Dr Ashwani Mahajan
The agricultural crisis in the country is once again in focus due to ongoing farmers’ movement, which is also turning violent sometimes. To somehow minimise the damage, which may lead to electoral loss, State Governments have started announcing waiving off of agricultural loans. Recent spurt in farmers’ movement is not due to any decline in agricultural production; as we note that there has been a record production of wheat, rice, pulses and oilseeds last year (2016-17). The production of all cash crops except sugarcane has also increased. Despite that, farmers’ suicides have continued unabated. The BJP-led NDA government has been consistently claiming in the past three years that they have taken unprecedented steps for agriculture, rural development and farmers’ welfare, including increase in out go of agricultural credit year after year.
Agriculture Crisis despite increasing production
If we compare the data of production of 2016-17 with 2015-16, we find 36 percent increase in pulses production, 33 percent in oilseeds production, 5.6 percent increase in wheat production, 4.5 percent in rice production, and 8.7 percent in cotton production. If we look at productivity, in the last 10 years, the yield of wheat per hectare has increased by 12.5% and in case of rice it has increased by 16%. Overall agriculture has witnessed significant growth in both production and productivity.
Apart from the fact that this crisis is not due to production failure, this agricultural crisis has not cropped up suddenly recently. This crisis is deep and it is therefore important to be diagnosed in depth. However, the matter of concern is that the present policy makers are not ready to understand its nature and intensity. In the last 37 years, the contribution of agriculture in national income has declined from 38 percent to just 15 percent, without there being any significant decline in people engaged in agriculture. The situation is that according to the Socio-Economic Census 2011, 92 percent of the rural households were such whose maximum earning member’s income was less than Rs 10000. It was less than 5000 rupees in 75 percent households.
The Governments after Independence have tried to deal with the problems of agriculture in their different ways. The food crisis of the 1960s was tried to be dealt with new agriculture strategy with package program of hybrid seeds, chemical fertilisers and insecticides. Production of food increased initially, however, later in later years, pace was slowed and agricultural production got unbalanced, and despite being an agricultural economy, ultimately we became net food importing country, which imported nearly rupees 94,000 crore pulses and edible oils from the rest of the world in 2015-16. In the 20-year period from 1995 to 2015, 322028 farmers had committed suicide in India (according to the figures of National Crime Research Bureau), and due to apathy of the governments farmers suicides continue unabated.
Debt waiver is no agriculture policy
The Government makes all types of economic policies; export-import policy, industrial policy etc. However, making agricultural policy is not on their priority. In the name of new technology, ‘GM’ seeds are advocated (by many official organisations including the NITI Aayog), without analysing their impact on health, society, environment and biodiversity. No comprehensive plan for agriculture is in sight.
Hollowness of their policy advocacy for GM is evident from the fact that despite failure of BT cotton they continue with their stride without even owning the responsibility. Only sensitivity on the part of the political class is demonstrated by their promise to waive off the agricultural debt, without addressing the reasons for farmers’ indebtedness. Earlier, UPA Government waived off agricultural loans to the tune of Rs 70,000 crore. After that, the Yogi Government of Uttar Pradesh has now announced a debt waiver. On the same lines, the BJP-ruled states like Madhya Pradesh, Rajasthan, Maharashtra etc. are also facing fierce agitations demanding for farm loan waivers. The Maharashtra Government has already announced a debt waiver of loans up to Rs 1.5 lakh.
Due to rising costs, non remunerative farm prices, monsoon failures, rising cost of cultivation, increasing health care costs etc., the farmers are constantly getting trapped into debt and are losing their land. After such debt waivers, loans from banks and cooperative institutions etc. will be waived off, however, most stressful loans from moneylenders, businessmen and micro finance companies continue to hound them. On the other hand, the basic reasons causing farmers’ indebtedness remain unaddressed.
Remunerative prices of agricultural produce is the solution
Farmers in India do not get remunerative price for their produce, which could cover their true cost of production. Food inflation, which is sighted as main reason for not raising support prices, has been there due to speculative activities and not because of the support prices.
Agricultural costs including fertilisers, seeds, insecticides and agricultural equipments have gone manifold. Therefore, the reduction in costs and remunerative prices of agricultural produce is the only solution to agriculture crisis. In this regard it is pertinent to atleast implement M S Swaminathan’s report, which recommended that the farmers should be given minimum prices by adding 50 percent to their cost. The same was also promised in the election manifesto of the ruling Bharatiya Janata Party, and has not been implemented even after three years of coming into government. The pace at which State Governments are making competitive announcements for agricultural debt waivers, it seems that in the coming years, at least 2 lakh crores rupees would be spent on farm loan waivers. Even if half of this amount could be spent on provision of providing remunerative price for the farmers’ produce, they would not need any farm loan waivers in future.
Apart from this, it is absolutely essential to promote agricultural and allied activities and businesses in rural areas. ‘Amul Model’ of Gujarat is indicating that dairy can be a major contributor to the income of the farmers. Apart from this, many allied activities like poultry, mushroom cultivation and horticulture are absolutely essential for improving the condition of the farmers. Food processing in the villages, other small and cottage industries, can give additional employment opportunities to the farmers. The recommendations of the Committee constituted under the chairmanship of SP Gupta, then member of planning commission, need to be implemented so that sufficient rural employment opportunities are created along with encouraging production and earnings of the farmers.
(The author is Associate Professor, PGDAV College, University of Delhi)
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