Dr MJ Khan
Deep resentment is prevailing among farmers in many states in the country over a plethora of problems. Their sense of dissatisfaction is evident from many forms of agitations that have been reported from different parts of the country. Although the crops have been cultivated and the immediate trigger behind the agitation may vary, the underlying cause of farmers’ discontent is, however, uniform across the country.
A bountiful rain in 2016 that followed two consecutive drought years raised the expectations of a bountiful harvest, which was indeed realised. However, the prices plummeted which did not help farmers to salvage themselves from the debts accrued in the previous season owing to poor monsoons. This forced farmers to take to streets demanding support from the government. Loan waivers by a few states made matters worse and demands for similar relief erupted all over among farmers. Besides this, farmers are plagued perennially with problems of lack of infrastructure, poor knowledge of market demands, price fluctuation, and dependence on monsoons, among other factors.
Renewed emphasis must, therefore, be laid to evolve strategies that can address these issues of the farmers in the long run. The starting point could be assuring a decent income for farmers which, in fact, has been persistently emphasised by the current government in power at the Centre. As recommended first in 2006 by the National Commission on Farmers (NCF) headed by the eminent agricultural scientist, MS Swaminathan, the minimum support prices (MSP) for crops must be fixed at levels of at least 50 per cent more than the weighted average cost of production which has the potential to enhance the profitability in agriculture, by ensuring a minimum of 50 per cent profits over the cost of production.
Easily accessible procurement centres can to some extent help farmers especially those whose storage capacity has been minimal. Building block- level banks for grains, vegetables and pulses can thus ensure Effective Procurement and Market Price stability.
Similarly, geo-tagging of all farmers’ fields can help in arriving at accurate production estimation data which can help in timely planning and needful market interventions.
Operating future markets across for all farm produce can be considered as another effective strategy for offsetting the uncertainties associated with price fluctuations of agricultural commodities. Future contract route helps farmers to decide on a trade for a standing crop at a future date at a price agreed before the harvesting takes place. This is a suitable instrument to offset risks associated with price dip taking place during peak harvest seasons. Farmers with their regular acquaintance with forward markets can understand the price trends for a particular agricultural commodity at a commodity exchange and they can decide on the sowing pattern.
Establishing national network of Panchayat- level Rural Growth Centres is a prospective strategy to develop village level agri-businesses and connect farmers with information, institutions, banks, technologies and markets.
Renaming the farm ministry as the Ministry of Agriculture and Farmers Welfare was done but has anything changed at the Ministry in terms of working, or policy orientation?
Moving beyond that initiative, a department of Farmers’ Welfare can be created under the Ministry of Agriculture. This will ensure to keep farmers in focus while formulating plans and schemes.
(The writer is Chairman, Indian Council of Food and Agriculture, New Delhi)
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