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Wednesday, August 19, 1998

What is wrong with Indian agriculture? 

Sudha Passi  
New Delhi, Aug 18: Farmers' suicides, sky rocketing prices, declining food production, soil fertility... Is the country on the brink of an agricultural crisis? What is it that has stagnated growth in farm outputs?

A quarter of a century after India ushered in the green revolution, some agronomists hold the indiscriminate use of high yielding varieties (HYV seeds), chemical fertilisers and pesticides responsible for the problems and warn that entry of MNCs in the farm sector would spell further doom.

However, there are those who say that liberalisation will facilitate use of modern technology in agriculture, which is plagued by "structural problems.''

"There is a genuine crisis in Indian agriculture,'' says renowned agronomist and social activist Dr Vandana Shiva noting that government measures like subsidies and selective promotion of some sectors have benefitted only a few rich farmers.

"Increased inputs are no longer translating into increased outputs. There is decline in fertility of soils and rising debts are forcing farmers to commit suicides,'' says Dr Shiva who heads the research foundation for science and technology, an NGO.

But Jairam Ramesh, former advisor, Planning Commission, says "Indian agricultural is beset with structural problems which have to be addressed at the earliest.''

"Liberalisation in the industry is more important for agriculture as it would help in the import of technology,'' says Ramesh suggesting that large holdings and mechanisation can go a long way in making agriculture profitable.

"The situation today is not critical. But if we don't re- orient ourselves we'll land into a crisis,'' says minister of state for agriculture Som Pal.

Free trade or globalisation is a two way trend, argues Dr Shiva. While Indian exports in the years of liberalisation have made no great strides, in fact only declined, the entry of multi-nationals in the seeds, chemical fertilisers and pesticides sector has hit the Indian farmers hard.

Hard pressed to step up productivity in the face of declining soil fertility, the small farmers ended up incurring huge debts to buy expensive high yield seeds and pesticides. And when their crops failed, they committed suicides, she says citing recent reports from Punjab, Andhra Pradesh and Maharashtra.

Warning against emerging genetic engineering technologies and the "dangerous'' shift towards cash crops at the cost of foodgrains, Dr Shiva says that a new agriculture policy based on the sustainability of agriculture and survival of small and marginal farmers should be evolved.

In agreement to a new agriculture policy, Ramesh further suggests that government should follow an open trade policy, and not impose import curbs or give incentives for production of any particular crop.

India has decided competitive advantage in foodgrains. Yet incentives were provided for self-sufficiency in oil seeds to such an extent that over the last decade as much as 12 million hectares under cereal cultivation were diverted to oil seed production.

Assailing the state's policy in the past years for investing in floriculture and shrimps in its bid to boost exports, Dr Shiva says "it's neither efficient nor sustainable to grow shrimps, flowers or meat for export in India.

"In each case more food production capacity is destroyed domestically through diversion of resources and destruction of eco-system than the food that can be purchased from global markets.''

The government invested Rs 137 crore in floriculture infrastructure to promote its export, but earned a mere Rs 32 crore in return. India can buy only one fourth the food it could have grown with these export earnings, claims Dr Shiva.

In an open trade regime farmers would have benefitted more by exporting commodities they were good at and economically importing items like oilseeds, explains Ramesh. He also quotes agronomist Ashok Gulati who noted that farmers had benefitted when import production levels were reduced.

Shiva says cultivation of staple grains should be encouraged to ensure food security and stresses on the need for switching over to organic fertilisers to sustain soil fertility.

"How will India produce food for one billion people if we are not going to produce and where is the foreign exchange to buy the grains then?'' asks Shiva.

She also cautions that farmers should be thoroughly educated lest they get carried away by unrealistic promises of high yielding varieties.

Som Pal says food security is very important and it must be ensured even at high costs. There is an urgent need to make use of wastelands and distribute it among small farmers.

But developing wastelands is no easy task, given the gradual decline in public outlays in agricultural infrastructure at the cost of growth rate in subsidies.

With most of plan money funding subsidies in fertilisers, the state has little resources for spending on modernising programmes or on projects that could raise irrigation levels and bring more land under agriculture.

A whopping 63 per cent of the arable land is still rainfed, says Ramesh, noting that growth in productivity and yield is directly proportionate to the rate at which irrigation levels are going to raise.

"Slow pace of irrigation is indeed a serious constraint,'' says Som Pal suggesting that low cost watershed management projects be promoted.

According to Ramesh, long term benefits lie in investments in infrastructure, research, training and extension programmes that result in increase in productivity and yields.


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