May 17: The new agriculture policy will be tabled by the BJP government in the forthcoming budget session of parliament. Postponed time and again, the policy is expected to come up with mechanisms to help farmers to maximise their profits. Minister of state for agriculture, Som Pal, who has played a major role in the policy formulation, spoke to The Financial Express about the thrust areas.What are the provisions contemplated for ensuring timely credit to farmers?
The policy proposes to enhance credit flow to farmers substantially by doubling it in the next few years. We have asked the finance minister to increase it to 30 per cent from the existing 18 per cent in this budget itself. To ensure timely credit, there will be a provision in the policy to punish erring banks. Further, 60 per cent of the developmental fund will be allocated to the rural and agriculture sector once the policy gets a nod from the Parliament. A sum of Rs 75,800 crore will be set aside for the agriculture sector inthe next five years. The farmers will be issued cash credit cards and they will get access to the schematic lending facility.Will there be a change in the interest rate charged from farmers on bank loans? Interest rate is not a problem as farmers already pay a higher interest rate to mahajans. It is the lack of timely help from banks which forces them to go to these lenders. Timely credit at an interest rate of 18-20 per cent will solve a lot of problems faced by them.
What is the growth target?
A 25 year perspective plan has been drawn to stimulate an agricultural growth rate touching 4.7 per cent per annum. The idea is to double the food production in a period of 10-15 years.
What is being done to save farmers from distress sales?
The prevalent marketing system in the country is against agriculture where farmers do the hard work and middlemen reap most of the profit. We are proposing a new system of fixing prices which will change this system. Based on a study on price hikes effectedin the last 40 years, the system proposes that a minimum price should be fixed for each item and if the price of a particular item goes up substantially, the government should provide subsidy to the farmers by fixing a minimum procurement price. The idea is to come out with a market system which will do away with middlemen.
Lack of storage facilities like godowns is a severe problem in villages. Is any thing being done to solve the farmers storage problem?
A chain of godowns will be set up in the rural areas. The farmers will be allowed to obtain receipts and credit from banks in lieu of their stock. The godowns in the cities will also be shifted to the rural areas.
What can be done for a sustainable and long-term effective use of agricultural land?
Out of 328.9 million hectares of land in the country, only 144 million hectare is cultivable. There is still around 80 million hectare of land which can be utilised -- half for agriculture and the other half for afforestation.
Today, about178 million hectares of total land is subject to degradation and top soil erosion is taking place at a fast rate. We will come out with a scheme to optimise the use of land and to reclaim degraded land. On the basis of the amount of rainfall they receive, the whole agricultural land will be divided into five regions: hill areas, north-eastern and eastern region, parts of south India, semi-arid and arid. There will be area-specific strategies for each region which will give maximum emphasis on crop pattern and watershed management technologies.
Will the new policy favour a capital-intensive modern technology which will displace labour? How will you strike a balance between the two?
Green revolution so far has touched only 37 per cent of agricultural land. Now our stress will be on the remaining 63 per cent. About 63.4 million hectare of land will be brought under watershed management. The stress will be on integrated system of cropping pattern and other activities associated with agriculture such asdairy and poultry. An integrated agriculture pattern will be able to make up for the losses made in other areas. To support all these activities, a separate Agriculture Technology Management Agency (ATMA) funded by WHO will become operational soon.
What will be the policy on use of fertilisers and the restrictions imposed on the movement of food items?
The concentration will be on maximum use of indigenously developed and locally available technologies and genetic formulations and minimal use of fertilisers. Conservation and promotion of genetic materials available in the country will be one of the priority areas. A crop germ plan will be developed soon. The new policy will also remove restrictions on agro-based industries.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
