The Centre is set to frame an agriculture policy for the first time. The proposed policy is under the consideration of various states. If the centre has its way, the policy may materialise in the budget session of Parliament itself.The Confederation of Indian Food Trade and Industry (CIFTI), a wing of the apex body of FICCI, has its own priorities on the focus of the proposed agriculture policy.
In an interview with The Financial Express, CIFTI Secretary-General Vijay Sardana says it is high time Indian agriculture system shifted from the mindset of supply orientation to market orientation. Excerpts from the interview:
On wild fluctuations on the price front: Commodities like fruits and vegetables in the country have seen wild fluctuations over the past year or so. In most cases the price increases have been four to five times or even ten times compared with the previous year. Fruits and vegetables, which were sold at around Rs 30 to Rs 40 or more per kilogramme in 1998, are a casein point. In spite of this massive price increases, the farmer has not been getting any better deal. It is only the middlemen who are making a fast buck.
There are various factors behind the increase in prices including diseases which often lead to crop failures, improper agriculture practices, negligence of district agriculture officers and lack of coordination between states and central agencies.
Secondly, because of uncertain market position, farmers are not in a position to decide on their inputs including fertilisers and pesticides. Without any assured return they are not encouraged to use the best available inputs for their produces.
Thirdly, banking system does not extend credit for agricultural purposes when it is most required by farmers.
No wonder such systemic failures have been prompting farmers to commit suicide even after fifty years of independence.
On low productivity of Indian agricultural system: Productivity of Indian agricultural produces is among the lowest when comparedwith global standards. For instance, while India produces four tonnes of garlic per hectare, Egypt produces 21 tonnes of garlic per hectare. Likewise, while India produces 15 tonnes of tomato per hectare, the Netherlands produces a mind-boggling 450 tonnes of tomato per hectare.
A CIFTI study has shown that Indian agricultural produces are 600 to 800 per cent below most standards compared with the best in the world.
If the Indian farmer has to survive in the WTO regime, there is no option but to improve agricultural productivity. Otherwise, we will not be in a position to improve our gross domestic growth and agricultural exports. On the contrary, Indian farmers will lose their basic livelihood as supply position will be taken care of by imports.
There are only about a thousand days left for the WTO regime to take effect. Indian agriculture policy will have to take into account these main factors like market orientation, productivity increases and good return for the farmer.
On market orientationof agriculture policy: With the Centre committed to remove quantitative restrictions (QRs) on various imports under the WTO regime, focus will have to shift from the present supply orientation of the system to the one of market orientation. Supply position will in any case be taken care of by imports once QR regime eases as required under WTO. So the Indian government's focus will have to shift to market orientation of Indian farmers' produces. Focus will also have to be sharp on the productivity front where the Indian system is lagging far behind the rest of the world.
On the role of food processing industry: A great deal of attention will have to be given to the food processing industry in the agricultural policy. For instance, when fresh tomato is selling at Rs 40 a kilogramme, if the Indian fruit and vegetable processing industry is strong enough, the consumer can go in for processed tomatoes in the form of purees and ketch-ups which will be comparatively cheaper than fresh tomatoes. If astrong processing industry presence is there in the country on a wide scale, farmers will never be afraid of losing because the produces will be absorbed by the processing industry. Even if the quality of the tomatoes or apples are of a lesser grade, the processing industry can absorb the produces whereas poor quality fruits and vegetables will not have ready acceptance at the consumer's level.
In view of this there has to be a time-bound commitment from the government to develop agricultural infrastructure like cold storages, warehousing system, sorting, grading and packing at the farm level. This will help reduce wastage and the farmers will get better price because of properly graded produces. It is imperative that the agricultural policy treats agricultural processing activities on par with agriculture itself because the processing industry provides the major outlet for the produces.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
