Commercial Farming-Based Livelihood Models by NABARD, ICAR, and Other Organizations in India

1. Introduction

Commercial farming-based livelihood models are market-oriented, resource-efficient, and income-enhancing farming systems designed to uplift farmers from subsistence agriculture to profitable enterprises.
These models integrate production, processing, value addition, and marketing components to ensure sustainable livelihoods for rural households.

In India, institutions such as NABARD, ICAR, NHB, NFDB, MIDH, and SFAC play a key role in promoting and financing such models, suited to various agro-climatic zones and socio-economic conditions.

2. Objectives of Commercial Farming-Based Livelihood Models

1. To enhance farm income and employment opportunities.
2. To promote diversification and commercialization of agriculture.
3. To ensure optimum utilization of natural and human resources.
4. To integrate production–processing–marketing linkages through FPOs and cooperatives.
5. To support sustainable and climate-resilient livelihood options.

Role of Major Organizations

• NABARD (National Bank for Agriculture and Rural Development)

Focus Areas:

• Financing and developing bankable, replicable project models for commercial farming.
• Promoting Farmer Producer Organizations (FPOs) for aggregation, input supply, and marketing.
• Encouraging value chain and processing enterprises at village level.
• Supporting agri-entrepreneurship through credit, capacity building, and incubation.

Key Models by NABARD:

Fact: NABARD has developed over 300+ model bankable projects across crops, livestock, fisheries, and processing sectors.

1. ICAR (Indian Council of Agricultural Research)

Focus Areas:

• Designing location-specific Integrated Farming System (IFS) models.
• Promoting high-value commercial enterprises such as protected cultivation, floriculture, and dairy.
• Demonstrating climate-resilient technologies through KVKs (Krishi Vigyan Kendras).
• Providing technical standards and profitability assessments for new enterprises.

Examples of ICAR-supported Models:

• ICAR’s IFS models have been reported to increase farmers’ income by 2–3 times compared to monocropping.
• There are over 75+ IFS models developed for different agro-ecological regions in India.

• Other Organizations and Programmes

4. Major Types of Commercial Livelihood Models

5. Enabling Support Systems

6. Success Examples in India

7. Key Success Factors

• Location-specific enterprise mix and resource optimization.
• Strong institutional linkage (NABARD–KVK–FPO–Bank).
• Access to technology, finance, and markets.
• Skilled training and capacity building of farmers.
• Climate adaptation and risk diversification through IFS.

8. Challenges and Constraints

• Limited access to credit for smallholders.
• Poor post-harvest and cold chain infrastructure.
• Lack of organized markets in remote regions.
• Knowledge gaps and weak extension services.
• Fragmented landholdings limiting enterprise expansion.

9. Outcomes and Impacts

• Increased farm income and employment generation.
• Improved nutritional security through diversified products.
• Enhanced resource use efficiency and environmental sustainability.
• Strengthened rural entrepreneurship and value chains.

Integrated commercial models under NABARD and ICAR have shown 40–60% increase in net farm returns and 25–35% rise in employment generation (NABARD & ICAR Annual Reports).

Key Facts for Exams

• NABARD established in 1982, apex body for agricultural credit and rural development.
• ICAR has developed over 75 integrated farming models suitable for various zones.
• Wadi model (tribal orchard system) is one of NABARD’s most successful livelihood models.
• FPOs (over 10,000 promoted) are key vehicles for commercializing smallholder agriculture.