Rs15 a roti

 

 

One fine morning in 2006, Hari Mohan Singh took a good look at his fields in Baghpat, western Uttar Pradesh. As far back as could be recollected by him, the fields had yielded ample sugar cane, which was enough to feed his family and pay for his needs. He bagged the Adarsh Kisan (Ideal Farmer) award of the government. Singh’s father was a freedom fighter, and the recognition kept the family flag flying high. Regrettably, it had come to such a pass, that Singh decided to sell two beeghas (1,800 sq yards), to pay for the medical treatment of his son. A part of the proud farmer died that day. He told TSI, “All a farmer gets to hear is that he should practice multicrop farming. They don’t realise that this involves increased costs for seeds and other expenses. Prices have shot up and we don’t get good returns.”

A 2004 report of the National Sample Survey Organisation (NSSO) states that the average income of a farmer in India is Rs 2,115 a month. The National Commission on Farmers states that in Uttar Pradesh, the most populous state in the nation, with the highest number of farmers, the income dips to a mere Rs 1,630. This signifies the farmer getting poorer by the year. In 1991, according to the Union Ministry of Agriculture, there were 10.6m farmers in India and the cultivable land for agriculture was close to 1.65m hectares. Among them, 6.3m were marginal farmers with cultivable land measuring 2.5m hectares. The marginal farmers came primarily from Uttar Pradesh, Bihar, Tamil Nadu, West Bengal, Madhya Pradesh and Maharashtra.

Since 1991, the number of marginal farmers has shot up by more than a million, which means the land per capita has come down. The average family size is still the same, so there is pressure on land holdings. The farmers are selling land to repay loans, making matters worse. Recent steps undertaken by the government seem to underline the irony. New Delhi-based food and trade policy analyst Devinder Sharma told TSI, “On one hand, the government is on the verge of constituting the Sixth Pay Commission and on the other, the number of suicides by farmers is increasing”. The comparison is stark. There are around 4.2m employees under the central government and around 20m workers of various state governments. A wage hike by the Sixth Pay Commission is projected to cost the exchequer Rs 10b a year.

A peon employed by a public sector company earns five times what a farmer earns. TSI ventured ventured to the agricultural heartland to investigate the ground reality. Vinod is a medium-level farmer in Meerut. He says that on an average, whenever one hectare of the wheat field is irrigated, the tubewell consumes electricity to the tune of Rs 300. Uttar Pradesh is a state with paucity of power. Thus, the farmers are forced to use engines that are run on diesel. The rate of diesel has gone up from Rs 7 to Rs 35 a litre during the last decade. The cost of running diesel engines varies from Rs 700 to Rs 800, depending on the water level. Wheat is required to be irrigated at least five times, thus ramping up the cost to Rs 4,000. Dr. O.P. Singh, Director, Sardar Vallabhbhai Patel Agriculture University, Meerut, explained to TSI, “The falling water table and delayed monsoons are taking a toll on the farmer.” Then, the farmer has to contend with the type and quality of the seeds. The Bharat Beej Nigam is selling seeds at Rs 1,400 a quintal, when the rate set by the government is Rs 850 a quintal. A field measuring a hectare requires seeds amounting to 160 kg (costing Rs 2,200). Three years ago, seeds cost Rs 1,000 a quintal. Fertiliser required for one hectare costs about Rs 3,000 (Rs 1,500 each for DAP and urea). If this is the state of the landowners, one can only shudder to think about the state the landless farmers are in. They are paid in kind, i.e. four quintals for a yield from one hectare. Threshing is done by tractors, since the poor farmers cannot afford threshing machines. This adds to the cost. A farmer pays 4.5 quintals wheat for threshing. A one hectare field yields about 53 quintals of wheat, out of which he parts with eight quintals.

To illustrate the point lucidly, one may take the example of a cash crop. Fifty five percent of tea produced in India is from Assam. During the peak season, on a daily basis, approximately 20 lakh kgs of tea is produced. The market price of high quality tea has tanked by 10%, whereas the cost of production has increased by 10% to 12%. It was found from conclusions drawn from a recent study that in the last five years, 5% to 7% workers quit the fields, since income was badly affected. The tardy performance of the agriculture sector in the Tenth Five Year Plan has worked against it. In the 2006-07 Budget, the funds allocated for agriculture amounted to 7.8%, while the allocation for 2007-08 was reduced to 7.5%. In terms of GDP, the figure stood at 1.5% till 2000-03 and reduced to 1.26% in 2007-08. These statistics are of significance, because the powers that be who decide the fate of the farmers understand empirical parameters. The government has increased the sanctioned limit of loans by 30% through the commercial, cooperative and public sector banks in rural areas (amounting to Rs 1,04,500 crore). The increased limits for disbursal of loans may reinforce the Vidharba syndrome among the farmers.

Last but not the least, what clinches the issue at hand is the contrast in the per capita subsidy granted to farmers in the US (which amounts to $2,50,000, as per the US Farm Bill 2005-06) and the corresponding figure for India, which is a piffling $0.18, as per the annual report of Oxfam on Indian agriculture, 2004-05. Raising subsidy in India would mean higher costs for the people. Which no one is keen on. Therefore, the farmer frets. What the Centre is doing for the farmers

The UPA government is quite serious about the agriculture sector. The Prime Minister has set up a committee that would work for development in all areas. This would be reflected through improved GDP. Our prime objective is to bring down the cost of agricultural production. We would employ the best technology and use high yielding seeds. We are working on producing good quality seeds that would need less water. Besides this, we are also considering grant of loans to farmers at lower rates of interest. We would also set up more poultry farms and dairies and encourage horticulture, which would improve the economic condition of farmers.

We are at the moment studying the report of the National Commission on Farmers, headed by Dr. M.S. Swaminathan, and discussing what recommendations could be employed. It is a report that enlightens and we are considering all factors. We would soon be ready with the Agricultural Policy. The government has also decided not to take fertile agricultural land for the setting up of Special Economic Zones (SEZs). At best, we could use single crop land when barren land is not available. As far as possible, we are avoiding multicrop land. Land cannot be taken from the farmer by force anymore.

We don’t think that the farmer is angry. As far as fixing the blame is concerned, for the problems, it is the responsibility of all the ministries to ensure that the government runs smoothly. It would be unfair to put the blame on one individual. With these steps, we hope to correct the situation in the farms and we expect that the farmer will get relief soon. Agriculture is our backbone and the government is taking steps to ease the problems in this vital sector.