The agrarian sector on the boil

Hari Jaisingh

How come ruling e s t a b l i s hme n t s , whether belonging to the BJP or the C o n g r e s s , invariably wake up to pressing problems only when the situation reaches a flash point? This is the pattern in Indian politics the country has been witnessing for decades. The same shades of dubious politics were seen in Mumbai on March 12. When a sea of agitating farmers

swamped Mumbai and pressure mounted, the BJP-led government said 'yes' to most of the farmers' long-standing demands, including their right to cultivate forest land and extension of farm loan waiver to those who had borrowed loans between 2001 and 2008. Chief Minister Devendra Fadnavis met a team of the Leftaffiliated All India Kisan Sabha (AIKS) that led a 180 – km march from Nasik to Mumbai, and told the Vidhan Sabha that the state

Devendra Fadnavis government was "sensitive and positive" to the demands of farmers, many of them tribals in pitiable conditions. The Chief Minister has promised financial aid to tribals with serious health problems, minimum support price (MSP) for farm produce, and approved 31 water conservation projects in the state's tribal north and Nar-Par, Daman Ganga and Gimar river linking project.
Devendra Fadnavis deserves compliments for the belated response to the farmers' demands.

M S Swaminathan However, my point is: why he should have the neglected the farmers' distress signals for long, especially when their suicide cases were hitting the headlines on a regular basis? Herein lies the political leadership's tragedy across states – Uttar Pradesh, Maharashtra, Rajasthan and Punjab. They have come out with their own versions of farm loan waivers without attending to the basic problems farmers are faced with.
As it is, there are serious gaps between what is officially claimed and actual crop loan disbursements from banks from April 2017 to February 2018, which is 40.3 per cent below the amount for the corresponding period of 2016-17. Also, the credit crisis in the state underlines the harsh fact of virtual collapse of institutional credit system. This could push farmers further into the clutches of private moneylenders. Not a happy situation indeed!

Professor M S Swaminathan, author of the National Commission on Farmers (NCF), in his report had given several vital recommendations long back. But the Narendra Modi government did a complete volte-face on his suggestions. It did not bother to give Minimum Support Price for pulses and oilseeds. Nor did it respond to farmers' demand of "complete and unconditional loan waiver".

Professor M S Swaminathan, author of the National Commission on Farmers (NCF), in his report had given several vital recommendations long back. But the Narendra Modi government did a complete volte-face on his suggestions. It did not bother to give Minimum Support Price for pulses and oilseeds. Nor did it respond to farmers' demand of "complete and unconditional loan waiver".

In any case, Professor Swaminathan does not see farm loan waiver as a solution to challenges being faced by farmers. Says the internationally renowned authority on agriculture: "The demand for loan-waiver is indicative of non-viability of farm economics. Every step should be taken to make farming economically viable".

He told Ravish Tiwari of Indian Express: "I am sorry to say that very simple and short-term strategies like loan waiver is not the best way to tackle the distress of the farming sector", and added, "loan waiver is only an easy way to get a new farm loan. But writing off does not guarantee repayment of the next loan unless farming is made viable"
Prof Swaminathan is right. Not that he is out and out against loan waiver but he wants it to be part of "a strategy to revive the economic health of farming". He has underlined the need for special attention towards technology, trade and trainingrelated requirement of the farming sector to "shield farmers from the grim situation they face".
Interestingly, terribly worried that farmers' unrest may spill into an election, the Modi government in its February Budget did initiate some measures on fixing minimum support price for two dozen commodities on the cost plus 50 per cent basis. It has also asked the Niti Aayog to frame "a mechanism" to ensure farmers get minimum support price "in the eventuality of prices crashing".

Narendra Modi Still, I am disappointed by a half-hearted approach of Prime Minister Modi in an area which is the life-line of the national economy. Though the Swaminathan Commission was set up by the UPA regime, it did not do much to implement its crucial decisions. In its 2014 electoral manifesto, the BJP promised to do so. In fact, it lifted large chunks from the Swaminathan report. But then, the ruling party has proved to be no different from the previous UPA regime.
Actually, "public investment" in agriculture and related areas has fallen as a share of public spending, and the promised "increase in crucial related areas are nowhere in evidence". There are also serious loopholes in the Prime Minister's crop insurance scheme.

The writing on the wall is crystal clear. The by-election results in UP and Bihar are warning signals to the ruling establishments. Prime Minister Modi must realise that the agrarian sector today is under stress in view of low growth, poor earnings, large-scale internal migration and high rate suicides of farmers.

It is worth recalling some of the crucial recommendations of the Swaminathan Committee. It suggested extensive land reforms, including distributing ceiling surplus and waste lands, prevention of diversion of prime farm land and forest to the corporate sector for nonagricultural purposes and ensuing grazing rights and access to common property resources.
Its emphasis was on public investment, especially in irrigation, drainage, land development, water conservation and promotion of conservation farming and bio-diversity. It also suggested comprehensive ground water and surface-water management in order to give farmers sustained and equitable access to these resources.

Today's policy-makers need to acknowledge their own disconnect from the farmers' distress signals from the ground. They need to coolly reflect on their failures and take remedial measures in tune with the wisdom and experience of farm experts like M S Swaminathan. The focus of regulatory policies has to be on raising the profitability of farm production, which, in turn could lead to higher investments and further raise farm productivity. Equally crucial is formal credit outreach to the poor and the needy in rural areas and reduction in interest rates on institutional loans to simple 4 per cent.

It also needs to be kept in mind that farmers reeling under dry spells or sudden hailstorms that destroy crops are provided prompt compensation for the losses. Technological interventions that give farmers timely advice on weather and update them about sowing and harvesting time and extension services can also help farmers from weather-related misfortunes.

Equally crucial is livestock rearing which has saved farmers from penury. It is now under threat from cow vigilants who are allowed to run riot in the states ruled by the BJP. This has to be stopped. What farmers need is a human touch.

Finally, the most disquieting aspect of the farm crisis is poor investment in agricultural R & D. It is not even 0.4 per-cent of GDP. The writing on the wall is crystal clear. The by-election results in UP and Bihar are warning signals to the ruling establishments.
Prime Minister Modi must realise that the agrarian sector today is under stress in view of low growth, poor earnings, largescale internal migration and high rate of suicides. So, the farmers' distress has to be attended to on a war footing. Otherwise, it might prove farmers' to be the nemesis of the BJP establishments at the Centre and in the States. It is time the Prime Minister attended to domestic problems instead of frequently hopping from one foreign country to another!