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Ch. Prashanth Reddy

Hyderabad , Oct. 10

THE current agrarian crisis cannot be addressed simply by dealing with indebtedness or strengthening the rural credit system. The crisis has more to do with the viability of the agriculture sector itself, the consequence of prolonged neglect and absence of breakthrough in production technology, according to a study by Dr V. Ratna Reddy and Dr S. Galab of the Hyderabad-based Centre for Economic and Social Studies (CESS).

In their study titled Farmers' Suicides: Looking Beyond the Debt Trap, the economists said that farmers' suicides could not be brushed aside as an event associated with drought or other natural disasters. A number of technological, ecological, socio-cultural and policy-related factors are responsible for the current agrarian crisis.

According to the study, the incidence of suicides by farmers across the country points toward a brewing agrarian crisis during the past decade.

"Agriculture is becoming increasingly unviable irrespective of rainfall pattern. The contribution of agriculture is declining at a faster pace than the population depending upon it. The decline is much sharper in per capita terms. Such a crisis was avoided during the 60s with the advent of Green Revolution technology. No such technology, especially for dry lands, is visible on the horizon at present." The main fallout of this technological deadlock, the study said, is the increase in input intensity to maintain productivity levels in degraded and marginal lands.

Even the marginal growth in productivity is achieved at an increasingly higher input costs, adversely affecting the profit margins of the producers.

On the other hand, some of the recent breakthroughs in biotechnology are proved to be neither land-saving nor cost-saving.

"As a result, farmers are experimenting with crops and inputs. The pressure to take risk is driving them to invest, even at high cost of borrowing. In the absence of proven technology, agriculture has now become high-risk and high-stake gambling, which is causing the distress."

Ecological exigencies leading to farm distress, according to the study, are mostly man-induced rather than natural. Rainfall analysis during the last 100 years, especially in drought-prone areas, shows little variation in quantity and pattern. Ecological factors include mainly the declining quality of land and water resources.

The CESS economists have said that the fast-changing socio-cultural factors are also contributing to the agrarian crisis.

"On account of changed lifestyles, expenditure of rural households has changed. Lifestyle-induced expenditures like consumption of milk products, soft drinks, cosmetics and entertainment have increased. Educational and health services have also become costly while returns to agriculture have stagnated. Unable to control these expenses, farmers are trying to experiment with new seeds, inputs and in new areas in order to enhance their incomes. In the process, they are getting entrapped in debt."

To cap it all, the study said, there has been an apparent policy bias against agriculture in general and rain-fed agriculture in particular. "There is no policy emphasis on dryland agriculture technologies or promotion practices. Price policy is biased in favour of wheat and paddy. Input polices like power and water have encouraged inefficient use of these resources. Rural credit policies have encouraged moneylenders. There are no consistent seed or input policies and extension services in agriculture are neglected."

While value addition to agricultural produce has gone up substantially, the CESS economists stated, the share of the farmer in the additional value is "zero. Farmers are not encouraged or supported to get involved in the process of value addition."

But why the incidence of suicides is more in States like Andhra Pradesh? According to the economists, this was because the share of agriculture has declined more sharply in AP consequent to undue importance given to non-agriculture sectors. The share of commercial crops is higher and the rural- urban divide much sharper in the State.

More Stories on : Natural Calamities | Andhra Pradesh

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