Small-holder farmers (those owning less than 2 hectares of farmland) comprise 78 per cent of the country’s farmers, but own only 33 per cent of the total cultivated land.
In the financial year 2010-2011, when the GDP was at 9.3 per cent, total contribution of Agriculture was 7.9 per cent (thus being 14.5 per cent of the national growth percentage). By 2012-2013, GDP was at 5 per cent with agriculture contributing 13.7 per cent. Interestingly, according to a UN report, small-holder farmers (those owning less than 2 hectares of farmland) comprise 78 per cent of the country’s farmers, but own only 33 per cent of the total cultivated land. They nonetheless produce 41 per cent of the country’s food grains. This has been a major hurdle for increasing productivity since most of the practices are unscientific and haphazard in nature. It is largely this sector that is provided with maximum subsidies since it is not able to address its own needs. According to a May, 2013 LiveMint report, Ashok Gulati, chairman of the Commission on Agricultural Costs and Prices (CACP) which advises the Government on farm goods prices, said, “Our calculation is that Rs 1.25 trillion is front-end subsidy. There are many costs that have not been counted.”
Add to this the fact that official figures say 1.94 lakh metric tonnes (MT) of food grain was destroyed between the years 2005 to 2013. This does not account for the food grains that Food Corporation of India (FCI) refused to purchase from farmers since there was no space to accommodate new procurements. For all the food grains that went waste, the prices received weren’t even enough to meet farm-to-market transportation costs, leave alone the burden of loans that he carries and his survival expenses.
This is enough to give a picture of where things stand and why farmers in various parts of the country are forced to commit suicides.
In sharp contrast, agriculture contributes to about 15 per cent of the GSDP and agricultural growth rate in Gujarat rose from 3.3 per cent in the 1990s to 11.1 per cent during the decade 2001-02 to 2011-12. In fact, the production of cotton, wheat, fruit crops and milk have played a vital role in sustaining the agricultural growth in the State economy. The variability in growth rates appears to be reduced to a significant extent thus stabilising the farmer’s income. Although, the farmers of the State have shown a move towards cash crops, fruits & vegetables, and oil seeds, the total production of food grains crossed 100 lakh MT for the first time in the history of the State in 2010-11. The gross irrigated area increased from 33 lakh hectare in 2000-01 to 53 lakh hectare by the end of 2012-13. At the same time, the State also brought an area of 2,05,000 hectares under micro irrigation in 2012-2013. Gujarat is also promoting high-tech agriculture in a big way, by assisting farmers for setting up green house, net houses and poly houses, resulting in increase in production of fruits and vegetables to 190.51 lakh MT in 2012-13.
This is where Plan Modi plays a vital role in reviving the agricultural scenario.
While the biggest challenge that the agricultural sector faces can be termed as knowledge deficit, infrastructure deficit, irrigation infrastructure, market infrastructure and transport infrastructure; a comprehensive methodology to tackle this issue is urgently needed.
The reason behind Narendra Modi’s success in Gujarat was Gujarat Agro Vision 2010 which included land reforms, watershed development, increasing irrigation outreach, drip irrigation (which Narendra Modi had termed as ‘More crop per drop’), horticultural development, biotechnology, improved seeds, bio-fertilisers, strong marketing structure and developed facilities for storage of agricultural produce.
Realising that Gujarat was losing 40 per cent of farm produce due to bad storage, he had initiated post-harvest technology to ensure bigger margins.
This is not enough. Agro-sector has to be integrated with industry, which is why Modi talks of 5F formula — Farm to Fibre, Fibre to Fabric, Fabric to Fashion, Fabric to Foreign. This strategy he had utilised successfully in to help cotton cultivators get better returns for their yield.
However, when it comes to national parameters, there are equally varied challenges. First among them is the question of land reforms. While that will ensure there is free movement of land usage, there would also be an equally important element and that is to unite the small land holder with higher agro-yield to form a cooperative, so that the cost of production comes down.
Technology upgradation in small farm sector will not be productive. There is a need for deeper integration considering that cooperative movements have succeeded majorly in Gujarat and partly in Maharashtra.
To make a success of similar efforts in Uttar Pradesh, Bihar and other bigger States could be a challenge. A paradigm shift in Government’s thought process is urgently needed, where agriculture is not looked at as an obligatory sector to ensure survival of rural segment but a vital cog which not only feeds the nation but can also generate immense support for exports. Equally important is the fact that every farmer has to be made to realise that his survival is not based on subsidies from a mai-baap sarkar. Rather a venture where his conscious and decisions will be key in ensuring better returns. A two-way process where multiple cogs have to fit together. Challenge though it may be for Prime Minister Modi, there can surely be no shortcuts to the revival of the Indian economy.
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