Himachal’s Template For Pricing Natural Farming Produce Should Be Replicated Across Nation

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu is a trendsetter. No, I am not talking about politics. I am referring to his pioneering role in formulating a benchmark pricing structure for organic farm produce.

This surely is the way forward to transition from chemical farming to the much needed sustainable and healthy agro-ecological farming systems.

Ever since Sukhu took over as Chief Minister in December 2022, I have followed with interest his efforts to promote organic farming in the hilly State. Soon after he assumed office, he announced a higher procurement price for organically produced cow and buffalo milk. At Rs. 45 per litre for cow milk and Rs. 55 for buffalo milk, I thought it was a good beginning.

I had, in an X post, complimented him for going all the way as regards the pricing formula around which the dairy industry relied upon, and backed it up with higher prices to farmers who could deliver safe and healthy milk.

It was heartening to see that in the recent budget, he announced a further hike of Rs six per litre for price of organic cow and buffalo milk, raising the procurement prices to Rs. 51 and Rs. 61 for cow and buffalo milk, respectively.

He then announced a Minimum Support Price (MSP) for procuring organic maize and wheat at Rs. 30 per kg and Rs. 40 per kg, respectively. The MSP for wheat has now been hiked from Rs. 40 to Rs. 60 per kg, and for maize from Rs. 30 to Rs. 40 per kg. In addition, a transportation subsidy of Rs. two per kg has been announced for carrying wheat and maize to procurement centres.

At a time when a legal guarantee for MSP is a hot issue, with some Punjab farmer unions protesting for almost a year, and a dialogue still continuing with the Union government representatives, the news of Himachal Pradesh fixing a higher MSP for organic produce has gone unnoticed.

Against the MSP of Rs. 2,425 per quintal for wheat in the 2025-26 marketing season, which means Rs. 24.25 per kg, the MSP that HP has announced for organic wheat is now Rs. 60 per kg. Similarly, the MSP for maize that has been announced by the Centre for the 2025-26 marketing season stands at Rs. 22.25 per kg, while organic growers in the hilly state will get Rs. 40 per kg!

The higher prices will provide a substantial jump in returns for the farmers who switch to agro-ecological farming practices. But more importantly, the push to transform agriculture – moving from intensive agricultural practices to agro-ecological farming systems – will get a boost with price incentives. It will also save the hilly state from the devastation that chemicals in farming have left behind, and that includes soil erosion and declining soil fertility.

There is no denying that pricing is a very important factor in promoting organic farming.

Himachal Pradesh has surely taken a lead in setting up a template for pricing natural farming produce.

A few days back, he launched a registration form for organic turmeric farmers, saying: “This initiative, announced in the 2025-26 (State) Budget, aims to strengthen the rural economy by providing a guaranteed price for turmeric and encouraging natural farming in the State. For the first time, government agencies will procure raw turmeric directly from farmers, which will be a game-changer for their livelihoods and ensure immediate cash flow into the rural economy.”

The MSP for organic turmeric has been fixed at Rs. 90 per kg against the market price hovering around Rs. 25 to Rs. 30 per kg. The substantial increase in prices will encourage organic production of turmeric, which will now see a shift towards organic cultivation practices. Already a number of SHGs are engaged in turmeric cultivation but the prevailing market prices have not offered any incentive to increase its cultivation.

In any case, the consumer demand for organic turmeric has grown in the recent years, especially after the Covid-19 pandemic, which has made people realise the importance of building body immunity. Sukhu has made it clear that the processing of raw turmeric (haldi) will be undertaken by the state agencies and the brand sold as ‘Himachal Haldi’. Earlier a similar initiative was launched for organic maize with the final produce being sold in bags of five kg and 120 kg.

With the target to bring one lakh farmers more in the organic farming fold in 2025-26, I am glad the State Government is not giving an aggressive push for a transitional change. A slow but steady effort that is backed by government support by providing assured prices and ensuring separate processing and marketing, is much better than announcing impractical targets that remain only on paper.

Anyone travelling through the hilly state will come across bill boards and numerous marketing outlets for HPMC (Himachal Pradesh Horticultural produce Marketing and Processing Corporation Ltd.) products.

In the months to come, it will be important to see HP launching a marketing blitz for organic farm produce as well. The branding of organic produce in the form of safe and healthy food will definitely emerge as an USP for the hilly State. More importantly, it will be an attraction for the weekend tourists from Punjab and Haryana, who flock to the hills for recreation and vacation.

Given that people now have enough awareness about the advantage associated with organic produce, a strong demand for organic wheat, maize and turmeric will hopefully follow.

Moving beyond politics, the time for shifting towards agro-ecological farming systems has come. While numerous farming groups engaged in natural farming are already showing positive results, the effort remains restrained by low market prices, Himachal has provided a price framework that needs to be replicated. Instead of just relying on low cost of production as the reason behind higher income for organic growers, the immediate need was to provide a higher assured price. The claim of low cost of cultivation did not serve as an attraction.

Even the Niti Aayog was appreciating natural farming expansion but had missed on more pressing need for an assured and attractive price to growers. Consumers are willing to pay a higher price for organic produce and that doesn’t mean that organic farmers should not receive the benefit of higher consumer prices, and instead allow middlemen to walk away with profits. That is why I see a new and positive trend that Sukhu has initiated. It will go a long way in addressing the growing need for safe and healthy food for the consumers and at the same time help preserve the environment.

Despite the flawed belief in markets encouraging efficiency and quality, there is a dire need for state intervention to set the right and guaranteed prices for organic farmers. Instead of focusing on increasing production to build surpluses, ‘Grow safe and healthy food’ should be the new mantra for the future of farming.

(The author is a noted food policy analyst and an expert on issues related to the agriculture sector. He writes on food, agriculture and hunger)