Date: 19/09/2022
Relevance: GS-3: Agriculture
Key Phrases: Draft National Strategy for Promotion of Rural Homestays, Doubling of Farmers Income, multiplier effect, National Legal Framework for Agri-tourism, Regulations of Agri-tourism, Linkage with tourism circuits.
Why in News?
- A report of the committee on the Doubling of Farmers’ Income (DFI) has emphasized the need for a policy for developing agri-tourism.
- Keeping this in view, the Ministry of Tourism recently came up with a ‘Draft National Strategy for Promotion of Rural Homestays’ under which agri-tourism has been included.
Key highlights of the agro-tourism sector:
- Globally, the agri-tourism market was valued at $42.46 billion in 2019 and is projected to reach $62.98 billion by 2027, growing at a CAGR of 13.4 percent from 2021 to 2027.
- Agri-tourism includes a variety of activities and services and it is in general considered to be a low-investment, low-risk sector.
- It can fuel rural economies through the multiplier effect and the benefits shared amongst different businesses within the community.
What is agro tourism?
- Agri-tourism can be defined as any business conducted by a farmer or processor for the enjoyment or education of the public, to promote the products of the farm, and to generate additional farm income.”
- It includes the following four factors:
- combines the essential elements of the tourism and agriculture industries;
- attracts members of the public to visit agricultural operations;
- is designed to increase farm income; and
- provides recreation, entertainment, and/or educational experiences to visitors.
Importance of Agri-tourism:
- Agri-tourism provides a number of economic, educational, and social benefits to producers, consumers/tourists, and communities.
- Furthermore, agri-tourism provides incentives for producers to remain in agriculture.
- The agriculture industry is facing a growing number of challenges, such as market competition, rising land and input costs, encroachment from sprawl, and a complex regulatory environment.
- In order to stay in business, some operations have had to look for ways to add value to their products and create dependable revenue sources.
- Agri-tourism enterprises provide numerous economic benefits to the surrounding community.
- Operations create jobs and support the local economy through their purchases of goods and services.
- Other “spillover” economic development opportunities occur when agricultural tourists shop, eat and lodge in the surrounding community.
- Agri-tourism also provides rural communities with the potential to increase their local tax bases because farmland and forestland generally require fewer community services and generate more local tax revenue than they cost in services.
- More importantly, agri-tourism operations are unique, local businesses, which cannot later be “outsourced” to other communities.
History of Agro-tourism:
- Agri-tourism was officially initiated and recognized by Italy in 1985 when the country’s parliament passed the National Legal Framework for Agri-tourism.
- The fundamental concept of agri-tourism was entrepreneurial diversification of a farm.
- This was later amended to ‘Regulations of Agri-tourism’, which privatised and extended the concept of agri-tourism to agricultural firms.
- Agri-tourism is regulated at the regional level in some countries, such as Spain, rather than at the national level, or through a national framework regulation.
- This is due to the regional autonomous community's expertise in tourism management.
- Many states in the US have passed agri-tourism laws, which may provide an affirmative defence to lawsuits brought by injured customers.
Agro-tourism in India:
- Revenue from agri-tourism is growing at an annual rate of 20 percent in India.
- Maharashtra is the first State to formulate an agri-tourism policy, which aims at rural development.
- The policy governs who can engage in agri-tourism and how to apply for loans and tax benefits.
- It also directs that for registration approval, agri-tourism centres must have some basic requirements.
- In 2018-20, 17.9 lakh tourists visited these agri-tourism centres in the State, helping farmers earn ₹55.79 crores.
- It also generated one lakh jobs for rural women and youth.
Best practices by the states:
- Karnataka’s policy addresses two key challenges of awareness and capacity building for the development of agri-tourism in the State.
- The policy also seeks collaborative support from various departments and institutions.
- Agri-tourism projects are eligible for incentives, subsidies and concessions.
- Kerala, on its part, has decided to set up the Kerala Agri-tourism Network to guarantee monetary benefits to the farming community, by linking farming activities with tourism.
- However, regional development policies are equally important in the push for agri-tourism and are vital as they focus on better exploitation of local resources, and provision of appropriate infrastructure networks and essential services to tourists in a specific region.
Measures that must be considered while implementing agri-tourism:
- Formation of separate committees by the states:
- State governments must form a separate committee for formulating guidelines for agri-tourism which may include not serving prohibited materials and providing for the utmost safety of the customers.
- Separate license for loans and tax benefits:
- State tourism departments must provide a separate license under agri-tourism to be eligible for getting loans and tax benefits.
- Co-operative societies may be included in providing loan facilities to develop agri-tourism.
- Participation of local administrations:
- Local administrations such as village panchayats, with their local influence and support, can help in the coordination and facilitation of agri-tourism.
- Seasonal festivals:
- State tourism departments must organize seasonal festivals along with agri-tourism farms for a wider reach.
- Diploma/certified courses for rural youth:
- Rural youth may be trained for agri-tourism by offering diploma/certified courses.
- Awareness creation:
- Awareness of agri-tourism has to be increased through online and social media platforms because tourists are highly influenced by social media.
- For instance, Incredible India and Enchanting Tamil Nadu digital platforms can be utilized for promoting agri-tourism.
- Collaboration with the travel trade and online platforms:
- Marketing may be in partnership with the travel trade and online platforms, as agri-tourism centers can benefit from the former’s network and marketing expertise.
- Training and workshops for enriching hospitality skills:
- The hospitality services of agri-tourism farms can be improved by roping in professionals to impart training.
- State governments must organize workshops to enrich the hospitality skills of farm resort owners and local communities of the region, to ensure a better customer experience.
Conclusion:
- There is a need for the promotion of Agri-tourism in the country through the network of public and private sectors.
- Since agriculture is a state subject, the development of professionals in the field of agro-tourism should be a focal point in the policy framework of the tourism department.
- Development of such professional courses would not only help in bridging gaps in agro-tourism but also acts as a base point for potential entrepreneurs to initiate Agri-tourism start-ups.
- To create a demand for these courses, the University should have a better linkage with the state tourism department and start upgrading the skills of the employees who are working in the department, Krishi Vigyan Kendras, and State Agricultural Universities to bridge the gap and connection between the farming community as well as policymakers.
- Since the engagement of various stakeholders in Agri-tourism results in prosperous development of the sector, as it is a subcomponent of rural tourism.
- However, there is a huge scope for product-specific development of Agri-tourism in India involving experts and practitioners across the country.
Source: The Hindu BL
Mains Question:
Q. Agro tourism combines the aspects of agriculture and tourism industries, providing social and educational benefits to visitors and an opportunity for farmers to maximize their profit and employment potential on farm products and services. Examine. (150 words).
