Aamir Hussain
Jammu and Kashmir's economy is based on agriculture. Agriculture plays a significant role in the economic development of J&K. Agriculture provides a living for approximately 70% of the population in J&K. J & K has been categorized into three agro-climatic zones , Cold arid ladakh, temperate Kashmir valley and humidsub-tropical region ofJammu. The average holding size is very small (0.545 hectares per holding), compared to 1.66 hectares at the national level. Rice, maize, wheat, pulses, fodder, oilseeds, potato and barley are the main crops of the union territory. Around the world, there is a shift toward cultivating low-volume, high-value cash crops like flowers, vegetables, quality seeds, aromatic and medicinal plants, mushrooms, and so on. Honey, Bee-keeping,fodder intensification, production of quality saffron,‘Basmati’rice,‘Rajmash’, off-season vegetables, potatoes etc. are also being cultivated in specific areas, belts and clusters depending upon the agro-climatic suitability. J&K is primarily a monocropped, rain-fed state, with about 40% of the land in Jammu and 60% of the land in Kashmir having reliable irrigation. Canal irrigation is used to irrigate the majority of the state's land.Rice,Maize and Wheat are the major crops in the UT. Wheat, oil seeds, and fodder are being introduced as secondary crops in Kashmir. Farmers in Jammu are growing paddy as a side crop. Paddy production in Kashmir Valley is the highest in the country, at about 40 quintals per hectare. Agriculture accounts for 15% of the gross domestic product (GDP).
According to the latest NITI Aayog report, J&K ranks third among all states/UTs in monthly income to agriculture households, with about Rs.12,683/month, and is the fifth best performing Union Territory in agriculture and allied sectors. Megahalaya has the highest monthly income for farmers, around Rs.29000/month, followed by Punjab, which has a monthly income of around Rs.26000/month. Bihar has the lowest average farmer income in the country, at around Rs. 3.980. In Jammu and Kashmir, the horticulture sector employs 27% of the population and contributes 8% of the state's GDP.
Economy in Brief
Agriculture and related activities are the mainstays of the economy in Jammu and Kashmir. Sericulture and cold-water fishing are also popular in the Kashmir valley. Kashmir Willow, a type of wood popularly known as Kashmir Willow, is used to make high-quality cricket bats. Kashmiri saffron is also well-known, bringing in a sizable sum of money for the state. Apples, barley, cherries, corn, millet, oranges, rice, peaches, pears, saffron, sorghum, vegetables, and wheat are among the agricultural exports from Jammu and Kashmir, while handicrafts, rugs, and shawls are among the manufactured exports.
Horticulture is extremely important to the state's economic development. This sector is the state's second largest source of revenue, with an annual turnover of over Rs. 300 crore and foreign exchange earnings of over Rs. 80 crore. Kashmir is the wealthiest region in the UT and is known for its horticulture industry.
High-grade sapphire deposits can be found in the Doda district. The manufacturing and service sectors, particularly in the Jammu division, are rapidly expanding. Several consumer goods companies have opened manufacturing facilities in the region in recent years. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has identified a number of industrial sectors that can help the state attract investment, and it is working with the union and the UT government to establish industrial parks and special economic zones.
Tourism is a significant contributor to Kashmir's economy. Pandemic wreaked havoc on the Kashmir valley's tourism industry. Jammu's holy shrines and Ladakh's Buddhist monasteries, on the other hand, remain popular pilgrimage and tourism destinations. Thousands of Hindu pilgrims visit the holy shrines of Vaishno Devi and Amarnath each year, having a significant economic impact on the state. The Vaishno Devi yatra generates about Rs. 475 crore in revenue for the local economy each year. The UT has become one of India's most popular tourist destinations.
Role of Government in Strengthening Economic Status of People ofJ&K
In order to assist people, farmers, women, and students in raising their standard of living in particular and the overall economy of the nation in general, the Jammu and Kashmir government has launched over 80 new schemes.Rural development, finance, youth affairs, housing and urban affairs, and other ministries all contributed to these plans. Some of the important schemes currently running in J & includePM Kisan Maan DhanYojana , PM Kisan Samman Nidhi, Rashtriya Krishi Vikaas Yojna (RKVY), PMFBY, Farmer Producer Organization(FPOs), Pradhan Mantri Krishi Sinchayee Yojana (PMKSY),Soil Health Card Scheme, National Food Security Mission, Production based incentives to cocoon farmers in South Kashmir. MIDH ( Mission for Integrated Development of Horticulture, Dairy Entrepreneurship Development Scheme (DEDS.) and many more.
On January 30, 2022, the J&K government approved J&K State Agro Industries Development Corporation Ltd's establishment of a 5000 MT Multi Chambered Modern Cold Storage and Ripening Project for storing fresh fruits and vegetables. The project, which will be the first of its kind in Jammu district for cold storage of fresh fruits and vegetables, will be built at a cost of Rs. 2646.73 lac in the next eight months at Talab Tiloo, Jammu. It will reduce post-harvest losses by extending the shelf life of various agriculture/horticulture products, as well as address the problem of farmers selling their crops in distress. In the private sector, around 1.98 LMT of CA Storage has been established, with most of it focusing on a single crop. The upcoming project is a step toward diversifying Jammu division's cold storage facility for a variety of fruits and vegetables.
Under the scheme, subsidised solar-powered agriculture pumps with capacities ranging from 2 to 10 HP would be installed across the country. The Pradhan Mantri Kisan Urja Surakshaevam Utthaan Mahabhiyan is a Mahabhiyan launched by the Pradhan Mantri Kisan Urja Surakshaevam Utthaan Mahab (PM-KUSUM). The scheme will provide a 50 percent subsidy from the central government, a 30 percent subsidy from the Jammu and Kashmir government, and the remaining 20% will be borne by farmers.
After reviewing crop losses caused by recent rains and hailstorms in the Jammu division, the Jammu and Kashmir administration is working on providing a subsidy on seeds and fertilisers for the next crop to assist affected farmers.
The government of Jammu and Kashmir has introduced a new scheme to assist local farmers in flying their produce out of the state at a much lower cost, either within India or abroad. Fruit farmers will receive a 25% subsidy on domestic and international air fares under the scheme, with the administration also setting fixed prices/kg for various fruits to protect farmers from fluctuating costs.
On October 20, 2020, the J&K government launched the Market Intervention Scheme to help stakeholders by providing a valuable marketing platform and ensuring optimum prices for growers. This scheme enabled the purchase of 12 metric tonnes of apples. This not only ensured profit for apple growers, but it also created rural employment through auxiliary services. This scheme not only helped farmers make a profit, but it also helped them avoid distress sales. The MIS for apple procurement in J&K was also extended for 2020-21 by the Union Cabinet. NAFED will purchase apples directly from apple growers through the Directorate of Planning and Marketing, Department of Horticulture, and Jammu and Kashmir Horticulture Processing and Marketing Corporation (JKHPMC), with payment made via Direct Benefit Transfer (DBT).
The government of Jammu and Kashmir launched an air cargo service from Jammu and Srinagar airports to top domestic and international markets on July 8, 2021, for the transportation of perishable horticulture and agriculture produce.
The Horticulture Department's 'PARVAZ scheme' initiated the market linkage support as part of its efforts to ensure good dividends of horticulture produce, which eventually result in socio-economic emancipation of J&K fruit growers and farmers by doubling their income. Agriculture and horticulture perishables harvested in Jammu and Kashmir were shipped to domestic and international destinations via Air Cargo under the 'PARVAZ' market linkage support scheme. Subsidies on Air Cargo charges, including Airport handling charges, shall be provided by the government from time to time in the DBT mode to farmers/FPOs/SHGs and registered intermediaries, in addition to subsidy being paid in the reimbursement mode as per the original invoices/bills of the concerned Airlines in offline mode only. Following that, the support will be paid via online DBT mode by establishing a platform between the Directorate of Horticulture, Jammu and Kashmir, and the relevant airlines. Subject to funding availability, the scheme could be adopted by the Animal, Sheep Husbandry, and Fisheries Departments for milk-based perishables and trout fish.
For shipments of the said products from Srinagar/Jammu to Dubai, Rs 128 per kilogramme, Rs 128 per kilogramme from Srinagar/Jammu to Sharjah, Rs 29 per kilogramme from Srinagar/Jammu to Delhi, Rs 54 per kilogramme from Srinagar/Jammu to Chennai, Rs 52 per kilogramme from Srinagar/Jammu to Kolkatta. Shippingof UT's perishable agriculture and horticulture products from Srinagar/Jammu to Mumbai/Pune will cost Rs 39 per kilogramme, and shipping from Srinagar/Jammu to Bangaluru will cost Rs 55 per kilogramme. All taxes and airport handling fees are included in these rates. With the Parvaz subsidy, the effective per kg air cargo charges for cherry, litchi, strawberry, pear, peach, and plum from Jammu and Srinagar airports to Dubai and Sharjah will be only Rs 96, compared to Rs 21.75 for Delhi, Rs 29.25 for Mumbai, Rs 39 for Kolkatta, 40.5 for Chennai, and 41.25 for Bangluru. During the last year, the policy system in the horticulture and agriculture department has shifted. The focus has shifted from pre-harvest to integrated post-harvest management in order to bring agriculture and horticulture unique products to top domestic and international markets.
The Jammu and Kashmir administration signed a Memorandum of Understanding (MoU) with the Dubai government in October 2021 for the development of real estate, industrial parks, and other business enterprises in the Union Territory, which is a significant step toward developing the industrial sector and other business enterprises in the Union Territory. Real estate development, industrial parks, IT towers, multipurpose towers, logistics, medical college, super specialty hospital, and other topics are covered in the MoU with the Dubai government.
The central government hopes that the MoU will serve as a watershed moment, with investment pouring in from all corners of the globe, ushering in a major development push. Different business entities from Dubai will invest in the newly created UT, boosting the UT's economy and providing a key to the UT's trade and commerce development.
Conclusion
From the current economic situation of the UT, it is clear that the UT's economy is heavily reliant on agriculture and related sectors, while the Union Territory's government is working hard to maintain the UT's economic status through various day-to-day schemes, subsidies, and incentives provided to farmers. Such schemes help the UT's economy because our UT has an advantage over the other union territories and states in the country in terms of resources. The Farmers of the UT are much interested in new government schemes and interventions but at the same time timid and cautious about the future results of the same. So, there is a dire need of public awareness and counselling regarding the benefits of different schemes and interventions and developing a positive attitude among the people in this matter.
Author is M.sc Agricultural Economics Skuast Jammu and can be reached at email:aamirh760@gmail.com