHOLDERS OF

THE BUMPER PRODUCTION:
  Agricultural marketing in India involves two major stakeholders, on one
end, it’s the farmers and on another, the consumers.
 Consumers may include end consumer, processor, retailer and somehow
the exporter. Intermediaries and the other entities in the chain enable
movement of goods and carry out other supportive activities. Page | 10
 the main reason of buyers remain dependent on middlemen. They add
more cost and add a little value which ultimately raises the price.
 The complexity of agricultural land use and food production systems also
means that many different organisations have commercial or regulatory
interests in farming and its possible health effects. All these need to be
considered as potential participants in the assessment.

BUMPER PRODUCTION ADVANTAGES :

 bumper crop production is a symbol of productive harvest
 bumper production is associated with wealth as the farmers earns a lot
of profit
 bumper crop not only benefits the farmers but the consumers are also
benefited as the crop is available in plenty
 also the price of the crop reduces due to the increased availability of the
crop

BUMPER PRODUCTION DISADVANTAGES:

 problems related to insufficient storage place
  problems of being infected by rats insects like cockroaches pets tick
mites etc
 problems of crops being destroyed due to problem in transformation
 problem of crops being destroyed by disasters like flood rain and etc .
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SOMETIMES BUMPER PRODUCTION IS TO MUCH A GOOD

THING:
 The first architects of agricultural subsidies aimed to bail out farmers
during bad harvests so that they would not abandon the vital task of
producing food for the nation.

 But these days, not only are farmers overcoming droughts and floods,
agricultural technologies are ushering them into an era of surging
production that is likely to outstrip global demand for years to come.

 This season's parched-earth conditions were supposed to spell doom

here for the Illinois corn crop. Instead, the country's second-biggest
corn-growing state harvested 16 percent more per acre than expected,
helping the United States produce its second-largest crop ever.
 The bountiful harvest, much of it likely to end up on world markets, has
only added to a fundamental problem facing the sector: too much
success for its own good. Despite the worst Midwest drought in 17
years, seed technology allowed farmers to continue their relentless
increase in production.
PROBLEMS FACED BY FARMERS DUE TO BUMPER
PRODUCTION:
 Farmers are the worst hit due to the corona virus lock down, unable to
harvest crops and sell the harvested produce in the market. Page | 12

 The dairy farmers of Assam and Karnataka; and vegetable, fruit and
flower growers of Tamilnadu, Maharashtra, Punjab, Haryana and West
Bengal have left their produce rotting in fields or dumped on the
roadside

 The fall in the income or revenue of the farmer as a result of the bumper
crop is due to the fact that with greater supply the prices of the crop
decline drastically and in the context of inelastic demand for them, bring
about fall in the income of the farmers

 An increase in their supply tends to lower their price.

 The lower price does not increase the demand for it as per the law of
demand or a normal price-demand relationship. Thus large harvest
tends to bring low revenue to the farmers.

BUMPER PRODUCTION IN INDIA

For the fifth year in a row India is forecast to produce another wheat bumper crop in the
2021-22 marketing year based on favorable weather, according to a Global Agricultural
Information Network (GAIN) report from the US Department of Agriculture (USDA).

The country is projected to produce 107 million tonnes, a near-record, in the 2020-21
marketing year, just shy of last year’s 107.9-million-tonne wheat harvest.
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GARLIC PRICES HIT ROCK BOTTOM IN MADHYA PRADESH,

FARMERS UP IN ARMS:22 AUG 2022 (TIMES OF INDIA)

Garlic, which has been listed under the 'one crop one district' scheme for
Mandsaur and Ratlam districts is selling in local mandis at the rock bottom
price of Rs 45-50 a quintal leaving farmers in distress.
Farmers of both districts have launched protests over the low price for their
crop and demand minimum support price for garlic, pointing out that it was
included in the BJP-led state government's Bhavantar Bhugtan Scheme' in
2018-19 but was discontinued, leaving farmers at the mercy of the market's
demand-and-supply formula. The crisis has arisen due to bumper production.
Under the Bhavantar scheme if the market price of listed crops was lower than
the government-fixed modal rate, the government paid farmers the difference.
It was meant to cushion farmers from price crashes. According to senior
horticulture officials, the Bhavantar rate for garlic in 2018-19 was Rs
800/quintal. The measly prices for garlic this year are already triggering unrest.
Farmers say it won't even cover their input costs. Angry farmers staged a
protest in Ratlam on Saturday, closed the gates of a Krishi Mandi on Mhow Page | 14
Road.'Fix rates for garlic under Bhavantar at Rs 4 k/quintal * The protesting
farmers stopped the auction as they were enraged at the rates on
offer =- as low as Rs 50-Rs 500 per quintal. Farmers said they have incurred a
costof Rs 2,500 per quintal in production. A similar protest was held at Sailana
busstand where farmers carried out a death procession' of garlic crop.  "We
are being offered prices as low as Rs 45 to Rs 250 per quintal.
We want the state government to fix the price of garlic at Rs 4,000 per quintal
under Bhavantar scheme," one of the agitating farmers said. In Mandsaur,
garlicfarmers had the same demand though here garlic was selling at slightly
betterprices - a minimum Rs100/quintal. Some farmers even received as high
as Rs6,665/quintal for crop of excellent quality (A grade). Mandsaur-based
farmer andnational vice president of BJP-supported Kisan Morcha, Bansilal
Gurjar, said:"There is bumper production of garlic - almost twice the demand
in local andinternational markets - in Dewas, Narmadapuram and some other
districts asfarmers sowed it on a large scale. This is why the rate are as low as
Rs 50-100/quintal." He suggested that proper planning, based on records of
statewide Ragba (areas) of the crop, to estimate itsexpected production and
comparing it with the expected demand would help resolve the issue to a great
extent, Minister of state for horticulture and foodprocessing Bharat Singh
Kushwaha agreed with the advice. "If the demand is 100 quintals while
production is 1,000 quintals, then the rate will naturally go down,"the minister
told TOI, adding that the government has started 'Girdavari (estimated sowing)
of horticulture crops. The government is also giving subsidies on crop storage,
Kushwaha said. he protesting farmers stopped the auction as they were
enraged at the rates on offer - as low as Rs 50-Rs 500 per quintal.Farmers said
they have incurred a cost of Rs 2,500 per quintal in production. A similar
protest was held at Sailana bus stand where farmers carried out a death
procession of garlic crop."We are being offered prices as low as R$ 45 to Rs 250
per quintal. We want the state government to fix the price of garlic at Rs 4,000
per quintal under Bhavantar scheme," one of the agitating farmers said. In
Mandsaur, garlic farmers had the same demand though here garlic was selling
at slightly better prices – a minimum Rs 100/quintal. Some farmers even
received as high as Rs 6,665/quintal for crop of excellent quality (A grade).
Mandsaur-based farmer and national vice president of BJP-supported Kisan
Mocha, Bansilal Gurjar, said: "There is bumper production of garlic - almost
twice the demand in local and international markets -_ in Dewas.
Narmadapuram and some other districts as farmers sowed it on a large scale.
This is why the rate are as low as Rs 50-100/quintal." He suggested that proper
planning, based on records of statewide Ragba (areas) of the crop, to estimate
its expected production and comparing it with the expected demand would Page | 15
help resolve the issue to a great extent. Minister of state for horticulture and
food processing Bharat Singh Kushwaha agreed with the advice. "If the
demand is 100 quintals while production is 1000 quintals, then the rate will
naturally go down. the minister told TOl, adding that the government has
started 'Girdavari (estimated sowing) of horticulture crops. The government is
also giving subsidies on crop storage, Kushwaha said.

WARNING FROM RESERVE BANK OF INDIA (Jun 09, 2017) :

Indian farmers are currently faced with a problem plenty. A bumper crop has
led to procurement prices plunging, pushing them deeper into the depths of
despair. The crisis has been compounded by inept state governments. Onion
growers in Madhya Pradesh have been on the streets for days demanding
better prices for their produce, but the administration failed to respond in
time. It finally woke up after protests turned violent, leaving at least five
farmers dead. the bumper production which ought to have been a boon is
proving to be a bane.
The Reserve Bank of India has already sounded an ominous warning, stating
that the crisis could spread further with the market price of pulses hovering
well below the minimum support price (MSP).
Further, the horticulture sector is not even covered by the MSP system, leaving
a vast majority of farmers vulnerable. The Centre’s price mechanism covers
only 14 of the 51 major crops. It includes staple food items such as wheat, rice
and cereals but not vegetables.
Vegetables are perishable and growing them entails a fair degree of risk. But
recent trends show more farmers growing vegetables, setting off a vicious
cycle of glut followed by falling prices. Last year, farmers in Madhya Pradesh,
Maharashtra, Andhra Pradesh, Uttar Pradesh and Punjab dumped their winter
crops such as potato and tomato on the road. This year, farmers in Rajasthan
and Maharashtra are facing a similar desperate situation.
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CONCLUSION:
A bumper crop is more of a boon than a bane to farmers. It can be either, but,
depending on the market situations and the business opportunity in certain
cases.
In most cases, a bumper crop is a boon to the farmers or a blessing. They grow
more increase the income from sales when farmers have a bumper crop. Even
so, this depends on demand availability, transportation availability and/or
storage facility availability. When the goods of farmers reach the market in a
timely manner, they are more likely to earn more returns, and it becomes a
major success.
Assume if you had a bumper crop but many farmers growing the same crop as
users, that would indicate you are not the only person with plenty. If your
goods reach the stores first or soon enough, the only chance you might be able
to find a great price from the market. Most farmers often do not prepare well
enough and their bumper harvest ends up as a failure caused by lack of storage
and transportation.
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