May 26, 2014

An 11-point agenda for resurrecting Indian agriculture and restoring the pride in farming

 Time to usher in "Acche din..." for the Indian farmers.

Indian agriculture is faced with a terrible agrarian crisis. It is a crisis primarily of sustainability and economic viability. The severity of the crisis can be gauged from the spate of farm suicides. In the past 17 years, close to 3 lakh farmers reeling under mounting have preferred to commit suicide. Another 42 per cent want to quit agriculture if given a choice.  The spate of farmer suicide and the willingness of farmers to quit agriculture is a stark reminder of the grim crisis.

Even at a time when the country was in the midst of elections, there was a spurt in farm suicides. In the past few weeks, on an average five farmers ended their lives in Vidharbha every day, another five in Telengana, three in Bundelkhand. In Marathawada in Maharashtra, news report say 101 farmers have taken their own lives in March-April. In progressive Punjab, 14 farmers have ended their lives in past two months.


When Prime Minister Narendra Modi blames UPA for the plight of jawan and kisan during the past 10 years, he raises a lot of hope for the beleaguered farming community. During election campaigning, he had specifically talked of farmer suicides, farm prices, crisis in agricultural marketing and also touched on local agricultural issues in different parts of the country. After all, kisano ke bhi to aache din aane chahiye …

What should therefore be the agriculture agenda for the new government? What should be the strategies and approaches that Narendra Modi has to follow to pull farmers out of the deep morass? Knowing very well that India cannot compromise with its food self-sufficiency, there has to be a number of short-term as well as long-term measures. I am being asked this question time and again. Here is my 11-point agenda:
1) Providing a guaranteed assured monthly income to farmers. According to the Arjun Sengupta Committee report the average monthly income of a farm family is Rs 2,115. This includes Rs 900 from non-farm activities. About 60 per cent farmers are dependent on MNREGA activities to survive, and an estimated 55 per cent farmers go to bed hungry. But these farmers produce economic wealth for the country in the form of agricultural, horticultural and dairy produce. It is high time they are adequately compensated for generating that massive economic wealth in the form of food. My suggestion is that the new government should set up a National Farmers Income Commission which should have the mandate to compute the monthly income of a farm family depending upon his production and the geographical location of the farm.

2) The time for price policy is now over. Every time the Minimum Support Price (MSP) is raised questions are asked about its impact on food inflation. Moreover, the Bali Ministeral of WTO has questioned India's subsidies that it provides to farmers by way of MSP. It is therefore an appropriate time to move from Price policy to Income policy. The income that a farmer earn should be de-linked from the price that his crops fetch in the market. That is why I have been asking for a guaranteed monthly income for for farmers. Let us not forget, if inflation is rising it is also rising for the farmers. While the Govt employees get DA instalments every 6 months to compensate for inflation, and get a pay commission every few year, farmers get only MSP and that too is un-remunerative. In an interesting study from Kerala, it was computed that if paddy price rise was to match the salary rise of govt officials, paddy price in 2005 should have been Rs 2669/qntl. It's Rs 1,310 today. In other words what paddy farmers are getting in 2014 as paddy price is 50 per cent of what they should have earned 9 years ago.

The burden of providing cheap food therefore to 1.25 billion people should not be only on the shoulders of farmers. The society too must share the burden.

3) There is an immediate need to strengthen the network of mandis (market yards) across the country whisch provides farmers with a platform to sell their produce. Leaving it to markets will result in distress sale. To illustrate, let me take the example of rice farmers in Punjab and Bihar. In Punjab, which has a huge network of mandis linked with roads, farmers bring the produce to these mandis. Last harvest, Punjab farmers got an MSP of Rs 1,310 per quintal for paddy. In Bihar, where APMC Act does not operate, farmers resorted to distress sale with prices not exceeding Rs 900 per quintal. The Commission for Costs and Prices (CACP) is now pressurising Punjab Govt to dismantle the mandis and let markets operate. Which means, Punjab farmers will soon go the Bihar way.

4) For a country which was able to build up an excellent marketing network for one of the most perishable commodities -- milk -- I see no reason why a similar approach cannot be adopted in providing a viable marketing network for fruits and vegetables. If the National Dairy Development Programme could ensure that milk is procured from each and every village, and then through a cooperative chain it is finally delivered to the consumers in the cities, I see no reason why India cannot carve out a marketing chain for fruits, vegetables and other farm commodities.

5) Cooperate farming need to be encouraged. Appropriate laws must be framed to make cooperatives more independent and effective. Drawing from the experience of the Amul cooperative in dairy farming, a similar system needs to be adopted for vegetables/fruit farming. I know of small cooperatives of organic farmers which have done wonders. Why can't it be replicated to rest of the crops?

6) Aim at making villages self-reliant in agriculture and food security. Feeding the population has to be linked with farming. Chhatisgarh has given an excellent model of self-reliance in agriculture and food security. It has shifted the focus to local production, local procurement and local distribution. This is exactly what needs to be done throughout the country for which the National Food Security Act needs an amendment. Instead of providing 5 kg of wheat/rice/millets every month, the focus should be on making the villages take care of their own food security needs. This will help reduce the huge subsidy bill on food security that is required every year and thereby reduce fiscal deficit. Such a programme will also help in removing hunger in the long term.

7) Green Revolution areas of the country are facing a crisis in sustainability. With soil fertility devastated, water table plummeting and environment contaminated with chemical pesticides and fertiliser, the resulting impact on the entire food chain and human health is being increasingly felt. The new Government should launch a nation-wide campaign to shift farming to non-pesticides management techniques. In Andhra Pradesh, no chemical pesticides are used in 35 lakh acres. Farmers have even stopped using chemical fertiliser in some 20 lakh hectares. Production has gone up, pesticides pollution has come down, insects attack has also come down, and more importantly farm incomes have gone up by 45 per cent because of reduced health expenses. There has been no farm suicides in these areas. The same system now needs to be extrapolated to the entire country with local modifiations/adaptation.

8) Agriculture, dairy and forestry should be integrated. Agricultural growth should not only be measured in terms of increase in foodgrain production but should be seen in the context of the village eco-system as a whole. This will also shift the focus to low external input sustainable agriculture (LEISA) practices. At the same time such an approach will limit the ecological footprint.

9) Importing food is importing unemployment. Recently, apple growers in Himachal Pradesh have been protesting against the low import tariffs for imported apples as a result of which the local produce goes abegging. There are no buyers for Himachal apples, and the prices have plummeted . Similarly for other crops. The Govt must raise the import duties on agriculture, horticulture and dairy products and refuse to buckle under the pressures being exerted through the Free Trade Agreements. It should not accept the European Union's demand for opening up for dairy products and fruits/vegetables by reducing the import duties. Studies have now shown that indiscriminate signing of FTAs and bilateral agreements has been disadvantageous to the country. Time to revisit the trade treaties and protect domestic agriculture thereby millions of livelihoods.

10) Climate change is certainly going to affect agriculture. But instead of looking at strategies only aimed at  lessening the impact on agriculture and making farmers cope with the changing weather patterns, the focus should also be to limit greenhouse gas emissions from agriculture. Considering that agriculture share in greenhouse gas emissions is about 25 per cent, the thrust must shift to reducing the application of chemical fertiliser/pesticides in farming. Following the AP model of non-pesticides management being the right approach, the cropping pattern too needs a revision. In the dryland regions of the country, for instance, at present hybrid crops which required almost twice the amount of water than normal crop varieties, are grown. Common sense tells us that in rainfed regions, which occupy 65 per cent of the cultivable area, crops requiring less water should be grown. But it is just the opposite in reality thereby accentuating the water crisis at times of rainfall delay.

I see no reason why Rajasthan, a semi-arid region, should be cultivating water guzzling sugarcane, cotton and rice crops. Similarly I see no reason why Bundelkhand should be cultivating mentha crops, which requires 1.25 lakh litres of water to produce 1 kg of mentha oil. Why can't the cropping pattern in Rajasthan and Madhya Pradesh shift to pulses, oilseeds (like mustard) and millets? Why can't the Goovt provide special incentives by way of a higher price for these crops so that farmers can willingly shift to more sustainable cropping patterns?

11) Lack of storage for foodgrains is appalling. It was in 1979 that under the Save Food Campaign, the Govt had promised to set up grain silos at 50 places in the country. This should be the top agenda for the new government. Not even a single grain should be allowed to go waste. #


vizeet srivastava said...

Excellent points. As inflation is the main target of current government I do not see government will be ready to give better life to farmers. I think we should have more people in Agriculture instead of less. We have over-populated and under-productive cities.
Due to the current financial structure we give more importance to consumption than production assuming production will always match consumption. But we live in a world with limited resourses so primary industries should get more importance.
If our politicians don't understand this, time will fix this balance. I think next economic crisis is waiting to happen and if that happens wealth will move to agriculture.
I think Eurasian currency will disrupt the current monetary structure of the world by suddenly making surplus countries more important so probably in 5-10 years we may see the next crisis.

Chandrasekharan Nair said...

Importing any agricultural/farm produces allowed anti-dumping duty on the price difference between imported price and domestic price as per the agreement by WTO to avoid price fall in any Country. Unfortunately all imports done to India for a great price fall of the Items. Natural Rubber imported to India last year was mainly duty paid with a benefit of heavy profit to importers below Domestic price. From July to October 2013 Domestic prices kept higher for duty paid import profitable. At that stage the manufacturer who purchased NR from domestic market will be destroyed by heavy loss compared with importers. At the same time Indian Rubber Board published rubber statistics with a mathematical error for the year 2013 with a reduced quantity of 184038 Tonnes.

Giri Kumar said...

This is sensible,practical and feasable. Mr. Sharma we all will hope that something goes along these lines.

Vijay Kedia said...

Underground Rainwater Harvesting can provide Water security to Rainfed farming, by building up Soil-moisture ( a natural irrigation) .
KFP(Patented) RWH is a Super-Express Highway for Rainwater between Sky & Underground , which can harvest uptp 80% rainwater in the land where it falls. Its an Eco-friendly, Low cost , Mintenance- free, Permanent, Round the Year, Local solution to Water crisis of India.

By recharging Mother earth, KFP will provide not only Drinking water to villages of India but it will create "permanent water security in farms" also. If adpoted in Villages, it will reduce the " Load of water demand by agriculture" on our "existing water sources like Dams" & surplus water will be available in dams- more than sufficient to fulfill Drinking & Industrial needs of Urban India.
for details
"Jalmitra" Vijay Kedia

Suran said...

enjoyed reading it, hope the policy planners do some level headed thinking. the earlier solutions for agri were merely MSP and agri credit. the later has ballooned without any impact, the poor SF and MF are still out of the ambit, despite almost 7 lakh crore agri credit. This has become a disaster with write off ( what Mr Naidu and AP is attempting to do) ? > the credit culture is totally absent. The carry the odium of misuse and abuse of banking institutions is continuing unabated. NO CEO or top management of the bank opposes such decisions; as they are aspirational and looking for the next plum posting. When will the ache din come for the farmer. Having been involved in farming ages heart beats for the indian farmer. Regards