The Hindu : National : A brave attempt to restart farm advance: M.S. Swaminathan

Online edition of India's National Newspaper
Wednesday, Mar 01, 2006

National

National

A brave attempt to restart farm advance: M.S. Swaminathan

Hopes State budgets will fill serious gaps

This is the statement of M.S. Swaminathan, Chairman, National Commission on Farmers, on the Union budget 2006-07:

As desired, I give below my views on the Union budget for 2006-07 in the context of the urgent need for agricultural renewal and renaissance.

Using the Finance Minister's terminology `best of times' and `worst of times' improvement in agricultural growth to about 2.3 per cent as well as food production to over 209 million tonnes is a good sign. At least the agricultural growth rate is now slightly above the population growth rate.

In relation to the `worst of times,' our farmers who number 25 per cent of the world's farming population have been subjected to serious problems of climate aberrations, land degradation and market failure. Market fluctuations continue to be very adverse to small growers of vegetables like tomato, onion and potato and other perishable commodities. I am afraid the seriousness of the agricultural crisis has not been fully captured in the budgetary initiatives.

The allocations for rural infrastructure development through Bharat Nirman, particularly for bringing 6 lakh hectares of additional area under irrigation, would certainly help to improve farm productivity. The allocation for the National Rural Employment Guarantee Scheme, if properly utilised should help to upgrade degraded land and improve soil health and water management. If the gender budgeting is done properly in relation to rural investments there should be some relief to female workers whose share in the total work force is increasing.

Short-term credit

Enhancement of agricultural credit and the plan for giving credit to 5 million more farmers is a welcome one. The most significant and timely assistance given to resource poor farmers is the provision of short-term credit at 7 per cent up to a limit of Rs. 3 lakhs. The proposal to give relief to those who are currently severely indebted is also a welcome one. The move to provide separate credit windows to Self Help Groups of tenant farmers is another welcome step. I am glad provision has also been made to revive agricultural cooperative credit institutions.

The steps to strengthen the National Horticulture Mission in the Northeast by establishing a Central Institute of Horticulture in Nagaland is a welcome one. At present most Technology Missions are subsidy rich and technology poor. There is also provision for establishing a National Fisheries Development Board and a National Jute Board. These boards will serve a useful purpose only if they are structured as professional bodies attending to all links in the production-consumption chain in an integrated manner.

Non-farm employment

I also welcome the steps indicated in the budget for increasing opportunities for rural non-farm employment. Thus, the support to cotton textiles and particularly to the handloom sector, handicrafts and food processing will help to diversify income avenues in villages.

Strengthening the technological backup to food processing through the establishment of a National Food Processing Technology Institute and the upgrading of the Paddy Processing Centre at Thanjavur will be helpful.

I am also happy that the contribution of our agricultural universities has been recognised through the allocation of Rs. 100 crores to the Punjab Agricultural University, Ludhiana. I only wish that similar recognition had been given to the Indian Agricultural Research Institute, New Delhi, which completed 100 years of glorious service to the nation last year. The only additional support indicated for agricultural research is the initiation of a World Bank Project.

In short, the budget has made a brave attempt to restart our agricultural advance. I only wish that the suggestions given by the National Commission on farmers for our agricultural renewal and renaissance had been given greater attention. In particular, market reforms and market infrastructure are crying for attention.

Agriculture being a State subject, I hope the State budgets will fill the serious gaps. The Union budget has, however, failed to convey the message that if agriculture goes wrong, nothing else will have a chance to go right.

Printer friendly page
Send this article to Friends by E-Mail