The integration of domestic agriculture with global trade without putting in place necessary institutional arrangements and developing required skills is harmful for agriculture sector. Bringing more area under irrigation is required at a fast pace. As of now about 60 per cent of the net sown area is rain-fed and has low productivity levels.

The long-term food security is a major concern of the country at present and we need a second green revolution, which is nowhere in sight. On the contrary, there has been a slowdown in agricultural growth.

The slowdown is accompanied by a significant reduction in the share of agriculture in national product, but without much reduction in the share of workers depending on it for their livelihood. The support systems to farming have weakened, public investments in agriculture have declined and institutions have become unresponsive. In the absence of any breakthrough in cost reducing technologies, the rising input prices have made cultivation un-remunerative. The result is the manifestation of a crisis, often, in the extreme form of distress that is resulting in suicides by farmers.

Based on the recommendations of Swaminathan Committee, Radhakrishna Committee and the Approach Paper to 11th plan, we should form a consensus.

It is the growing indebtedness that compels attention. It is declining earnings that result in the inability to repay debt that triggers farmers' decision to commit suicide. Hence, indebtedness of farmers becomes a central issue to be addressed. But the way the Finance Minister has addressed this issue is simply not going to be effective in tackling the problem.

The underlying causes are stagnation in agriculture, increasing production and marketing risks, institutional vacuum and lack of alternative livelihood opportunities. There is an urgent need to expand the production base of agriculture with emphasis on small and marginal farmers so as to integrate them with mainstream development. This calls for appropriate technological innovations, institutional alternatives and introduction of novel instruments of intervention. Institutional credit availability to agriculture should be increased, excluded sections of the farmer households be brought into its ambit and a qualitative improvement in the credit delivery arrangements be brought about. The debt burden of farmers to informal sources should be reduced by formalising it through transferring the informal debt to formal institutions.

What urgently needs to be done by the government is:

• Introduce proper tenancy legislation, prepare land revenue records, and expedite the process and registration of mutation.
• Promote contract farming and organise farmers for collective actions.
• Introduction of risk mitigation instruments and proper crop insurance schemes.
• Judicious public expenditure for the development and maintenance of rural infrastructure and resources particularly water, power and forests etc.
• Linking of small farmers with high value agriculture by organising Self-Help-Groups.
• Research, development and technological innovation in productivity enhancement, which should be different for irrigated and rain-fed areas.
• Proper storage, warehousing and transportation facilities and standardisation procedures for farm produce.
• Dis-intermediation and marketing and supply chain management is required.
• Creation of off-farm employment and promotion of allied activities.
• The integration of domestic agriculture with global trade without putting in place necessary institutional arrangements and developing required skills is harmful for agriculture sector, and
• Bringing more area under irrigation is required at a fast pace. As of now about 60 per cent of the net sown area is rain-fed and has low productivity levels.

Implementing these suggestions require a much higher level of long-term resolve.

In recent years there is a stagnation in productivity growth due to a variety of causes, some of the important points are:

• Declining farm size and income.
• Depleting natural resources, for example a steep fall in ground water level and impaired water quality.
• Increasing input costs, particularly diesel, etc.
• Deficiency of micro-nutrients in the soil and deteriorating soil health, and
• Inadequate post-harvest technology.

There is ample evidence in the country to show that our farmers can produce more foodgrains, horticultural and animal husbandry products, etc. provided they have opportunities for assured and remunerative marketing, therefore what is required to be done is:

• Announce the MSP for a wide range of crops of importance before sowing.
• Fix the procurement price at the time of harvest, taking into account the prevailing market price. The procurement price will take into account the cost escalation in inputs like diesel, etc.
• Since Government purchases are for ensuring a hunger-free India, issue a Smart Card or coupon which will entitle those farmers who sell their produce, to purchase inputs like seeds, fertilizers, veterinary pharmaceuticals, etc., at concesional prices.

Through the above three-pronged strategy, both, national food security and sovereignty, as well as freedom to farmers to get the best possible price, can be achieved.

Taking all the above into account, the 11th Plan strategy has also rightly suggested following targets to raise agricultural output based on the following elements:

• Double the rate of growth of irrigated area.
• Improve water management, rain water harvesting and watershed development.
• Reclaim degraded land and focus on soil quality.
• Bridge the knowledge gap.
• Diversify into high value outputs such as fruits, vegetables, flowers, etc., but with adequate measures to ensure food security.
• Promote animal husbandry and fishery.
• Provide easy access to credit at affordable rates.
• Improve the incentive structure and functioning of markets, and
• Improve the incentive structure and functioning of markets, and

The task ahead

To sustain a growth rate on a long-term basis, cropping intensity and yields must rise substantially without further damage to ecology and environment, as has been the case in the past. It would require additional investment in rural infrastructure, irrigation, agricultural research and extension and institution building.

Marginal and small farmers are increasingly finding that their holdings are not viable. Promotion of allied activities, development of rural non-farm sector, easy provision for leasing out or leasing in land, organisation of small and marginal farmers through formal or informal collectives based on SHGs and cooperative models are some of the suggested initiatives.

Concerted efforts should be made to resurrect the rural credit delivery agencies in terms of their geographical spread as well as organisational strength, in order to ensure healthy delivery of credit for agriculture and rural enterprises.

Courtesy: Organiser, April 06, 2008