Agriculture- Ought to or to be Out???

 Let us have a short overview on what we did in last few years in agriculture-
Today we have stock of around 47 Mn MT of wheat and rice and there is utter mismanagement in even storage of these commodities. The buffer norm says that the quantity should be 25 Mn MT in Jan and 32 Mn MT in July (peak). I don’t see any well and notable steps taken in this direction except to invent the issue of storage where these commodities are laying in open air to get perished.

In 2006 and 2007 we realised the shortage of wheat so we did buying at Rs. 920 a quintal whereas the MSP was Rs. 750 per quintal. Similarly in 2007-08 we purchased @ Rs. 1500 per qtl against an MSP of Rs. 1000.

In 2008-09, we exported 5.5 Mn tonnes of surplus sugar while in 2009-10, there was a shortfall in production of sugar and we ended up by importing 2.4 Mn tonnes of it.

One thing that eludes me is that why we become hypersensitive once we had bad experience in last few years? Why cannot we go rationally which works well in the interest of farmers and the country?

We end up in importing pulses and sugar, but we never try to find way to curb it. A proper buffer stocking in sugar and pulses are very essential when we know that replication of sugar production cycle is global phenomena.

The worst part is that we are unable to manage our produce in the price front. Taking the example of potato- in year 2008-09 the production stood somewhere at 26.5 Mn MT while the domestic consumption including seed requirement were 30 Mn MT. The production in 2009-10 stood at 32.7 Mn MT while the requirement was somewhere at 31.7 Mn MT. Just 20% more production has made the price to fall by over 50% and farmers were not even able to get their cost of cultivation incurred thereof. Where the strategy went wrong??? It seems better that farmers should have left even 10% of potato in the field so as to increase the demand and leave the production in deficit part just to take advantage of price.

If we see the average increment in production from 1991 to 2007, the overall developing nation has increased its production to the extent of 95% while India recorded 88% in the same duration. Why??? Are we worse than the average developing countries??? We don’t have answer neither the solution if we cannot check the market forces and improve our infrastructure. We cannot blame farmers for not adopting the high quality seeds and superior technology until we cannot win their sentiments by assuring them to return at least the cost of cultivation incurred for the honest effort put by them therein.
Horticulture sees no solution in higher production, rather in proper management of its supply chain and storage facilities. 20-30% of wastage in horticulture accounts for its shortfall and rise of price. Government need to invest heavily in adding infrastructure for supply chain, cold storage and warehouse. The second option could be to hold the hand of organised retail. Although it will be a gradual process as organised retail constitutes less than 5% of total business. But one thing is for sure that it will minimise the wastage and increase the efficiency of market. Contract farming is another way for restricting this wastage but loopholes are always there which makes it difficult.

Future market is another solution to great extent to increase the efficiency of market. It can regulate the price in better way and can be the best solution for farmers. But every time if there is shortage the trade at future markets are either restricted for that commodity or else restriction is on volume of stock traded. Given the chance the private sector can play major role in enhancing the agricultural practices and hence production but apprehension of government brings them at dark resorts.


A thought is yet to be started on our agriculture policies and infrastructure. A judicious step need to be taken while deciding the MSP, Export, Import and maintaining the buffer stocks. Need to work in the direction of production cycle and price determinants.

What we exactly ought to do now or should we consider ourselves out of the competition when it comes to trade at the world market?

Are we really self sufficient to feed our population and meet the increasing demand and is it enough for any emerging nation? Find answer of ought to or else get ready to be out!!!

"There seem to be but three Ways for a Nation to acquire Wealth. The first is by War as the Romans did in plundering their conquered Neighbours. This is Robbery. The second by Commerce which is generally Cheating. The third by Agriculture the only honest Way; wherein Man receives a real Increase of the Seed thrown into the Ground, in a kind of continual Miracle wrought by the Hand of God in his favour, as a Reward for his innocent Life, and virtuous Industry."    ----- Benjamin Franklin
 


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