Agriculture

Commercial Farming in India – Features, Characteristics and Advantages

Updated on 09th February, 2024, By Arpit Srivastava
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Commercial Farming in India – Features, Characteristics and Advantages
Commercial farming is a common practice aimed at raising livestock or producing crops and then eventually selling either to businesses or direct to consumers to gain economic benefits. It involves performing agricultural activities on a large scale to ensure maximum output and profits with the optimised use of resources and available land, labour, and water.

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Introduction

Commercial farming or commercial agriculture, as the name suggests, are crops grown for selling in domestic and international markets for earning profit. This type of agriculture in India is practiced on large farmlands. With the modernisation of agriculture, now almost all crops in India are grown sale in the market. In this blog, we will learn about commercial farming in India, its features, characteristics, and advantages.

What is Commercial Farming?

Agricultural farming is also sometimes referred to as commercial agriculture or commercial plantation, depending on the nature of agriculture.

The term "commercial" refers to the fact that farmers are engaged in producing products for sale rather than for personal consumption or subsistence.

On the other hand, the term commercial plantation involves farming on huge land areas primarily devoted to growing cash crops. It majorly involves producing a single crop such as cotton, banana, sugarcane, and cocoa on a large piece of land.

What Farmers Grow as Commercial Crops?

Commercial farming has the largest agricultural economies in the world. Commercial farmers produce a wide variety of crops and livestock products, including grains (rice, wheat), vegetables (tomatoes), fruits (bananas), pulses (lentils) and oilseeds such as rapeseed/canola seed used to make cooking oil; sugarcane grown for sugar production; cotton fibre used to make clothing.

Additionally, farmers also produce milk from cows and buffaloes raised for dairy products like cheese or butterfat; meat from poultry birds raised for meat consumption by humans; eggs laid by laying hens--all these products contribute significantly towards meeting India's food needs.

Commercial Farming in India

Commercial agriculture has been a part of Indian society since ancient times, but it was only during colonial rule that it became widespread across the country. There are various benefits and importance of commercial farming in India.

It has contributed significantly to the Indian economy. The nation has seen an exponential growth in its agricultural industry. From using traditional practices in the past to moving on to using advanced methods such as optimized fertilizer, highly automated machines and using other improved techniques, the nation has ensured that the agricultural yield increases within the limited land.

This active participation has led to increased agricultural yield, which meets the local demand, provides significant exports, and contributes to increasing overall revenue.

Commercial plantation of single crop in large areas is for export purposes. Since the crop is produced with an aim to export, it has also contributed positively to related industries such as logistics, fertiliser, heavy machinery, and transportation.

However, many people believe this contribution will decline as more people move towards urbanisation and away from rural areas.

Involvement of large-scale farming of a single crop has leads to several environmental concerns. A crop requiring a huge amount of water will eventually lead to water scarcity in the nearby region. However, its benefits overtake its disadvantages, thus making it prevalent across the world.

Overall, commercial farming has overall managed to uplift the living standard of farmers and thus directly or indirectly contributed to the agricultural and economic growth of the country.

Features of Commercial Farming in India

There are certain features of commercial farming in India that make it distinct from other farming practices in India. These are listed below:

Different from Subsistence Farming

Commercial farming differs from subsistence farming, where it produces food for commercial purposes rather than for household consumption.  While subsistence farmers may also sell some of their surplus produce, they do not depend upon these sales as a source of income or livelihood.

Large Scale Operation

Commercial farming practices are often associated with large-scale operations that use mechanised equipment and technology. However, this is not always the case – some small-scale farmers also employ modern methods on their farms (e.g., irrigation).

Technology and Mechanisation

Commercial farms often employ advanced technologies such as pesticides and fertilisers to increase crop yields and reduce labour costs; however, these chemicals can have detrimental effects on human health if used improperly.

Irrigation

In many parts of India where rainfall is unreliable or insufficient during certain seasons (eastern states), irrigation systems provide water when needed most, such as during dry spells, and help maximise yields while minimising losses due to drought conditions.

Characteristics of Commercial Farming

Commercial farming is characterised by large scale operation, use of technology, high output, and capital-intensive agriculture, among others. Let us see some of the characteristics below:

  • The main characteristic of commercial farming is that it is performed on a large scale and uses heavy machinery and mechanised system to produce huge quantities.
  • Technology is increasingly used to improve the overall profitability due to improved efficiency.
  • The primary objective is to produce the highest possible food with the limited land and labour at disposal.
  • Commercial farming is among the major contributor to the overall growth of the country's agricultural growth.
  • It is a major source of employment generation in agriculture. The jobs created by commercial farming are not only limited to the agricultural industry but also to related industries such as transportation or logistics.
  • Commercial agriculture is also characterised by reduction in the regular wastage in the industry through optimisation of the process, crop yields, and use of technology and other components.
  • Modern techniques have assisted farmers in growing higher-quality crops, which offer improved nutritional value, textures, and taste.

Advantages of Commercial Farming in India

Commercial farming has various advantages. It allows farmers to have increased productivity and increased profits due to higher yields. It eventually assists them in moving out of poverty and promotes development in rural areas.

Some of the advantages of commercial farming for the farmers are as follows:

  • Farmers get higher market access and increased produce prices. This eventually helps them elevate their standard of living. This also helps them get access to better healthcare, education, and other opportunities.
  • Better quality seeds and fertilisers' regular use leads to higher production of crops, which in turn increases the yield in the limited land, which otherwise would have produced significantly lower.
  • Access to technology such as irrigation facilities (irrigation pumps), mechanised tools like tractors etc. The higher level of technological integration in the farming process ensures less human error and more stable work in the field.

Challenges in Commercial Farming

Commercial agriculture is not only about profits and advantages. There are certain challenges that has slowed the spread of commercial farming in India. Some of them are listed below:

Low market prices: Due to the low productivity of crops, farmers are unable to sell their produce at a competitive price. This results in a decline in profit margins and leads to financial instability for them.

Lack of credit: Farmers lack access to formal credit, which makes it difficult for them to invest in new technologies or buy inputs like seeds and fertilisers on time, thus affecting their productivity levels significantly.

Climate change: Farmers face challenges due to climate change, such as droughts or floods that affect production costs as well as yield sizes, and these effects will be felt most strongly by Indian agriculture.

Conclusion

Commercial farming in India is a lucrative business but has several challenges to take care of before considering it highly beneficial. It offers the opportunity to earn high profits and generate employment for thousands of people. However, it is also fraught with challenges such as poor infrastructure, lack of skilled labour and inadequate access to financing.

Commercial farming has not reached its peak, and if you want, you can get more commercial farming information on tractorkarvan.com, along with other relevant information on correlated topics.

Arpit Srivastava
Published By
Arpit Srivastava
Arpit holds a B.Tech degree in Electronics and Communication Engineering from Babu Banarasi Das Northern India Institute of Technology. He is a professional content writer having skillset of writing top quality research based content for various niche and industries. With over 7 years of experience, he holds expertise in writing SEO-friendly content on a wide range of topics related to agriculture, tractors, and farm implements. In his free time, he loves to explore new places, try different cuisines, and play sports like cricket and badminton.
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