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Sci Tech
FARMER'S NOTEBOOK
A practical guide to avoiding losses for small ryots
M.J. PRABU
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It is important to educate farmers on working capital management
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— Photo : M. J. prabu
Risk management: Mr. Balaji Shankar, a farmer in Tamil Nadu in his field.
Getting a bumper yield and securing a remunerative price (not minimum price) for the harvested produce is fast becoming a pipe dream for many farmers in the country. Inclement weather, bureaucratic approach and absence of proper marketing channels have made life miserable for them. With a failed crop, depleting water table and mounting debts, many farmers choose to commit suicide thinking it would end their problems.
Avoid pure crops
“The common thread, which runs in all these suicides, is that most of these farmers have grown pure crops (monocrops) in large areas and had failed to get a good harvest.
In many cases the crops grown were not suited for that area or soil,” said Mr. Balaji Shankar, a successful organic farmer at Sirkali, Nagapattinam district in Tamil Nadu.
Getting loans difficult
Tempted by huge profits from hybrid seeds (which are not suited for their soil type) they borrow money at high interest rates.
A majority of them have no idea what schemes and credit facilities banks are offering them and prefer to borrow at high interest rates as bank loans are a far-fetched dream for many.
On the other hand, rural banks prefer to play it safe and want the farmer to pledge his jewels or land documents for availing agriculture loans.
“If we are serious about preventing more suicides, it is important to educate the farmers on hands-on risk management, working capital management, and marketing and social bravery issues,” said Mr. Balaji.
How does a small farmer with limited resources manage and mitigate these risks? According to Balaji, crop diversity, organic farming, native seeds, farm pond, milch cattle and planting trees are useful and significant components of a practical risk management plan.
Reduced input costs
Organic farming substantially reduces input costs. For example, for composting vegetables and farm waste with cow dung and urine, the production cost may come only to about rupees two.
A farm pond guarantees irrigation water for at least one crop in a year, and growing fishes in the pond can be an additional source of income. Mixed cropping reduces pests and also increases yield. Native seeds are cheap, resistant to pests and diseases and withstand both drought and flood.
Steady income
Growing trees contribute to fresh feed for cattle, wood, efficient rain harvesting, prevention of soil erosion and attract local birds which feed on insects and pests of the crop. Keeping cattle assures a steady income and also retains and replenishes the soil by urine and dung.
As for working capital requirement, a farmer should only plant as much acreage as his resources permit.
“For example instead of spending Rs.10,000 per acre to cultivate hybrid crops and earning a gross income of about Rs. 20,000 (if at all) in six months a farmer can spend Rs 1,000 per acre and grow multiple vegetables and earn a net income of Rs.15,000,” he said.
Debt trap
Taking a loan at high interest from private lenders and investing the money on high-risk farming is a sure road to a debt trap, he feels.
If a farmer has about 10 acres and only Rs. 25,000, he should invest it on multiple crops in three-four acres and either let the rest of the land fallow (free) or grow trees there.
Allowing the cattle to graze in the fallow land is a wise investment. A cow can graze all year round in one acre of occasionally irrigated land and produce 900-1,000 litres of milk in a year — it needs no other fodder.
“Instead if he borrows another Rs. 50,000 and invests Rs.75,000 in a single hybrid crop (like cotton) he is paving the way for his own peril. Most families have about 2-2.5 acres of cultivable, irrigated land in our country.”
From personal experience, “every family needs only about 0.5 acres for meeting its food requirements. So a farmer can not only feed his own family from one hectare but also 4 more families,” he said.
For more information Balaji Shankar can be reached at No 2/12 Tirupura Sundari Nagar, Then Pathi, Sirkali: 609 111, Nagapattinam District, Tamil Nadu, email: balaji@earth.org.in, Phone: 04364-271170, mobile: 99655-52252.
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