Agriculture revival
Ideas sown, Punjab awaits harvest
The challenges of farming in Punjab were discussed at the recent Progressive Agri-Summit. The state, however, has a history of doing little on solutions suggested earlier. Will it be different this time?
By Ruchika M. Khanna
TEMPTATION: Even as mechanisation is the way to go, farmers often acquire equipment they can ill afford. Tribune Photos: Vicky Gharu |
The
four-day Progressive
Punjab Agriculture Summit organised by the state government recently
saw top agriculture experts, rural economists and farmers from various
states coming forward to deliberate on the current agrarian crisis and
suggest practical solutions to manage it.
Agricultural
production and crop yields in Punjab are stagnating; the crucial
resources of soil and water are depleting because of the wheat-paddy
cycle. Diversifying into other food crops is difficult because of poor
marketing outlets for those. Among the solutions suggested are crop
diversification; land reforms to enable share croppers and oral
lessees to have credit from financial institutions; reducing the role
of middlemen in the food commodities chain to give farmers a larger
share of the profit; assuring a certain profit margin to farmers by
taking into consideration the rise in input costs.
The real challenge
for Punjab, however, lies in implementing the suggestions that have
emerged from of the summit. Over the past 15 years, several
committees, commissions and studies set up by the state government
have highlighted these very issues with similar solutions, but little
change happened on ground.
The state’s
political leadership was advised by leading agriculture experts during
the summit that it should do away with recurrent subsidies and instead
go in for capital investment in agriculture. It was also told that FDI
in retail was the way to provide farmers a ready market for
horticulture produce and bring in intermediary market infrastructure.
However, the Punjab Government has refused to accept these.
The hope now is that
other suggestions will get a boost. These include better marketing of
horticulture produce; access to bank credit for small farmers and
landless labourers; promoting allied activities like dairying, horse
breeding and poultry; and a skill development initiative in
agriculture-related activities for rural youth. Implementation, of
course, will require cooperation as much from the government as
farmers, scientists, industry and financial institutions.
Farm credit
Ensure
credit for farmers from banks
T. Haque, former Chairman of the
Commission of Agricultural Costs and Prices
CASH CRUNCH
Most
farmers have no access to credit from financial institutions.
Private
money lenders charge them high rates.
Farmers
need to be educated against high personal expenditure.
The biggest problem
faced by farmers in the country today is poor credit availability from
financial institutions. This has led to an increased dependence on ‘arhtiyas’,
or private money lenders, who charge them very high rates of interest.
On the other hand, the input costs in agriculture are increasing
steadily but the farmers are not getting remunerative prices for their
produce.
What compounds their
problem is the poor availability of short-term credit from banks and
financial institutions. Though the budget allocations for agriculture
are increasing, it has not translated into increase in credit
available to individual farmers. The credit ratio in rural areas
across the country is just 30 per cent, which means that farmers get
just 30 per cent of their deposits as loans, while the remaining 70
per cent is financed to industry or retail customers. Even in a
progressive state like Punjab, farmers in small villages, especially
those in the border areas, do not have Kisan credit cards or access to
any other short-term credit loan from banks.
Personal consumption
expenditure in Punjab is very high. In view of this committees should
be formed at the village level to create awareness regarding such
unnecessary expenditure, which contributes to rural indebtedness.
These committees can also help farmers in taking credit support from
banks and helping farmers save and invest in financial institutions. I
have been working with farmers in the border areas of Amritsar
district, and found that in some villages none of the farmers had
kisan credit cards or credit linkage with banks. This is the immediate
step towards improving the economic condition of farmers. By making
credit available, we will ensure farmers get quality seeds and
equipment.
WATER
RESOURCES
Diversification
must to avoid drying up
Dr G.S. Kalkat, Chairman of the Punjab
State Farmers Commission
Paddy
alternatives
The
alternatives to the water guzzling paddy are soyabean and maize.
India
imports oilseed worth more than Rs 55,000 crore every year, so
soyabean should have a sure market.
Cargill
is setting up an agro-processing plant in Bathinda, which will require
maize.
Punjab will soon be
rendered a desert in case people do not realise the stark reality of
the fast depleting ground water resources in the ‘food bowl of India’.
We have to strive, in fact pledge, to not let our future generations
curse us over what we stole from them.
In 1949, only 38 per
cent of the total land under agriculture in Punjab was irrigated by
canal water. Paddy was not being grown at any significant scale and
farmers were growing wheat, groundnut and gram, mostly dependant on
rain. But over the subsequent six decades extensive irrigation
facilities created using canals and tubewells led to the wheat-paddy
cycle that paid high dividends. The total produce multiplied, but it
came at the cost of ground reserves sinking drastically.
Barring Muktsar
district, the water level in the majority of the state has plunged to
critical levels, particularly in central Punjab. An indicator of the
situation is that most hand pumps bring up no water in most areas of
Punjab and old tubewells have dried up too. Farmers are now going in
for very deep-bore tubewells at a huge cost.
Today paddy in Punjab
has an average yield of more than 50 quintal per acre, which is among
the highest in the world. The prize, however, has come at a very big
price of depleting ground water resources. The water levels have
plunged more than 10 metres during the past six decades. What is more
disturbing is that there has been no meaningful effort to recharge the
groundwater.
Abundant availability
of irrigation means led to a situation of farmers not breaking from
the wheat-rice cycle. This also means that land does not get rest for
recovering its vitality, nor does the groundwater level recover.
The only way out of
this situation is crop diversification. One of the options of a
low-water-consuming crop is soyabean. Given that we imported oilseed
worth more than Rs 55,000 crore every year, farmers could have a
guarantee of their crop being lifted from the market easily.
Farmers can also
benefit from hybrid seeds available for maize, which give not only a
higher yield but also consume far less water. Maize will also soon
have a very major market in Punjab. The state government during the
Investment Summit in December 2013 signed a Rs-70-crore MoU with
Cargill, a leading global agro-processing company, to set up a plant
at Bathinda, which will primarily process maize, providing a sure
market for the crop.
FARMER
DEVELOPMENT
‘Teach
rural youth farming skills’
Sompal Shastri, former Union
Agriculture Minister
FARMING FOR PROFIT
ITIs need
to teach farming and allied skills.
Make
horticulture and dairying more remunerative with support prices based
on changing input costs.
Remove
middlemen from horticultural crops to attract farmers. Model
available in Andhra.
To improve its
agrarian economy and get the stagnant crop yield moving Punjab has to
provide skill development opportunities to its rural youth and create
an efficient and profit-yielding marketing system for all crops. That
will also help find a way out of the wheat-paddy cycle.
There is large-scale
unemployment in rural areas and there are hardly any efforts to train
the youth in specialised skills related to agriculture and allied
activities. While the Industrial Training Institutes in India impart
training in just 40 skills, in China the rural youth have an option of
learning 6,000 different skills, most of them related to agriculture.
Punjab with its huge potential in agriculture can emulate this model.
With its emphasis on
diversification from the wheat-paddy cycle, the other major initiative
Punjab needs to take is to make horticulture and dairying more
remunerative. Farmers will opt only for the crops that give them good
returns. Since horticulture and dairying are well suited for Punjab,
the state should set up a standing committee to review the change in
input costs and work on ensuring that farmers get a remunerative price
on the sale of horticulture produce as well as milk. This committee
should meet every six months and review the prices to be paid to
farmers.
Another way to draw
more farmers take to growing fruits and vegetables is to remove
middlemen from the trade of these products. Bring in legislation that
allows vegetable and fruit growers to sell their produce directly to
consumers. This has been successfully done in Andhra Pradesh, and
Punjab could pick up that model and adapt it for the state it.
DAIRYING
Pays
when done with knowledge
Sukharpreet Singh Rode, a progressive
farmer of Gurupura village in Moga
AWARENESS THE KEY
Youth not
opting for dairying because of the false myth that it is not paying.
GADVASU
has to make more efforts to educate farmers, who also need subsidy to
start ventures.
Need to
check quality of cattle feed produced in Punjab’s factories.
In view of the
dwindling land holdings and poor returns as compared to input costs,
farmers should seriously consider dairying as an option. There is a
notion that dairying does not give sufficient returns, but I can
invite farmers to see many successful ventures in the state, including
my farm, to show them the satisfying ground reality.
Yes, dairying does
require intensive work and unfailing dedication. We have 300 cows, and
the number is continuously increasing. Expansion is not possible
without knowledge about the latest developments and concerns in the
field. Dairy farmers are not making use of the workshops, training
sessions and consultations organised by Guru Angad Dev Veterinary and
Animal Sciences University (GADVASU), Ludhiana. At the same time, the
university also is not delivering enough through its extension centres
to reach out to potential beneficiaries.
Owing to lack of
awareness, many farmers are wary of switching to dairying. It will not
be a waste of effort if GADVASU launches a series of camps to educate
rural youth on this. These youth need to be given 50 per cent subsidy
in their ventures, which may be covered under any scheme of employment
or agriculture.
The sector has not
been paid adequate attention by successive governments. This has led
to milk shortage, and in turn adulteration.
An area of
particularly concern for dairying is substandard quality of cattle
feed. The state has a very large number of feed factories that are
supplying poor quality products. There has been no meaningful
government action in this regard. This leads to malnutrition and
diseases in animals.
Many big companies
buy our milk at low rates, change its constitution in terms of fat and
solid contents and sell various products at much higher prices. The
state also does not have an effective mechanism for pricing of milk.
In western and southern parts of Punjab private companies procuring
milk from farmers pay Rs 7 less than in other areas. This puts those
farmers at a disadvantage.
SUBSIDIES
Use
incentives to promote trends
Dr Baldev Singh Dhillon,
Vice-Chancellor, Punjab Agricultural University
SUBSIDISE
ALTERNATIVES
Bring
subsidies in areas which could motivate farmers to look for
alternatives to the wheat-paddy cycle.
Government
in view of the overburdened soil should also compensate farmers for
leaving fields idle for occasional seasons.
Subsidies
are available for water-saving measures, such as drip irrigation, but
most farmers are not aware of these.
Even as the Punjab
Government continues to provide subsidies on power and water to
farmers, there is a need to bring subsidies in areas which could
motivate farmers to look for alternatives to the wheat-paddy cycle. If
used rationally, subsidies are the best option available for promoting
natural resource management for a secure future.
I do not understand
why such a hue and cry is made about agricultural subsidies in Punjab.
Farmers in the US, Japan, Canada and South Korea also receive huge
subsidies. Even the Centre provides subsidy worth Rs 7,403 per acre in
different forms, while Haryana provides subsidy of Rs 8,871 per acre,
against Rs 8,675 in Punjab.
Like certain other
countries, the Punjab government in view of the overburdened soil in
the state should also compensate farmers for leaving their fields idle
for one season after a specified number of seasons. At the moment
farmers wait for one crop to be harvested to immediately sow the next.
This has a direct impact on the nutritional value of the soil. If this
is not addressed immediately, the soil will start showing signs of
depletion.
There are several
subsidies available for water-saving measures, such as drip
irrigation, but most farmers are not aware of these. In certain cases
up to 70 per cent subsidy is available for these technologies, but are
not being taken by farmers.
Farmers often tend to
buy heavy farm machinery for show-off, particularly tractors, even
when they have small landholdings. They should instead avail of the
1,200 tractors made available by the government across Punjab for
common use. Similarly ground-levelling machines are also available,
which help save water through optimal irrigation.
I agree with the
issue raised by several farmers at the summit that there is a need for
greater interaction with farmers through the agricultural extension
programme. Farmers also talked about the need for subsidies on green
fertilisers.
The experts’ views are as told to
Ruchika M Khanna & Sanjeev Bariana
FDI
IN RETAIL
Big
chains, contract farming the need
Dr Gurdev Singh Khush, international
rice breeder
GO HI-TECH
Punjab
topography and weather suited to horticulture.
Post-harvest
losses in fresh foods 30%.
Punjab needs to make
concerted efforts for crop diversification. We have formed enough
policies but now it is time to act and ensure that it happens. The
incessant wheat-paddy cycle has hit the bio-diversity of Punjab. The
groundwater level is decreasing; rampant use of fertilisers is
affecting soil health and we are overexploiting the nutrients in the
soil.
Horticulture is the
best bet for Punjab because of its topography and weather conditions.
But there are impediments to promoting horticulture. There is no cold
chain infrastructure, post-harvest losses are high because of poor
handling of fruits and vegetables; and almost 30 per cent of these
foods are wasted because of poor handling and storage.
FDI in retail, if
allowed, would create not just a ready market for horticulturists but
also help in creating intermediary market infrastructure like
climate-controlled storage, sorting and grading centres and perishable
goods centres. Farmers will also get better prices for their produce
and a ready market to sell their produce.
Big retail chains like Walmart do a
much better job of helping farmers grow high-yielding varieties by
contract farming with them and making fresh produce available to
consumers by grading and sorting it. Allowing FDI will thus give a big
push to agriculture and crop diversification.
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