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Agriculture Must Become More Attractive to Draw Youth Back: Ex-Nestle CMD Suresh Narayanan

India’s food security will remain firmly rooted in its rural farms and cannot be sustained by urban centres, underscoring that transforming agriculture into an attractive, viable and technology-driven vocation for the next generation is a national imperative that extends well beyond the remit of government alone. In an interview with News Associate, BD Narayankar caught up with Suresh Narayanan, former Chairman and Managing Director of Nestlé India, on the sidelines of the Reimagining Agro-Food Processing Conference, organised by the Bengaluru Chamber of Industry and Commerce (BCIC), in Bengaluru. Excerpts:

Q: Can the Dr. Verghese Kurien model be reborn for a digital age?

A: The Dr. Verghese Kurien model is extremely relevant even in the digital age. What it essentially demonstrated was that sustained high-quality dairy practices, backed by science and technology, can transform rural livelihoods. The system ensured rigorous testing of milk quality and, importantly, enabled transparent and fair payments to farmers.

With the integration of digital systems today, payments and procurement processes can become even more efficient and transparent, further strengthening the model. If the Verghese Kurien-inspired cooperative system, particularly the Amul/Kaira model, is expanded and modernised, its future in India remains very strong.

As India grows economically, the demand for protein-based nutrition will continue to rise. Milk, being a key source of nutrition and protein, makes this model even more relevant. Today, the widespread availability of fresh pouch milk across the country itself reflects the success and scalability of this system.

Q: Can India turn farmers into entrepreneurs before agriculture becomes unsustainable due to ageing farmers?

A: One of the major challenges is that younger generations are increasingly moving away from agriculture towards the services sector. As a result, the average age of Indian farmers is significantly higher than the national average, indicating a clear talent and participation gap in agriculture.

To address this, agriculture must become more structured and attractive. This requires adoption of better agrarian practices, transparent and fair price discovery mechanisms, and strong infrastructure support in areas such as quality management, testing, storage, and logistics. If these elements come together, agriculture can become more viable and can gradually attract younger people back into the sector.

Q: Why do farmers still struggle despite decades of cooperative reforms? What is the solution?

A: Cooperative reforms have seen their greatest success in the dairy sector. The key reason is the design of the system: farmers receive fair prices, are supported with inputs and best practices, and have access to a farm-gate procurement system that reduces dependence on middlemen such as traders or mandis.

The real challenge in agriculture is uncertainty. Farmers face risks related to weather, market fluctuations, and price instability, often without adequate protection. If price discovery becomes more transparent and efficient, agricultural economics will improve significantly. Reducing risk through better infrastructure and institutional support is essential if similar cooperative successes are to be replicated in other sectors.

Q: Who will farm India in the next 20 years if the average age of farmers keeps rising?

A: This is a serious structural challenge. With rapid urbanisation and expansion of the services sector, a larger share of the workforce is moving away from agriculture. However, food production cannot shift to urban centres like Bengaluru, Delhi, or Mumbai—it will continue to depend on rural India.

Therefore, agriculture requires a long-term, multi-stakeholder approach involving the government, institutions, and society at large. It cannot be left to policy alone. The key lies in making farming more attractive, viable, and technology-driven so that younger people are encouraged to participate. Without this, sustaining agricultural productivity will become increasingly difficult.

Q: Is the cooperative-to-company transition successful in India?

A: Cooperatives in India are primarily socialistic in nature, designed to ensure fair returns to farmers rather than focusing on profit maximisation. While this model has delivered success in several sectors, it also faces challenges in balancing farmer welfare with commercial sustainability.

The transition from cooperative structures to more corporate-like models has had mixed outcomes. The core issue remains ensuring that farmers receive remunerative prices while also maintaining efficiency, quality, and sustainability in the system.

Q: Can the cooperative model be replicated in other agri-products?

A: Replication is possible, but success depends heavily on supporting infrastructure. The cooperative model works when there is strong logistics, transparent price discovery, and assured market access for produce.

Where these conditions exist, cooperatives and farmer producer organisations can perform well. However, in regions where infrastructure and market linkages are weak, such models often struggle to sustain themselves over time.

Q: Why do most FPOs fail while only a few succeed?

A: Farmer Producer Organisations (FPOs) tend to succeed when they are professionally managed, located in agriculturally strong regions, and supported by proper infrastructure and market access. In contrast, FPOs often fail when they lack input systems, transparent pricing mechanisms, and reliable channels for selling produce. The difference between success and failure largely lies in governance, location advantages, and ecosystem support.

Q: What are your views on agriculture transformation?

A: The future of Indian agriculture depends on integrating technology with farming practices, ensuring fair and transparent pricing systems, and building strong infrastructure that reduces risk for farmers. If these elements are aligned effectively, agriculture can become more sustainable and rewarding for farmers, while also ensuring stable, high-quality food supply for consumers.