Friday, September 21, 2018

Making Indian agriculture profitable and sustainable.

Indian agriculture has plunged between domestic welfare and global market. Govt is not finding and permanent solution of this imbalance. Indian agriculture is passing through the blind way and no one knows where it goes. During the British times British govt developed Indian agriculture in context to International Trade. British Govt put major focus on industrial crops like Cotton, Jute, Tea, Coffee, Tamarind, Indigo, Sugarcane, Potato, Spices.  After the independence from British Govt Indian agriculture focused toward elimination of hunger. Independent Indian govt put major focus on Food crops like wheat, rise and pulses. Govt achieved its goal and India was able to feed the local population without any import. After the globalization and open market economy Indian agriculture market was open for foreign players. It was very crucial time when agriculture needed a lot of reforms as per globalization. But govt paid attention to industrialization. Govt paid attention to manifesting and service sectors.

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After the open economy Indian agriculture faced a lot of distractions and Indian agriculture was not well equipped with global market. Indian agriculture produce was not as per global standards and local product was not able to compete with import of agriculture produce.  Now Indian agriculture market has become the import centric. Import bill of India is increasing day by day. Today India is importing edible oil, Pulses, Wheat, Fresh Fruits, Sugar. In year 2016-17 there was import agriculture commodities of USD 25,636 Million or Rs. 1,40,268 crore Rs. it is a alarming figure as mouth of Indian citizens are increasing. By 2025 there will be 1.5 billion citizens in India. Agriculture land is dividing in small holdings. Agriculture land in shrinking or converting into residential and commercial land. We can increase the agriculture land.  We can find the solution of this problem in better management of resources and better long-term policies. 

Population Control:  

Indian need a long-term policy on population control. Pressure of population is increasing on resources. Currently population is increasing like human blast. Birth rate in high, mortality rate in low in new born, life expectation of senior citizens is increasing. Low mortality rate of new born and life expectation rates are positive figures. We need an immediate control on birth-rate. Govt must policy of one child of two child so with strict regulations so that number of feeding mouth can be stopped. Increasing population is also dividing the agriculture land in small plots. Most of agriculture land in small plots are used in operations and road / path. Productivity of land decreases due increasing fix cost of small land holdings.

Agriculture land consolidation: 

Agriculture land must be reorganized and consolidated in large plot of minimum 500 Hectare in rainfed and 100 Hectare in irrigated. Current land owner can be attached under social security scheme with free education, food, residence and unemployment allowance if current land owners remains unemployed in future. Land consolidation is key of better management and planning of the profitable agriculture. Cost of farm operation and farm maintenance cam be controlled and minimized with land consolidation.

Removing the MSP: 

MSP makes the basic price of commodity high. That makes easy entry of the imported material. Govt can give benefit to farmers in welfare scheme instead of mixing it with MSP.  MSP is not covering all crops and entire country.  Govt don’t purchase whole material at MSP. MSP foes farmers to cultivate few crops. Somewhere it disturbs the decision making of farmer for crop cultivation. Cost of cultivation of the crop is name same through out the country due to different fix and variable cost. If the prices of domestic production will be low then prices of imported good will be also lower than domestic prices. 

Non subsidized Agriculture loan: 

Govt gives a lot of subsidy on agriculture loan to farmers. Agriculture loan in misused in two ways, poor farmers used the agriculture loan in non-agriculture uses. Rich farmers used this load for lifestyle expenses.  Mostly big farmers benefit from agriculture loan.  If the agriculture loan will available on market prices, then only the needy farmers will take agriculture loan from banks.  If the needy farmers will take loan, then loan will go to the exact place of requirement.  The surplus money allocated by govt for loan will to another agriculture development programme. 

Separation the farmer welfare and agriculture scheme:

Farmers welfare is essential part of social development Sometimes agriculture development is halted due to farmers welfare both. For the benefit of farmers govt increases the MSP of the agriculture products.  Money doesn’t not go to the allocated head.  Govt should make separate plan for the welfare of farmers which can cover his essential need, welfare, social security and social development.  Agriculture scheme should be focused toward increase of production, minimize od production cost and improvement of quality of the production as per international market. Mechanization and R&D in food processing in major thrust area. For example, govt gives subsidy for agriculture loan, farmers use that loan for his personal use. After two three years Govt wave off the agriculture loan.  The allocation was for agriculture development but govt covert it into the welfare scheme, this type of practice hurt the agriculture development. It changes the mind set of farmers and he make his mind for non-payment of the agriculture loan.

Privatization of agriculture research:

Agriculture research in going through the pathetic condition. Most of agriculture research budget is used for the salary of scientist and staff. Research initiated by institute is not market oriented and economical profitable. For political reason govt has come with many agriculture, veterinary, horticulture, fisheries universities, due to separate university a lot of budget is used in administrative expenses. In some projects there is more availability of the scientist and at some project three non-availability of staff. Market oriented research will open the door for the private investment and agriculture research will be come equal to international standards.  World is working on advance technology in agriculture like digital agriculture, use of UAV in agriculture, Soil less agriculture, Urban agriculture, intervention of robot in agriculture. There is not any major research initiative toward these technology in agriculture in India. Many countries area working toward the block chain technology in agriculture and real time demand and supply of agriculture produce. 

Crop cultivation Planning:

Govt must come with a planning of crop cultivation. Promotion scheme should be for the defined area and defined crop. Many farmers use a lot natural resources like water and electricity but they produce only few crop and increase the over production. Crop cultivation must be allocated as per available natural resources and market demand. If some crop is exceeding the production and govt should focus on another crops. Indian produces a lot of rice and Sugarcane but India import a lot of vegetable oil and wheat.  Over production decrease the market value of existing stock and increase the import of non-production agriculture commodities. There is requirement of real time agriculture data and statics, so that govt can make a long-term sustainable production planning as per demand of country.