Union Budget and the agrarian crisis
Keeping in view the problems faced by farm families, who comprise over 60 per cent of our population, the finance minister Arun Jaitley has reiterated the government’s resolve to help farmers double their income in another four years. The various measures suggested for doubling income include distribution of soil health cards, promotion of more crop per drop, increase in availability of credit, improved post-harvest processing and value addition and market reform. In all these cases, what is important is to attend to the principal need. For example, in the case of soil health card, the most urgent requirement of our soils is an increase in organic matter. The more crop per drop approach needs also to be introduced in periurban horticulture. Improvement of income of small farmers will require concurrent attention in productivity increase, prevention of post-harvest losses, value addition to primary products and above all, a farmer centric pricing policy. In the area of pricing, it is high time that the recommendation of the National Commission on Farmers (NCF) to provide a minimum support price of C2 (i.e. total cost of production) plus 50 per cent, is implemented. This has been the demand of farmers all over the country.
The proposal for developing a model law for contract farming is a good one. What is important is the use of contract farming as a method of providing scale to small producers as well as improved post-harvest technology and marketing. Contract farming should not be exploitative but should be based on the principle of win-win for both farmers and the contractors.
More than 50 per cent of farm work is done by women. Unfortunately, there is yet no clear policy towards women farmers’ empowerment. Title to land is essential for getting credit. Kisan credit cards should be issued to women farmers even if they do not have title to land. Government should also take steps to promote more cooperative farming and for this purpose, a model act could be prepared for the consideration of state governments.
The finance minister has rightly emphasised the need for using the unexploited power of panchayat raj institutions. They provide a powerful pathway for promoting sustainable agriculture through techniques like integrated pest-management, integrated nutrient supply and improved post-harvest technology.