Page 114 - economic review

AGRICULTURE AND ALLIED SECTORS86

Outlook for Agriculture and Allied Sectors

2.201 The latest international developments pose greater challenges for the agricultural development
in Kerala. The oil prices are expected to average 53 dollars per barrel in 2015, 45 per cent lower
than 2014. Lower prices, if they persist, will push other commodity prices down especially those of
fertilizers and food commodities. Agricultural prices are expected to experience a 4.8 percent decline
in 2015, on top of the 3.4 percent decline in 2014. Raw material prices are expected to decline as
well cotton and natural rubber by 13 percent each, and timber by 3 percent. Beverage prices ( tea
and cofee a key component for Kerala ) will decline almost 6 percent, driven by coffee (Arabica)
prices as the market rebuilds lost supplies due to Brazil’s crop failure in early 2014. (January,
2015, World Bank). Hence the need of the hour is to formulate appropriate policies to create more
demand domestically by expanding the domestic market as well as foraying into newer and hitherto
unexplored markets internationally . In addition, strengthening of the marketing and extension
services of agriculture commodities in the state is also vital for the helping the farmer get the true
reward for his labour.
2.202 Implementation of different Rural Development Schemes and the initiatives taken by Kudum-
bashree have helped the poor to improve the quality of life in the state. While NREGS has generated
sizable employment in rural areas, the Nirmal Bharat Abhiyan scheme helped to improve sanitation
facilities in rural areas. However concrete efforts have to be taken to sustain the present achieve-
ments and to improve standard of living in Rural Kerala.
2.203 While agricultural self sufficiency may not be possible in Kerala, over dependence on other
states for consumption of food is not advisable. Making farms viable and attractive for the younger
generation should be a priority. The well being of Kerala depends to a large extent on the well being
of its rural sector and economic development must necessarily have a rural focus. Food security and
sustainable livelihood options for fishermen, and other vulnerable sections of people who depend on
agricultural income, will continue to be a major priority for Kerala.

Kerala State Planning Board