India

India Must Diversify Rural Jobs Beyond Farming, IFAD President Says

By Pallavi Singhal

International Fund for Agricultural Development (IFAD) President Alvaro Lario said that many rural families in India rely on multiple sources of income because farming alone does not provide enough earnings. He urged India to create decent jobs and raise rural household incomes by focusing on value‑added activities such as processing and packaging agricultural products. Lario noted that IFAD’s new eight‑year strategy will target poorer states, 112 aspirational districts identified by Niti Ayog, and regions facing climate shocks, aiming to reach about 13 million people in three million rural households.

Lario highlighted the importance of climate adaptation, improved implementation of rural programmes, and private investment in raising farmers’ incomes. He warned that higher global food prices could persist through the first quarter of 2027, driven by rising costs of inputs such as fertilisers and fuel.

He cited an example of an organic spice processing unit handling 10,000 metric tonnes of ginger, turmeric and chilli linked to 5,500 small‑scale farmers, arguing that such processing can create formal jobs and increase rural incomes.

Regarding climate shocks, Lario said that more than half of climate‑related borrowing in many countries goes to adaptation, including water management, soil health and land degradation. He mentioned investments in Maharashtra that built 3,500 farm ponds in 1,200 villages and highlighted the need for anticipatory action and early warning systems in Himalayan states.

Lario stressed that successful rural policies depend on effective extension services and the capacity of programme‑management units. He noted that embedding the local private sector into programmes can quadruple small‑scale farmers’ incomes, a result of public‑private‑producer partnerships.

He warned that rising input costs and food price inflation, exacerbated by El Nino, will continue to pressure farmers and consumers, especially the poor.

"Public finance alone cannot deliver the transformation of food systems, raise rural incomes or create decent jobs," Lario said. "The private sector accounts for more than 90% of global food‑systems activity and complements public‑sector financing by providing technology, market access and logistics."