What is commercialization of agriculture

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Agricultural commercialisation occurs when agricultural enterprises and/or the agricultural sector as a whole rely increasingly on the market for the sale of produce and for the acquisition of production inputs, including labour.

The GoN [2] defines agricultural commercialization as “the transformation from subsistence production (production for own consumption), to production for sale of surplus products and services.” However, the concept of commercialization is not limited to selling surplus products in markets.

Full
Answer

What is meant by commercialization of Agriculture?

  • The ideation phase
  • The business process stage
  • The stakeholder stage

What do you mean by commercialization of Agriculture?

Commercialisation of agriculture is a phe­nomenon where agriculture is governed by commer­cial consideration i.e. certain specialised crops began to be grown not for consumption in village but for sale in national and even in international market. Commercialization of agriculture in India began during the British rule.

What does commercialisation of agriculture mean?

Meaning of Commercialization of Agriculture By commercialization of agriculture we mean production of agricultural crops for sale in the market, rather than for family consumption.

What are the features of commercial agriculture?

What are the characteristics of subsistence and commercial agriculture?

  • It is mostly practiced by peasant farmers.
  • It involves a small area of land.
  • It involves the use of local tools eg hoe, cutlass etc.
  • There is no specialization.
  • It employs unskilled labour.
  • The harvest returns are small.
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What do mean by commercialization of agriculture?

Commercialisation of agriculture is a phenomenon where agriculture is governed by commercial consideration i.e. certain specialised crops began to be grown not for consumption in village but for sale in national and even in international market. Commercialization of agriculture in India began during the British rule.


What is Commercialisation of agriculture Class 10?

Commercialisation of agriculture : Commercialisation of agriculture means producing crops for sale in the market rather than for self consumption.


What is commercialization of agriculture in Nepal?

The Project for Agriculture Commercialization and Trade (PACT) has been serving farmers and entrepreneurs in Nepal to build viable agribusinesses by helping them find new market opportunities, determine market demands and build strategic linkages to increase productivity and quality.


Why is commercialization of agriculture important?

By exploiting comparative advantages, agricultural commercialization enhances trade and efficiency, leading to economic growth and welfare improvement at the national level.


What is commercialization of agriculture Class 12?

The commercialization of agriculture means that the agricultural crops and goods are produced by the peasants for sale in the market and not for their own consumption.


How do you commercialize agriculture?

Some ways of commercial agriculture:Facility of loan if firstly important part during commercial farming.Training on agriculture base education to farmers.Need of storage house.Facilities like irrigation, technology.Feeling of development to improve skill development of people.Organization of business fairs, etc.


Why is commercialization of agriculture important in Nepal?

Hence, agricultural sector is key in issues of economic growth, poverty alleviation, better living standard of the Nepalese people and overall Human Development. In this context, Commercialization of agriculture has been proposed as a feasible option for economic growth and poverty alleviation.


What is modernization and commercialization of agriculture?

The process of modernization of agriculture involves the changing of the the agricultural sector through dynamic, technologically advanced, and competitive measures. These measures are centered on human resource development for the betterment of agriculture.


What is modernization and commercialization in agriculture in Nepal?

Modernization of agriculture refers to the use of modern technology and increasing the production. Using improved seeds and chemical fertilizer, facilities of Irrigation, technology, markets refers to the modernization of agriculture.


What are the benefits of commercial farming?

Advantages of Commercial FarmingEncouraging Improvement in Local Infrastructure. … Job Creation. … Lowering the Price of Products. … Increased Production and Enhancing Food Security. … Provision of Raw Materials for Agribusiness Manufacturing Companies. … Lowering the Cost of Production. … Foreign Exchange earner.


What are the measures of agricultural commercialization?

Diversifying agricultural commodities, re-introducing pest-resilient traditional crops and native livestock, increasing market value of traditional crops, complying with safety regulations while promoting commercialization and intensification, and employing trained agro vets are some ways to achieve the goal.


What is agricultural commercialization?

Agricultural commercialisation occurs when agricultural enterprises and/or the agricultural sector as a whole rely increasingly on the market for the sale of produce and for the acquisition of production inputs, including labour. It is an integral and critical part of the process of structural transformation (see section 1.1), through which a growing economy transitions, over a period of several decades or more:


What is smallholder commercialization?

Early smallholder commercialisation is an incremental process, with some households able to engage increasingly with markets while others (initially the majority) remain in semi-subsistence mode. However, later in the structural transformation process, and particularly once the Lewis turning point has been passed, these dynamics change radically.


What is contract farming?

Contract farming is a system whereby a buyer of an agricultural commodity – usually a processor or exporter – supports smallholder suppliers to increase the quantity and/or quality of their output through provision of pre-harvest services, typically input supply on credit and extension advice. The input credit is recovered through deductions made at the time of purchase and the increased throughput in the processing facility or export contracts justifies the cost of extension provision and the risk entailed in credit supply. The ability to recover loans is central to successful contract farming (Poulton et al. 1998). Thus, there have to be mechanisms to minimise side-buying and side-selling of the contracted crops. Outgrower schemes are essentially contract farming where the processor also operates its own core estate. The ‘outgrowers’, i.e. contracted smallholders, then supply a proportion of the throughput to the processing facility, complementing the output produced on the core estate.


What are the systemic changes associated with smallholder commercialisation?

During the early stages of the structural transformation , the systemic changes associated with smallholder commercialisation are modest. Households in favoured areas and/or with above-average resource endowments may seek to respond to growing market demand for agricultural products, but the majority of smallholder households maintain a pattern of semi-subsistence production that evolves only slowly.


Why is a movement of labour out of semi-subsistence agriculture inevitable?

This is because a preponderance of labour in rural areas restricts the average size of farm holding, and a smallholder farm of 1–2 hectares simply cannot generate medium, let alone high, incomes for the members of the smallholder farm household. To the extent that governments are willing to subsidise smallholder farm incomes through public transfers, then some smallholdings can remain. Some continue to exist as part-time or ‘hobby’ farms. However, as both contributor to and consequence of rising average incomes in an economy, many poor people leave rural areas and their agriculture-related livelihoods to seek employment in urban areas. Once the Lewis turning point has been passed, this permits consolidation of landholdings and rising incomes per person for those who remain in agriculture.


Abstract

The first in our series of APRA briefs gives an overview of ‘agricultural commercialisation’ — it gives a brief analysis of the various players and stakeholders involved, and situates the broader concept of agricultural commercialisation within a specifically African context.


Citation

Poulton, C, (2018) What is Agricultural Commercialisation: Who Benefits and how do we Measure it? APRA Brief 1, Future Agricultures Consortium.


Link

APRA Brief 1: What is Agricultural Commercialisation: Who Benefits and how do we Measure it?


What are the factors that affect the commercialization of agriculture?

Some of them could be named as rapid growth of economies in the both developing and developed countries, introducing of new technologies, market expansion, market liberalization, urbanization, rapid increase of demand for food, decreasing of farming population,


What is the extension service in commercialized agriculture?

In the commercialized agriculture the extension service will mainly concentrate on the resourceful big farmers, with favorable environmental conditions and higher socio-economic status. Under the commercialized agriculture the number of farmers is to be reduced and the size of the farm land should be increased.


Can farmers move to commercial agriculture?

We think the answer is “no”. By using improved technologies farmers can move towards commercial agriculture without considering the size of land. Under protected agriculture, farmers follow concepts of the commercial agriculture. Commercial livestock farming does not rely on the farm size except diary farming.


Does commercial livestock farming depend on the size of the farm?

Commercial livestock farming does not rely on the farm size except diary farming. However, the role of agricultural extension in the commercialized agricultural system is mainly dependent on the type and way of commercialization in a given society.


Is commercialization a new phenomenon?

However, commercialization in agriculture is not a new phenomenon and it is not a surprise to the farming community. Since the nineteen fifties, farmers in most of the countries have moved towards commercial agriculture. Their major objective was surplus production aiming market prospects. Agricultural extension plays a major role in agricultural …


What is the change in Indian agriculture called?

This change in Indian agriculture is called the commercialisation of Agriculture.


How did the commercial revolution affect Indian society?

The commercial Revolution had a far reaching impact on the socio-economic structure of the Indian rural society. It brought a severe break with the past for it remained no longer necessary for a village or even a whole region to be self- sufficient in food-grains and other necessaries of life.


What was the agricultural industry in Deccan?

The irrigated areas in Deccan took to the cultivation sugar-cane; cotton growing became localised in Berar, Jute in Bengal and wheat in the canal colonies of the Punjab. The commercialisation of agriculture, was brought about by a series of develop­ments which took place in the second half of the 19th Century.


What was the value of India’s exports in 1859-60?

In 1859-60, the total value of India’s exports amounted to Rs. 29 crores; it rose to rupees 69 crores in 1879-80 and Rs. 166 crores in 1906-7. Wheat was mostly Exported to the U.K. Rice, however, was sent to every part of the world such as Ceylon, East Africa, West Indies and South America.


What was grain used for in the village?

Instead, grain was the standard of value which was used by the villagers for remunerating services or for effecting exchanges with each other.


Why did cash crops grow so quickly?

A basic reason for the rapid growth in the cultivation of cash crops was the fact that such a development was welcome to the British authorities in India. In the first place, the commercial interests of the company were vitally linked up with the export of indigo , tea, coffee, hides and skins and opium.


What was the purpose of the new land system?

The new land system, which the British had erected in the country between 1793-1850, enabled the land holders to take a more than substantial share of the produce of the soil. The portion remaining to the tenants and crop-shares was so small as to leave them with no capital for land improvements.

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