The Hindu Business Line : Farm to the fore

AGRICULTURE IS AN area where reforms have largely failed to make a marked impact, as is evident from deceleration in growth, and several challenges continue to be faced by farmers, not the least of which is availability of water resulting in uncertain output. By a deft combination of proposals relating to water management, credit delivery, rural infrastructure and crop diversification, the United Progressive Alliance's maiden Budget seeks to regenerate farm growth. Agriculture is the single largest private sector economic activity in this country that can ensure growth with equity, as nearly 70 per cent of the population is directly or indirectly dependent on farming and related activities for livelihood. Erratic farm income growth the last 5-6 years has further widened the urban-rural divide. Interestingly, no one is complaining against the decidedly low-key thrust of the Budget on the manufacturing sector.

A remarkable feature of the Budget is the proposal to restore water bodies. If implemented in earnest, it will have far-reaching implications for farming and rural well-being. Cultivation on 85 million hectares — representing 60 per cent of the country's net cultivated area of 142 million hectares — is rainfed and, therefore, subject to vagaries of monsoon. With less than one million hectares of additional land coming under irrigation every year, the challenge is to ensure adequate water availability to vast arid, semi-arid and drought-prone tracts so that agricultural growth is more widespread and the benefits are shared by a larger section. Food-for-work programmes are ideal to implement the scheme to rejuvenate water bodies gone into disuse. With some effort, the pilot project can be launched in more districts than just the five envisaged at present.

In recent years, crop diversification has become the pet theme of Finance Ministers. The Government recognises the need to shift some acreage away from surplus cereals to deficit oilseeds and pulses. But apart from tinkering with support prices, policy-makers have shown little political will to set right the historical bias in favour of fine cereals resulting in a distorted cropping pattern. The Finance Minister has implored States to join hands with the Centre to encourage farmers to take up horticulture crops and oilseeds. Assurance of ready markets and remunerative prices are pre-requisites to wean growers away from rice/wheat towards fruits/vegetables and oilseeds. Rural infrastructure (access roads, warehouses) and primary processing facilities should be created. Needed is a policy environment conducive to attracting private investment in production and agro-processing. Corporates should be encouraged to establish backward linkages through contract farming. Though the Budget is widely hailed as pro-agriculture with focus on boosting production and crop diversification, it is a matter of concern that Budget outlays for the Department of Agriculture and Cooperation have remained static. Success of the agri-vision of the Finance Minister will depend entirely on effective implementation of schemes.

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