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The issue of increasing farmers’ income and equitable distribution of opportunities in the agriculture ecosystem was discussed in detail at the Mint Leadership Roundtable held recently in Delhi. Other aspects of increasing India’s per capita income will also be discussed in this series in Mumbai and Bengaluru.
Prof. Ramesh Chand, Member, NITI Aayog opened the proceedings with a keynote address in which he explained that there is a need to redefine the role of agriculture in India. He said that agriculture contributes about 19% to India’s Gross Domestic Product (GDP), while labour employment is 45% and rising – a far cry from what was expected in times of development.
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“We need to redefine the role of agriculture in the economy. The growth in crops grown on 94% of our land has not been even 2%. So, the sector that is driving growth is not benefiting all farmers. Our efficiency in most commodities is declining, and for most crops, the real cost of production is rising,” Chand said.
He said, “The government is also emphasizing on natural farming and less use of chemicals, but it takes a lot of labor. But if we combine natural farming with mechanized farming, the difference in production can be reduced to a great extent.” He further said that the fiscal burden of agriculture is worrying and the role of policies to support agriculture should be played by the markets.
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Chand was supported by most experts in considering diversification as the biggest factor for growth in agriculture. However, concerns were also raised over crops like paddy and wheat occupying most of the agricultural land in India and their poor growth in the last few years. Diversification into other crops like maize and oilseeds and horticulture was also considered.
But Mekhala Krishnamurthy, associate professor of sociology and anthropology at Ashoka University, said any move towards diversification should have market and consumer-led research at its core. In addition, environmental factors such as depletion of groundwater levels and degradation of soil quality in paddy fields were other factors considered for diversification.
Ganesh Sundaraman, Chief Operating Officer, Agri Business, ITC, said that the key priority for the country today is to raise the income levels and transform the lives of millions of farmers who own farms of 1.5-2 acres and whose income is well below the average.
Experts suggested that pesticide-free farming and switching to organic farming is another long-term agenda that needs to be addressed. Rajashekar Reddy Seelam, founder and managing director, Shrestha Natural Bioproducts, said that to maintain soil quality, leguminous crops (which were practised earlier) can be reintroduced along with crops like paddy. Better storage facilities to prevent wastage, collectivisation of land, better coordination between corporates and startups and keeping the farmer at the centre of any decision-making were other important suggestions given by experts.
Ajay Jakhar, president of Bharat Krishak Samaj, said that understanding the livelihood of farmers is complex for decision makers, especially because it is not possible for farmers in India to increase their income to the extent that they can live a respectable life. Jakhar said that apart from giving them equal opportunities, human capacity also needs to be improved.
Experts said there is a need to create a safety net for farmers given the risky nature of this business. Once the utility of MSP (minimum selling price) and subsidies is over, the money should be used in other forms. A lot of behavioural change is also required at the farmers’ level, as in the last five decades people have started growing single crops or two crops. They will have to diversify to reduce risk.
Sanjeev Kanwar, Managing Director, Yara South Asia, said that India is on its way to becoming a $10 trillion economy after 10 years. This means that agriculture, which currently contributes about $400-500 million to GDP, will have to contribute at least $1.5 trillion. Kanwar said that in such a situation, the usual way of working will not work. He said that to get there, we will have to deal with the challenges of water scarcity, soil health and nutritional value of crops.
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There is also a need to improve funding for agricultural research, which has seen a decline in the last few years. The panel suggested that not just Punjab, but the smallest states should be focused on and their achievements should be celebrated.
According to Chand, greater involvement of states is needed in terms of reforms, rather than making it an expectation of the Centre. Every policy decision taken by the Centre provides a level playing field to all states, but some states are achieving 6-7% growth, while some states are recording negative growth, Chand said. Citing the examples of Andhra Pradesh and Maharashtra, which produce 18% and 10% of fruits in India, respectively, and are also top producers of vegetables and fisheries, he said it was not as if the Centre was facilitating them; the states were proactive.
Amit Kapoor, Joint Managing Partner, JSA Advocates & Solicitors, while talking about the three repealed agricultural laws, said that negotiations with farmers should have taken place before the law was made, not after it. Farmers need to be taken into confidence, not dictated to. He said that if all the states are brought together for a national dialogue and dialogue with farmers is started again, Indian agriculture can be improved.
Similarly, Roshan Lal Tamak, Executive Director and Chief Executive Officer (CEO) of Sugar Business at DCM Shriram, spoke about the need to list national priorities for agriculture. He said that forming a National Agriculture Council involving all the states, where they can share their experiences and experiences and discuss issues, can be of great help. He said that the government had made a good land lease act in 2016 for consolidation of land, but it was not implemented properly by the states.
Interventions through regulation and not over-regulation, and rationalisation will be the key to moving forward. Experts believe that water should not be free and neither should fertilisers be highly subsidised. Farmers should be given the freedom to take decisions, but the government must support and govern them.
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Hindustan Unilever Foundation Chief Executive Officer Shraman Jha said that in most parts of India, women are playing a leading role in agriculture due to migration of men for employment.
Finally, like any other sector, the role of startups and corporates cannot be denied. They need to collaborate to help farmers and play a bigger role in redefining agriculture in India. The fear among farmers of losing their land to the government or corporates needs to be dealt with more sensitivity. Services for farmers or those wishing to do farming should be available at the right price, including the latest technologies and equipment, said Subhadeep Sanyal, a partner at Omnivore.
The cost of Internet of Things (IoT) and monitoring etc. is quite high and unless there is some kind of collectivisation, it will be very difficult to benefit farmers. Apart from playing a role in connecting to the market, startups can also play a role in preventing crop wastage through better use of technology.
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