The Hindu Business Line : `Year of Farm Resurgence'

IS THE DOCILE elephant beginning to stir itself up for some real action? If, at the turn of the year, there is euphoria around the country, especially across industrial and services sectors, it is entirely justified, for, the economy is on a roll. Be it stocks, commodities or real-estate, all major markets are booming while manufacturing is humming, spurred by new investments; 2005 is one of those rare years when all markets simultaneously spiked or trended upwards. There is every indication that this momentum would be carried into 2006. But this bright picture of the economy, painted with strong demand-supply fundamentals, should not mask the real issue that still touches the lives of two out of three Indians — agriculture and growth. The farm sector has remained a laggard since 1991 when the country embarked on the path of economic liberalisation. Successive governments paid lip-service to the sector, and nothing much else.

Agriculture is yet to overcome severe challenges and constraints confronting it for decades. Production uncertainties and shortages are becoming more visible and getting accentuated. Import is the soft option in the short run. But in the long run, burgeoning imports rob local farm jobs. India is one of the few countries endowed with all physical factors of production — land, labour, water and sunshine. What is lacking? Managerial vision and the political will to exploit the natural advantage. It is a shame that despite notable gains on the farm front in last five decades, we are still home to the largest number of under-fed and malnourished children, women and men. Some of the noteworthy initiatives of the government in the last two years include investment in irrigation and scientific water management, enhanced flow of farm credit, reforms in agri-produce marketing and so on. These are yet to show tangible results.

But a lot more remains to be done. The Government has repeatedly asserted that there is no dearth of funds for agriculture. Yet, the data on public investment in agriculture are far from heartening. The most serious challenge to policymakers and scientists is to evolve technologies for small farmer production systems. Delivery of credit and other physical inputs efficiently and cost-effectively to the millions of farmers is another big challenge. Importantly, while it is less onerous to deliver credit, what we really need to strive at is capacity-building among resource-poor farmers. The policymakers need to address the issue of large `disguised unemployment' in the farm sector. As the economy grows, more farm workers would like to exit to sectors such as services. Finding sufficient number of non- or off-farm jobs is the key.

An important way of creating more such jobs is to give a boost to the food processing activity. Building rural infrastructure as also education and re-training of farm hands are integral to the success of food processing. Again, the Centre's initiatives have to be complemented and supplemented by State and local authorities. Unless agriculture becomes a national subject, a national priority, indeed a national obsession, progress will be slower than desired. Make 2006 the `Year of Farm Resurgence'.