Agriculture Agriculture Policy
Farm policy fails to address key issues
A two-day seminar held recently in Mumbai brought together policy makers, bureaucrats, social workers, farmers, journalists, activists and researchers. Scrutinising farm policy in depth, they said that policy had failed to address some of the main challenges, reports Aparna Pallavi.
The recently declared Farmers Policy of the central government came up for strong criticism from all sides during a seminar held on 9-10 February in Mumbai. Speakers from various fields - policy makers, bureaucrats, social workers, farmers, journalists, activists and researchers - opined that the policy failed to address some of the main challenges before Indian farmers at this point of time. Focus On Global South, an NGO, organised the event.
Speakers criticized the misplaced policy emphases on reducing people’s dependence on agriculture and encouraging corporate farming, and demanded that farmers be given direct income support apart from loan relief and revival of indigenous and sustainable farming practices should receive subsidy support from the government. Speakers also condemned government policy which allowed large scale transfer of agricultural land to corporates in the name of development.
Dr Avinash Shirke addressing. Afsar Jafri and Dr V Gandhimati on the dias. Pic: Aparna Pallavi.
Apart from policy issues, speakers also emphasized that policy or no policy, farmers in the country will have to find their own ways to survive and also to find their way back to sustainable and farmer-friendly farming practices destroyed by mechanisation and modernization of farming.
Removing people from land: But how?
The first point on which the policy came for severe criticism is its unashamed emphasis on moving people out of the agriculture sector in the name of reducing dependency on agriculture. Speakers opined that such a leaning simply showed that the government was playing into the hands of financial manipulators like the World Bank, who wish to destroy India’s agriculture.
Said former finance secretary and convener of the Indian People’s Campaign Against WTO, S P Shukla, “The policy does not even talk about the 10,00,000 hectares of land that is being transferred for non-agriculture purposes every decade. It does not talk about the suicides happening in the farming community as a result of land loss. Instead, it talks about shifting a 240 million strong work-force to urban sectors, which at the present rural to urban migration rate of 6 lakh people per year, will take 384 years. You call that planning?” Shukla was finance secretary during prime minister V P Singh’s tenure and commerce secretary during prime minister Chandra Shekhar’s tenure.
“In the US, they pay farmers compensation for even leaving their lands fallow, so why, in India should farmers not be paid for the work of producing food for the people and inputs for industry?”
• Protect at home, preach abroad
Devinder Sharma, well-known journalist on agriculture issues, asked how the policy-makers could hope to shift 60 crore people out of the agriculture sector in any sustainable fashion in an era of jobless growth. “No country can dream of driving people out of any sector on such a stupendous scale,” said he.
Economist Jaya Mehta pointed out that while the policy did talk about moving people out of agriculture, it did not specify as to where these people were to be moved. “Where can you rehabilitate 59 per cent of the population?” said she, “Given the growing unprofitability of farming, would these people not have moved out on their own if there were space for them to move out at all?”
Going west, but half way
While speakers unanimously slammed the government for its relentless ‘go west’ policy, which encouraged chemical-intensive and unsustainable farming practices, causing permanent damage to Indian soils and natural resources, they also argued that if the government is still committed to this model of agriculture, they should not just take half-measures, but go the whole way by also providing sufficient farm subsidies and direct income support - which is now the done thing in the West.
“Whenever the issue of financial relief to farmers is brought up, politicians think only in terms of loan relief,” said N D Patil, leader of the Shetkari Kamgar Paksha, “Why don’t they talk about production-cost based price? In the US, they pay farmers compensation for even leaving their lands fallow, so why, in India should farmers not be paid for the work of producing food for the people and inputs for industry?”
R L Pitale, former member of the National Farmers Commission, said that even a small amount like Rs.25 per farmer household per day would go a long way in ensuring financial stability and prevent extreme reactions like suicides.
Most speakers, however, felt that the direct income support option should be used to encourage farmers to return to sustainable farm practices. Pitale pointed out that in the UK, 33 lakh hectares of land were brought back under organic farming by providing direct income support to farmers continuously for three years.
“Enriching the land, generating fertile soil, regenerating natural soil fauna, conserving natural resources, harnessing surface water, conserving indigenous seed, and other practices related to sustainable farming are not just farming practices, but also important jobs that add to the country’s assets. Why should farmers not be paid a salary for performing this all important work?” demanded Balkrishna Renake, chairman of the National Commission for Denotified, Nomadic and Semi-Nomadic tribes.
Devinder Sharma, even while pointing out the need for direct income support, made it clear that such support being provided to farmers in the USA simply showed that the mechanised and chemical input-intensive agricultural model is a failure, and the long-term solution lies in returning to indigenous farming practices.
Subhash Lombte, activist of Rashtriya Gramin Shekkari Shetmajoor Abhiyan, opined that the Employment Guarantee provisions can be used to provide support to the entire agricultural economy. “If rural labourers are paid under NREGA for working on farmers’ lands, both farmers and labourers will benefit and the entire farm economy will be revived. Lombte also suggested that a demand should be made with the Maharashtra government to provide Rs.1,000 subsidy per acre to farmers for planting jowar, the staple millet. He said that with the rise in acreage under jowar, which also yields good quality fodder, farmers will be able to add to their cattle wealth and go for organic farming.
Corporate farming under the lens
The policy emphasis on corporate farming came under unanimous and severe attack from all sides. Speakers literally tore the official argument that corporate farming will benefit farmers to pieces with piercing logic.
Jaya Mehta pointed out that the new policy is structured in such a way that it leaves no space for “Even a word about corporate non-interference in agriculture”. Not just the agriculture policy but the entire economic policy of the country is corporate-favourable. Exploding the myth that the presence of corporates will eliminate the middlemen between farmers and consumers, she said, “The corporates themselves are the biggest middlemen, and all corporate intervension will amount to is that these big middlemen will devour the smaller ones.”
Jaya also described in detail the various ways in which corporate intervension has added to farmers’ woes and increased their exploitation. An example she gave was of how small farmers were excluded from the procurement process. Indian Tobacco Company (ITC), for instance, has weighing technology in which they weigh the entire truck full of grain and then the empty truck. If a farmer does not have one truck full of grain he can’t sell. Farmers can’t even do it collectively, because the variety of the grain differs. And even big farmers often have to suffer losses in transport expenses if the company rejects their grain under some criteria of their own.
Afsar Jafri, agricultural researcher associated with Focus on Global South, gave an example of how ‘successful’ corporate-farmer partnerships work - BT cotton seed producing farmers in Andhra Pradesh were paid Rs.250 per kg for the seed by the company, which went on to sell the same seed for Rs.1,650 for 450 grams. “This shows who really benefits from such ‘successful’ collaborations,” said he.
Shukla said that while the government’s policy contains a lot of sloganeering about protecting farmers’ interests, all the practical measures that it comes up with go in favour of corporates rather than farmers.
How to survive in spite of policy
One of the crucial insights arrived at during the seminar was that policy or no policy, farmers will have to learn to survive in a sustainable manner on their own. Policy support, said Professor V Gandhimati of the Tata School of Rural Development, can be a trap. “Ultimately, the responsibility to survive somehow, despite whatever policy might do to them, falls on the shoulders of the farmers themselves. Expecting too much from policy, and then falling apart when that does not happen, is becoming a vicious circle from which farmers need to extricate themselves.
In this context, several case studies on farmers who have successfully revived their indigenous practices and broken through the debt trap were presented.
Balkrishna Renake pointed out the case of three illiterate nomadic women in Solapur district of Maharashtra, who, after three years of intensive natural farming, are earning an annual income of Rs.40,000 each from just 10 gunthas (0.1 acre) of land each.
Dr Avinash Shirke of Social Work College of Yavatmal, said that technology and inputs have to be integrated with farming practices in such a way that farmers can use them in their own way, without either government support or help from input dealers. “We see that all state support, efficient or not, gets politicised, with benefits going to those who are politically strong. At this rate, no amount of policy reform will reach the poorest of the poor farmers. The only way out for these people is barefoot technology which farmers can carry out themselves with no outside help.”
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Cite this article
Aparna Pallavi (2008) ‘Farm policy fails to address key issues’, India Together, 15 March 2008. https://indiatogether.org/farmpol-agriculture/
8 reader responses
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Anand · 15 March 2008
Thanks for the article, Ms. Pallavi. No wonder we see the rise in prices of food with farmers having no incentives to continue farming, that is if their lands have not been taken away in the first place. With 60% of the population forced out of their agricultural livelihood, corporate farms are going to have a monopoly on the pricing of food crops.
V.N.MUKUNDARAJAN · 17 March 2008
The clamour for providing direct subsidy supoort to farmers is unexceptionable.However, the overemphasis on organic farming is difficult to comprehend. Has any country been able to feed its entire population soley on the basis of organic farming?
Laxmi Narayana Paladi · 17 March 2008
To keep the present system of farming, that is, small land holding farming, there are two important things needs to be done. 1) We lost and losing the prime resources like top soil, rains and rain water. All these three must be rebuilt and restore on a war footing basis. It needs huge investments. this is required for any kind of agriculture, to sustain. 2) The present extentin network is quite insufficient to meet the requirements of the big number of semi-literate farmers of India. Chow-chow extention network can't do this big task. While appointing the extention staff, enough precautions needs to be taken to ensure sincere service, as there is a bad name on those already in service. Without 100% sincere work of the extetin worker, nothing gigantic like aheivement can be expected. Without these TWO, even, the new system also an utter failure. Let us not go on experimenting the things.
Divyanshu · 18 March 2008
Timely and essential meeting it was. So is the post. It is quite apparent that government is aiming for the big bucks associated with the corporate and trying to entrap the peasants by throwing changes in their direction. It is good to earn money but doing it on the graves of dying farmers and a rickety agrarian infrastructure is not going to pay off. The balance has to be there. Hope media comes up with such debates ,more often lest it would be too late....
Tapsi Tiwari · 21 March 2008
The article is very informative,but i dont aggree with the point that, the govt policy cant make any difference, what i believe is that, way the policies are fomulated needs some change. eg the point made by the speaker abt the cotton seeds procurement price, this isuue can be solved if the Govt fixes a minimum price for each produce, also the farmers should be made aware of their rights, and also there should be special centers in each village, where the farmers can go and get issues resolved.
Laxmi Narayana Paladi · 1 April 2008
Agriculrural policy in India at the present context must be specific on the iems like, 1) How to achive fast conservation of natural resources like water, soil and vegetation. 2) How to have an efficient extentin system of quality and quantity. 3) Efficient and effective farmloan system and interest policy. 4) Effective, farmer friendly Crop insurance system. 5) Environmental friendly farm technologies, with efficient input supply network. The policies shouldn't interfere with the independant staus of the farmer.
Samuel · 13 April 2008
Industrialization, the glamour of an urban lifestyles promoted through popular media, fragmentation of family land holdings, shift to cash crops and conventional farming technologies, have all contributed to erosion of the Indian agro economy. As a result, farming is today an undignified profession. The men and women who feed the nation are second-class citizens who can qualify as the most unhealthy and unhappy people in the country. Many subsistence farmers live on because they have no courage to die. The schooling system also promotes an urbanized view of life so younger generations are anyway motivated to head for the towns and cities to look for "jobs" and urbanized lifestyles. The politicians know very well the ground reality that a demand for large-scale shift from farming to industries has been created. That is the reason why they are clamouring to reduce the dependency on agriculture. It is no coincidence that in a country which apparently has so many unemployed, one of the problems farmers face is also of labour. There are less and less people to till the farms. Moreover, decentralization of power through panchayats has also contributed to decentralized corruption. Corporate farming is a next logical step in the scheme of things because corporates have control over the markets. Now they need to control the sources of production directly to be able to compete in the predatory environment and lessen their risks. The only way for farmers to beat these trends are to come togother in large cooperatives, add value to their produce and build the clout to address the markets themselves. This can happen only if farmers believe in farming as a viable alternative and having a future for their children. It's a vicious circle. How do you break it?
Sudheshna · 18 June 2008
There is a need to develop new business models for safe and sustainable corporate farming. The current models as commented above can prove detrimental to the farmer. The old co operative models need to be revised and new ones be incorporated. With balanced and appropriate participation of the government, private organisations and the actual farmers, the new model should aim to allow equal play of all the above three stake holders. Just as some of the current corporate are adopting villages for boosting public image, they can start adopting an organised farming initiative. All the three stake holders bear the expenditure for the inputs into the farming ex: seeds, fertilizers, water, required machinery. Likewise they share the profit and mitigate risks. It can also be worked out to provide the farmers and farm labourers a steady income for the farming activities. After all they are working hard to provide food for the nation. There has to be a steering board comprising of equal representation from all three stake holders. All of this also calls for training the farmers and molding them to be entrepreneurs. Their children should be able to see farming as a viable livelihood. The biggest discouraging factor is the risk involved due to uncontrollable climatic conditions.If there is a huge loss due to a flood or drought etc., why should only the farmers bear the burden because they are producing food for the whole nation. If there is a shortage in food supply, there will be increase in prices but the increased prices never reach the farmer but the middlemen. It is unfair that the common man only has a part in the increased prices but the huge economic burden are borne by farmers alone. How can the public also be made to be a part of this loss? We have to come up with a way of handling risks. I believe it is possible and I see an evolving industry over the horizon but it requires lot of planning and policy making. Its a challenge for all the MBAs from IIMs and all the big heads in indian economy and agriculture to come up with a viable business model. Once we realise it is possible, it is not too difficult arrange for tailor-made engineering/MBA courses to suit the manpower requirement. This will create enough rural employment.