Business Opportunities in Agriculture: 150 Field Interviews (Book)

The Dwindling Acreage under Cash Crops in Coimbatore

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Generating Rs.5 lakhs from a 25 cents Plot: Possible or Impossible?

The past few years has witnessed a steady decline in the land coming under cash crop cultivation in Coimbatore. Studies report a sharp two-thirds decline, which can be attributed to several reasons, with labour shortage contributing as a major factor. Smaller farms had disadvantage of mechanization costs being too expensive, resulting in famers owning small bits of land selling them and looking for alternative sources of livelihood.

Statistics from the agricultural department show that over 3 lakh hectares were under cultivation of cash crops like millets, corn, maize, cotton, sugarcane and paddy during the 2000s. This vast agricultural belt has shrunk drastically to around 99,000 acres as recently as 2013-2014. Of the chief cash crops in Coimbatore, millets were grown in over 32,000 hectares spread out in several pockets in the district. Corn used to be cultivated in not less than 80,000 hectares across Coimbatore, with the current area shrinking to a26, 500 hectares.

Cultivation of millets gained popularity again and there was a minor increase in production. This sudden increase in demand can be attributed to several doctors specializing in the treatment of diabetes advising people to reduce the intake of rice and substitute it with the intake of millets. This resulted in an increase of almost 10,000 kg of millets that were grown in the year 2013-2014. Today millets sold in the retail market command a higher price compared to the earlier prices.

Paddy too is an important crop as it is the staple food of Indians, especially South Indians, for whom a meal is never complete without rice. However, paddy cultivation too took a bad beating and the production dropped from 50 tonnes in the year 2000 to a mere 10 tonnes in 2014. Although modern agricultural techniques have helped the farmers to increase yield per hectare, the overall acreage has dropped alarmingly.

Cotton is cultivated as a major cash crop in the Coimbatore region as the predominantly black soil is perfectly suited for cotton cultivation. However, due to various factors, cotton which was cultivated in over 7,800 hectares in the 2000s had been restricted to a mere 375 hectares, which is a drastic drop. So much so, the district’s textile mills are forced to source the primary raw material cotton from the neighbouring states by paying a much higher price.

Under the current agricultural scenario, specifically with regards to cash crops in Coimbatore, a few enterprising businessmen in Coimbatore mulled over the situation and came out with a winning strategy that would change the fate of several people. More importantly, this strategy, though related to cultivation, would benefit a cross-section of investors who know nothing about the nuances of agriculture. They hit upon a brilliant plan of looking for a perfect alternative to the existing cash crops, and after intense research came to the conclusion that dates cultivation in Coimbatore would be the best solution.

One enterprising person amongst the group took the bold step of starting Goldengroves Agro Realty India Pvt Ltd a company pioneering dates cultivation in a region like Coimbatore, which was looked upon doubtfully by several people at first. Eventually, the concept became very popular and there was a rush to buy the 25 cents land on sale at very affordable prices. The investors got a fantastic deal as the planting and growing of dates was taken care of by the company itself. Another major advantage is that the prices of dates are always stable with hardly any fluctuation. Moreover, they had to just invest and wait for the bumper harvest, which was guaranteed by the experts who were in charge of taking care of the farm and were responsible for maintaining the farm till it yielded good quality dates.

Today the vast plots of well-maintained date palms have started yielding fruits. The savings in the transportation cost helps the promoters get better prices for the dates (which are bought back under a buy-back arrangement) on behalf of the investors. Moreover, the farms are actually modern resorts that double up as ideal holiday resorts. The people buying the plots can spend an enjoyable vacation and take advantage of the amenities like the swimming pool, clubhouse and comfortable accommodation that are exclusively meant for the comfort of the investors who chose to put their money in profit generating dates cultivation. Today dates cultivation in Tamil Nadu has been given a new meaning, and has emerged as the perfect cash crop in the Coimbatore region.

Regards,

Goldenfruit.in
(Coimbatore)
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

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