Dr. Sudhakar Dwivedi
Another Farm Loan Waiver of about Rs 8000 Crores announced by Rajasthan Government just before elections for Legislature. The need of the farm loan waiver cannot be different than the simple answer i.e. pre-poll declaration. There may be much suitable ways to tackle the issue of credit disbursement for indebted rural elites. Further these ways of credit disbursements had to equally address the other pre-requisites such as empowerment of farmers financially and socially of course. The case of Prem Singh from Bundelkhand and Ram Sharan from Barabanki, Uttar Pradesh are mere examples of enterprise based farming in which all the suggestions and lessons from Agriculture Sciences, Horticulture and other allied activities are followed in much effective and practical manner. The concept of Crop Rotation and Multiple Cropping (CRMC) are part of modules in training programmes since long time, still masses are not adopting these cultivation practices barring few progressive farmers.
Crop Failure and waste
The sacrilege bumper crop of potato this year and tomato last year saw the same fate and almost every year farmer becomes victim of mass cultivation without going after the nature of soil, demand and supply forces in contemporary market situation and basics of Agricultural Risk Management. Nevertheless, farmers are rarely aware about post-harvest management of output and inter related losses. According to a report there will be 9.1 billion people in the world by 2050 consuming almost 70 percent more than that of requirement today. Ironically almost one-third of the food produced is lost globally during postharvest operations every year. Adequate and timely allocation of cultivation of crops is in fact utmost desirable thing for making farms suitable for business and dynamic market equilibrium, where banks and regulator both are at advantage in terms of interest and tax revenue.
Inclusive Farm Management
Layout Planning and Facility Based Layout (FBL) for farms adapting Inclusive Farm management Model (IFM) is recommended for farmers making them more business oriented and converting Liabilities into Assets. To understand the layout planning there is seldom any need of formal training of the farmers. Indian People are accustomed to the farming practices in the society or family based inclusive farm and village ecosystem. Agriculture and Allied Activities are present around cultivable fields traditionally to maintain dynamic balance among various inputs and outputs of different economic activities. In current scenario of the expansion of urban centres and reduction of cultivable land, proper layout planning based on inclusive farm management is desirable.
The farming practices have active and desiccate inputs and outputs. Being inclusive and independent farm ecosystem the input of a plant is taken from output of neighbor enterprise. For Example, Vermi compost is an effective source of manure for soil enrichment, the waste material of winnowing is feed for livestock. Providing inputs for various small activities at farm require interwoven facility based layout planning. Progressive farmers are adapting themselves and are successfully engaged in business with the help of banks.
Business and Banks
The sanctity of farm loan waiver is under question since biggest ever waiver announced by then United Progressive Alliance (UPA) Government in 2009. Waivers are popular as pre-poll gimmicks to woo farmers giving them superficial relief from paying off debt. However, vicious circle of debt and poverty again pull farmers in the same situation. So this cannot be a solution to save farmers from suicide. The strong and time based analysis is needed to understand what the requirement of farmer and banks are. Banks wish to have business for which various schemes are launched by them for consumers and of course farmers and rural elites are one of the most eligible customers. On the other hand farmers engaged in subsistence farming have pre-requisite of funds for inputs and other socio-economic needs. Consequent to this, banks lure farmers for easy sub-lime loan for livestock, agricultural implements and other input requirements. Rural community being at the last strata of social pyramidis psychologically bound to spend money for rituals, family responsibilities and social taboos even if there is no income. The undesirable expenditure results in vicious circle of non-payment of loans. Here onwards farmers are forced to take new loan to pay old debt thereby getting debt-ridden. In India marginal farmers seldom have the financial security and are the victims of loans, crop failure and poverty. Still, farming practices suggested by scientists and experts are not adopted. In such a gloomy scenario only business and growth can pull both parties out of the environment of no economy. Banks will lend money only for projects pertaining to crops, enterprise and venturing. To avoid Non Performing Assets (NPAs) Banks have to join the venture on board for monitoring the progress as these banks are doing in case of corporate giants. System has to be in place to recognize farm as business entity.
Banking Functions and Farming Business
In the recent past the success stories of progressive farmers from many poor states have revealed the secret of farming business. Problem cited is to involve all the stakeholders in the mission. Till date banks function to offer loans and maintain accounts of customers. For the Current Accounts & Savings Accounts (CASA) banks have single strategy for all i.e. rural as well as urban low strata customers. Banks have to adopt 5 ‘E’s (Engage, Empower, Eliminate, Earn and Entity) strategy for rural elites. Engage Rural folks, empower them to take initiative, eliminate basic financial unproductive hurdles, make them earn little with small investment in lesser time and give them confidence to stand up as an entity (branding).Districts Industries Centre (DICs), Krishi Vigyan Kendras (KVKs) and other agencies may complement each other utilizing laid down channels of Panchayati raj Institutions (PRIs). ‘Make in India’, ‘Start Up India’, ‘Digital India’ and ‘Skill India Mission’ are sufficient for 5 ‘E’s (Engaging, Evolving, Emanating, Enterprising and Enhancement) for farmers.
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