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High risks, high rewards: the economics of illegal cannabis farming in India’s Odisha

by admin January 2, 2025
January 2, 2025
High risks, high rewards: the economics of illegal cannabis farming in India’s Odisha

In the remote hilly terrains of Odisha, India, cannabis cultivation thrives amid legal prohibitions and growing enforcement measures, as per a Aljazeera report.

Farmers, faced with the challenges of traditional agriculture, have turned to this high-profit but illicit trade as a means of economic survival.

The state’s geography and socio-economic conditions create a unique backdrop for a trade that sustains livelihoods while drawing the attention of law enforcement.

Despite increased raids and surveillance, cannabis cultivation persists, highlighting the complex interplay between opportunity, risk, and enforcement in one of India’s most underdeveloped regions.

Illicit cannabis farming: risky but lucrative

The cultivation of cannabis, though illegal under India’s Narcotic Drugs and Psychotropic Substances Act, 1985, has become a significant source of income for many farmers in Odisha.

Traditional crops like sweetcorn and vegetables yield annual incomes averaging ₹30,000 ($357), barely enough to sustain families.

In contrast, cannabis cultivation can fetch up to ₹500,000 ($5,962) within five to six months.

This stark disparity in earnings drives farmers to cultivate cannabis in remote, hard-to-access areas, often deep within forests or on rugged hillsides.

The planting season begins in July, and the crop matures within five months.

Despite unpredictable yields due to excessive rainfall and other factors, farmers remain attracted to its profitability, which far outpaces conventional farming.

The product’s value further multiplies along the supply chain.

Traders purchase cannabis at around ₹1,000 ($12) per kilogram, but its market price in urban centres surges to ₹25,000 ($298) per kilogram.

This vast price differential underscores the lucrative nature of the trade and the challenges authorities face in curbing it.

Authorities try to curb illegal cannabis farming

Odisha’s law enforcement agencies have ramped up efforts to combat illegal cannabis cultivation.

Between 2021 and 2023, authorities seized 600 tonnes of cannabis worth approximately $200 million and arrested 8,500 traffickers.

They also destroyed over 28,000 hectares (70,000 acres) of cannabis fields, the largest such operation in India.

Drones, satellite imagery, and advanced mapping tools are now standard in tracking plantations hidden in the state’s mountainous regions.

However, the terrain isn’t the only obstacle. Many areas used for cultivation are former rebel strongholds, riddled with landmines, posing significant risks to enforcement teams.

Despite these efforts, law enforcement has not eradicated the trade.

The persistent demand for cannabis in India’s urban markets ensures that farmers are willing to take the risks associated with cultivation.

While authorities have reduced the number of active plantation areas from 12 to 8, the trade’s profitability continues to make it appealing.

Other steps to curb illegal cannabis farming

Recognising the socio-economic factors driving cannabis cultivation, the Odisha government has introduced measures to provide alternative livelihoods.

Millet, a traditional grain, is being promoted as a sustainable crop.

Free seeds and state procurement schemes aim to encourage farmers to transition to millet farming.

Odisha has emerged as a leading producer of millet, and many farmers who faced repeated losses due to police raids have embraced the shift.

However, the income disparity remains a challenge. While millet farming offers stability and legality, it cannot match the profits of cannabis cultivation.

For some farmers, the risk of legal consequences is worth the financial rewards, highlighting the need for more comprehensive interventions that address both economic and enforcement dimensions.

The post High risks, high rewards: the economics of illegal cannabis farming in India’s Odisha appeared first on Invezz

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