Part 5 : The Bigger Crisis of Agriculture overall, its Imperatives and the Way Forward.
5) The Bigger Crisis of Agriculture overall
Reasons of the Crisis in Agriculture
The real issue is the lack of remunerative prices for a majority of agricultural commodities, a sharp increase in price variability in recent years, and an unpredictable and arbitrary government policy regime, none of which is likely to change in the near future.
It is these which have led to a recurrence of distress in the agricultural sector with regular farmers’ protests which have only grown in frequency in recent years.
Part of the problem is the changing nature of agriculture which has seen increased dependence on markets, increasing mechanization along with increasing monetization of the agrarian economy.
The increased dependence on markets has contributed to increasing variability in output prices.
With limited intervention by the government in protecting farmers’ income and stabilizing prices through MSP-led procurement operations, the variability has increased in frequency as well as the spread of it.
Other than rice and wheat and to some sporadic instances of pulses, most crops suffer from inadequate intervention from MSP operations.
However, even these procurement operations are unable to stabilize prices with falling demand and a slowing economy.
Not only has the procurement operation failed to arrest the decline in prices, the uneven nature of procurement has meant that in many States of eastern India, wheat is sold at 2040% lower prices compared to MSP.
It is the same in the case of paddy where most States have seen market prices significantly lower than the MSP.
The situation is far more worrying for crops such as maize which sold at 4060% lower than the MSP in most States.
Unfortunately, none of this is new. In the last five years, three years have witnessed negative inflation for cereals.
While the withdrawal of the Acts is unlikely to ensure price stability, even the demand of making MSP a guarantee for private trade is meaningless if the government is unable to ensure procurement for a majority of the 23 crops for which it announces MSP.
Crops such as wheat and paddy for which there is procurement, the regional concentration makes it irrelevant for most of the eastern and southern States.
Imperative for a Long Term Resolution
Even if the current impasse due to the farmers’ agitation gets resolved, there is no certainty that the structural factors which have contributed to the farmers’ unrest will get resolved.
The existing policy framework with an excessive focus on inflation management and obsession with the fiscal deficit will likely lead to lower support from the government either in price stabilization or reduction in the cost of cultivation through fiscal spending.
The agricultural sector needs a comprehensive policy overhaul to recognize the new challenges of agriculture which are diversifying and getting integrated with the nonagricultural sector.
This not only entails a better understanding of the structural issues but also innovative thinking to protect farmers’ livelihood from the uncertainty of these changes.
Bottom Line :
According to the 2018 NCRB data, there were 10000 farmer suicides in the year alone, a figure which is a shorthand manifestation of the dilapidated condition of farmers nationwide.
On the same note, the APMC’s which were supposed to be an instrument of emancipation of farmers from the vicious cycle of loans, have themselves become an instrument of further exploitation.
The AMPC system which dates back to 1887, and subsequent state legislations post-independence addressed the concerns of the then age and circumstances which roll with time, and so do the aspirations of farmers.
With States like Punjab, Rajasthan, Maharashtra, Kerala(called a spl. session) and Chhattisgarh, currently dead-set on passing resolutions manifesting their denial to implement these bills owing to their ‘resolute collective opposition’, it is nothing short of a herculean task for the Central Government to steadfastly unite the vital stakeholders which in my opinion, it has every moral right to do so for the interests of our Annadatas triumph over those of the ‘Footage-khatas.’
It is my ardent opinion that it is imperative before the nation to emancipate farmers from being economic refugees to being prosperous and self-reliant.
And to do that, changing mindsets with circumstances would be a starter.
However, this entire exercise of simplification would fail to serve its purpose if propaganda triumphs over non-partisan awareness and education.
On that note, I sincerely hope that the demands of farmers would enter the realm of reasonability with a departure from being economic and political refugees in their own states.
Best,
Malhar Satav.
References:
https://www.prsindia.org/node/845768/chapters-at-a-glance
http://blog.careerlauncher.com/farm-laws-and-farmers-protest/
https://indianexpress.com/article/explained/an-expert-explains-farm-acts-and-federalism-6622769/
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