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G. K. Nair

State Govt's focus on debt relief and watershed planning

Kochi , Aug. 4

The Kerala Government in order to revive the agrarian economy of the hilly district of Wayanad, where devastation of agriculture has led to 321 suicide cases by farmers, has come out with a comprehensive proposal to be implemented over a period of time.

"The agrarian crisis of Kerala is most acutely manifest in the district and due to persistent fall in prices of most of the crops cultivated there, the crisis further aggravated," the State Finance Minister, Dr T.M. Thomas Isaac, told Business Line.

ACTION PLAN

Given the serious situation, a comprehensive proposal has been prepared to revive it. The proposal includes: 1) A debt relief package that would wipe out the entire debt. 2) Watershed-based planning for the development of agriculture covering the entire district. 3) Within the watershed, individual household-level whole farm planning for the development of agriculture and allied sectors including livelihood security, and 4) Social sector interventions to address the gaps in physical and social infrastructure and counselling, Dr Isaac said.

The total amount of the package is estimated at Rs 501.40 crore, he said. The break up of the Rs 501.40 crore project is debt relief Rs 70 crore, watershed management Rs 51.75 crore, integrated farming and livelihood security project Rs 223.91 crore, agricultural extension Rs 10 crore, agroprocessing and marketing Rs 110 crore, social sector Rs 32.74 crore, and project management Rs 3 crore.

HIGH-VALUE CROPS

Wayanad is characterised by cultivation of high-value crops with predominance of plantation crops and spices. The agrarian crisis in the district originated from the fall in prices of two most important cash crops of the district viz., pepper and coffee.

Coffee-based cropping pattern is the notable feature of the district. Coffee is grown both as pure crop and as mixed crop with pepper. Pepper is mostly grown as a mixed crop with coffee.

DOVETAILED SCHEMES

All the ongoing schemes of departments of Agriculture, Animal Husbandry, Dairy Development, Fisheries, Rural Development, National Horticulture Mission, local self-governments would be dovetailed in each farm plan, wherever feasible.

The schemes of Coffee Board and Spices Board would also be integrated in collaboration with the Commodity Boards.

The likely amount for implementing the farm plans would be quite high considering the higher requirement of investment for rehabilitation of perennial crops. Moreover, dairy has enough potential in the district, which is also capital intensive.

The present crisis situation in the district is not conducive to making any investment from the savings of the farmers. Hence, it is proposed to assist up to 90 per cent of the quantum of the farm plan for all small and marginal farmers limited to Rs 15,000 per farm household.

The remaining amount would be the share of beneficiaries or credit. For large farmers the assistance will be limited to 50 per cent of the amount of the farm plan amounting to Rs 10,000.

The project will be implemented under the leadership of the local slef- governments. At the district level, a committee will be constituted to coordinate the project and review the implementation of it.

CROPPING PATTERN

Tea and rubber are grown as mono-crop, while coconut and arecanut as mixed crop with coffee and pepper. Cardamom, vanilla, ginger, turmeric, banana, tubers, vegetables and medicinal plants are grown as mono-crop and also as intercrop in coffee, pepper, coconut and arecanut.

The fall in price was compounded by consecutive droughts. The effect of drought was persistent in perennial crops ranging from three to five years. There is a growing recognition that agriculture is becoming increasingly unstable from the point of view of environmental balance due to natural calamities and trade balance due to global liberalisation and Regional Trade Agreements.

The cumulative effect resulted in drastic fall in income per unit area over a period of the last five years and accumulating debt, which ultimately ended up in the most extreme step of farmer suicides, the Finance Minister said.

Different schemes are having different guidelines with differing pattern of assistance. In order to bridge the gap to meet the balance amount to reach 90 per cent or Rs 15,000, an amount of Rs 5,000 per farm plan would be used from the Backward Region Grant Fund sanctioned for the district. The Planning Commission has approved the project document submitted for Wayanad under the erstwhile Rashtriya Sam Vikas Yojana.

Wayanad has also been selected under the Backward Region Grant Fund and hence detailed project for the development of the district has been prepared and approved by the Planning Commission, he said.

AGRARIAN ECONOMY

The agrarian structure of Wayanad is characterised by perennial crop dominated homesteads. The average size of holding is 0.61 ha. It is proposed to prepare detailed scientific farm plans for each homestead taking into account the bio-physical and socio economic resource base of the homestead.

Appropriate linkage with credit will be suitably incorporated in the farm plan. Depending on the light intensity suitable varieties will be recommended for intercropping. Livestock, poultry, piggery, small pond-based fisheries, agro forestry and other income generating activities will be supported in each farm plan.

Dairying is the subsidiary occupation of more than 70 per cent of the rural population engaged in agriculture. Dairying should get top priority in the productive sector, since the district has the potential for its further development. Being a district, which shares a boundary with two neighbouring states quarantine measures and animal disease control should also get adequate attention.

Coffee is the prime crop of the district sharing 32.33 per cent of the total cropped area followed by pepper (21.49 per cent) and paddy (7.18 per cent). The other major crops are banana (4.28 per cent) jack (5.42 per cent), coconut (5.26 per cent), ginger (2.5 per cent), cardamom (1.97 per cent), arecanut (2.89 per cent), vegetables (2.43 per cent), tea (2.89 per cent) and rubber (3.08 per cent). The plantation crops occupy 43.75 per cent of the total cropped area and spices and condiments another 29.08 per cent. All the major crops cultivated in the district suffered simultaneously from the fall in prices.

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