Showing posts with label Indian Agriculture. Show all posts
Showing posts with label Indian Agriculture. Show all posts

Agriculture a story of neglect in the UPA Government


Low agriculture Productivity India

India’s has one of the largest  arable land  which is second only to that of the United States, its economy is one of the fastest growing in the world, and its industrial innovation is legendary. India ranks second worldwide in farm output.  Agriculture and allied sectors like forestry , logging and fishing accounted for 15.7% of the GDP in 2009–10, employed 52.1% of the total workforce, and despite a steady decline of its share in the GDP, is still the largest economic sector and a significant piece of the overall socio-economic development of India. But when it comes to agriculture, its output lags far behind potential. The Agrarian Indian Economy needs long term planning, positive thinking and Governments active dynamic participation. .
Yields per unit area of all crops have grown since 1950, due to the special emphasis placed on agriculture in the five-year plans .  The Green Revolution introduced high-yielding varieties of rice and wheat, expanded the use of irrigation, pesticides and fertilizers, and transformed the northwestern plains into India’s breadbasket. Between 1968 and 1998, the production of cereals in India more than doubled. But since the 1980s, the government has not expanded irrigation and access to loans for farmers, or to advance agricultural research. Groundwater has been depleted at alarming rates. However, international comparisons reveal the average yield in India is generally 30% to 50% of the highest average yield in the world. India’s rice yields are one-third of China’s and about half of those in Vietnam and Indonesia. With the exception of sugarcane, potato and tea, the same is true for most other agricultural commodities
The low productivity in India is a result of the following factors:
According to World Bank, Indian Branch: Priorities for Agriculture and Rural Development", India's large agricultural subsidies are hampering productivity-enhancing investment. Overregulation of agriculture has increased costs, price risks and uncertainty. Government intervenes in labour, land, and credit markets. India has inadequate infrastructure and services.World Bank also says that the allocation of water is inefficient, unsustainable and inequitable. The irrigation infrastructure is deteriorating. 
With a population of just over 1.2 billion, India is the world’s largest democracy. In the past decade, the country has witnessed accelerated economic growth, emerged as a global player with the world’s fourth largest economy in purchasing power parity terms, and made progress on most of the Millennium Development Goals. As of 2005, according to World Bank statistics, 75.6% of the population lives on less than $2 a day (PPP), while 41.6% of the population is living below the new international poverty line of $1.25 (PPP) per day. However, data released in 2009 by the Government of India estimates the percentage of the population living below the poverty line to be 37.2%,, making India home to one third of the world’s poor people. The rural areas are still home to some 72 percent of the India’s 1.2 billion people, a large number of whom are poor. Most of the rural poor depend on rain-fed agriculture and fragile forests for their livelihoods. A long and inefficient supply chain means that the average farmer receives less than a fifth of the price the consumer pays, a World Bank study found, far less than farmers in, say, Thailand or the United States. 
The problem has grown so dire that Prime Minister   Manmohan Singh has called for a Second Green Revolution “so that the specter of food shortages is banished from the horizon once again.” And while the PM worries about feeding the poor, India’s growing affluent population demands not only more food but also a greater variety. But the policy makers of modern India have failed to recognise and realise, the basic ingredients for agriculture and what are its inputs. By sitting in AC rooms plans cannot be made for the peasants and poor agriculturist i.e. the AAM ADMI, which constitute 52.1% of the total Indian workforce.  
There can be no Green Revolution without adequate irrigation and fertilizer, which is consistently deteriorating due to the faulty policy of the Government. The Current Budget has given nothing to the Agriculture and there is little emphasis in this direction. In fact the fertilizer subsidy for the year 2011-12 has been pegged down (at Rs. 49,998 crores) , which is lower than the revised estimates for 2010-011 (Rs. 54,976 Crores). With inputs for major fertilizers pegged to oil- linked inputs such naphtha, LNG and Ammonia the recent announced rates of subsidy for Complex fertilizers for 2011-12 already fall short. CRISIL Research, India’s leading Rating, Research, Risk and policy Advisory Company reports that the revised nutrient subsidy rates announced by the Govt. Of India on 9th March 2011 in order to compensate with the sharp increase in fertilizer and feedstock prices is unlikely to help the Companies as international prices have increased drastically specially phosphoric acid. For example the total realization (sum of subsidy plus retail price) at revised benchmark for DAP comes to about $ 630 per tonne, while international price is about $ 690 per tonne (landed cost). Thus the domestic companies lose a net $60 per tonne as per the current announcement. Hence it is expected that the Govt. would hike the prices of fertilizers after May this year after the assembly elections , which would add to the food price inflation.
Irrigation facilities are inadequate, as revealed by the fact that only 52.6% of the land was irrigated in 2003–04, which result in farmers still being dependent on rainfall, specifically the Monsoon season. A good monsoon results in a robust growth for the economy as a whole, while a poor monsoon leads to a sluggish growth. Farm credit is regulated by NABARD, which is the statutory apex agent for rural development in the subcontinent. At the same time overpumping made possible by subsidized electric power is leading to an alarming drop in aquifer levels. India receives an average annual rainfall of 1,208 millimetres (47.6 in) and a total annual precipitation of 4000 billion cubic metres, with the total utilisable water resources, including surface and   groundwater , amounting to 1123 billion cubic metres with Total utilizable ground water resources  433 BCM . 546,820 square kilometres (211,130 sq mi) of the land area, or about 39% of the total cultivated area, is irrigated. The globally-averaged annual precipitation is 990 millimetres (39 in). Cherrapunji, situated on the southern slopes of the Eastern Himalaya in Shillong, India is one of the wettest places on Earth, with an average annual rainfall of 11,430 mm (450 in). The 38-year average at nearby Mawsynram, Meghalaya, India is 11,873 mm (467.4 in).  State wise there is a disparity of rainfall, wherein most of the North-eastern states of the country including West Bengal  having a average rainfall of 1,881 to 2,818 mm per year and the south-western region of Kokan and Goa 3,005 mm,  Kerala 3,055 mm and costal Karnataka 3,456  having the highest rainfall and the North western region of Delhi, Haryana, Punjab, Saurashtra and Kachchh recording around 600 mm of rainfall, the lowest being that of West Rajasthan which records an average of 313mm per year. As per Central Water Commission - An apex organization in water resources development in India, the estimated utilizable surface water resources is 690 BCM with a Natural Runoff of 1986.5 BCM. There are 12 Major river basins ( catchment area > 20,000 sq. km)253 M. ha  and 46 Medium River Basins (catchment area < 20,000 sq. km.) 24.6 M. ha. The ultimate irrigation potential is 140 M. ha. with a Gross irrigated area  in the year 2003-04 was 75.3 M. ha. , Net irrigated area as on (2003-04) was  55.1 M. ha.      
India's inland water resources including rivers, canals, ponds and lakes and marine resources comprising the east and west coasts of the Indian ocean and other gulfs and bays provide employment to nearly six million people in the fisheries sector.In 2008, India had the world's third largest fishing industry.  Between 1980 and 2002, the government continued to heavily subsidize fertilizers and food grains for the poor, but reduced its total investment in agriculture.  In the IX plan outlay (1997-2002) the NDA Govt. under the leadership of Atal Bihari Vajpayee increased the Plan out lay of Creation of Irrigation Potential from Rs. 21,072 Crores to Rs. 48,259 Crores for 4.09 M.ha and thereafter in the X Plan (2002-2007) there was a provision of Rs.70,862 Crores to create a potential of 9.93 M.ha. under irrigation, but the scheme was dropped by the UPA Govt. for cheap vote catching Social sector spending in NREGA and Subsidised foods for BPL families. Hydropower potential assessed by the Central Water Commission   was (as on 31.03.06)  84044 MW @ 60% LF , with an Installed capacity (2004-05)  30942 MW  and Potential developed as on 31.03.06  16032 MW @60% LF.  Public spending on farming shrank by roughly a third, according to an analysis of government data by the Center for Policy Alternatives in New Delhi. 
However the importance of irregation is still not understood by the people in the ministry and the plan outlay to irregation is increased to Rs. 404.29 cores in 2011-12 from  Rs. 265.5 crores , against a total plan outlay of Rs.14744.14 crores in 2011-12 given to agriculture and other activities.The total plan outlay of the  UPA II  Govt is  Rs. 592456.99 crores for 2011-12 and the share of agriculture and other activity in it is just 2.4%  which speaks about the neglect to the agriculture policy of the government.  This is against the total plan allocation on Social Sector which is Rs. 1,60,887 crores , an increase of whopping 17 %  and is 36.4 % of  the total Plan allocation.
Today Indian agriculture is a double tragedy. “Both in rice and wheat, India has a large untapped reservoir. It can make a major contribution to the world food crisis,” said M. S. Swaminathan, a plant geneticist who helped bring the Green Revolution to India. 
India’s own people are paying as well. Farmers, most subsisting on small, rain-fed plots, are disproportionately poor, and inflation has soared past 11 percent, the highest in 13 years. The Primary Article Inflation for the Financial year ending Feb 11 was 17.8 (base year 2004-2005) of which food articles Inflation is 15.9 as per Data released by CRISIL research. The average WPI inflation for April-February 2010-11 stands at 9.2 per cent.  The Peterson Institute for International Economics in Washington says changes in temperature and rain patterns could diminish India’s agricultural output by 30 percent by the 2080s. 
The inherent strength of the country economy depends upon various factors, which includes its people their structure, culture and habits, the geographical structure and Area, climate and natural resources (mineral, agricultural, vegetation, and climatic) and the religious and other important fundamental factors. If these adversaries/ shortcomings or resources which are deficient/disadvantageous in for some respect, if turned the other way and employed most effectively by proper employment of factors of production, may become a countries strength. Success is failure turned upside down, every shortcoming’s, strength and deficiency has some inherit advantages also and gives ample scope/ room for turning them into success. In fact a country, which employs its resources and shortcomings by converting it into their strength, is the most economically prosperous and developed.Our great Saints discovered, explored and researched with the rich natural resources and heritages of this great Land/nation and formed and applied their thoughts into action and way of life. Our great rivers, which irrigated and fed our people, gave life to the rich vegetation and flora, were worshiped. Saints hence discovered the important of our seven great rivers named and worshiped them, and formed temples and civilisations on their Banks. Hindu rituals and worship’s was incomplete without the water of these great rivers.  The NDA Govt. had brought schemes to link major rivers of the country so that the country is self sufficient in matter of irrigation and water. And the AAM ADMI i.e. the rural work force become self-reliant and does not depend on the Govt. for the Subsidised food and grains. This schemes had it been implemented, would had generated employment, produced electricity, food and farm products and made India self reliant, strong in many respects.  We do not need an Indian common man to be dependent on cheap Subsidised grains given by Governments, but a self-reliant strong India having water in every farm and work for every man.
.                                             Concept Idea and written by V.K.Singh
                                             Executive Member to
                                                  BJP National Trade Cell N. Delhi