Business Daily from THE HINDU group of publications Tuesday, Feb 20, 2007 ePaper |
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Agri-Biz & Commodities
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Cultivation Organic farming may ease farmers' debt woes M.J. Prabu
"The Government should understand that Indian agriculture is in a very critical juncture at present. Pumping in money to the tune of about Rs 20,000 crore for agricultural loans and establishing agri research centres will not help in solving this problem," says Mr R. Ranganathan, President, Organic Farmers Association in Tamil Nadu. According to Mr M. Sethuraman, an organic farmer of Kidathalaimedu village in Mayiladuthurai, farmers do not require hybrid seeds, Government procurement, minimum support price or kisan call centres. "What they need is a small working capital and the conviction to cultivate crops organically," he said. "Organic farming is not expensive and farmers need not get into debts. All the items necessary for organic farming are there in the field itself," says Mr M. Manimaran, Panchayat Board Chairman, Kothavasal village in Tiruvarur district, Tamil Nadu. The entire village of nearly more than 300 acres has switched to organic farming. "Farmers suicides is not only because of debts they have accumulated due to crop failure alone, but dependence on private moneylenders, unremunerative price, lack of comprehensive insurance schemes and rampant supply of spurious seeds and pesticides have contributed to the cause," says Mr M.R. Sambandan Pillai of Thirumangalam village in Mayiladuthurai. All organic farmers voice the same opinion that India is a huge seed, fertiliser and pesticide market and major commercial players are only interested in lobbying the government to increase their profit. The minimum support price (MSP) announced by the Union Government is unremunerative as the hike in MSP has been nominal. Inversely, input and labour costs have risen from 5-10 per cent every year, according to Mr D. Bharani, a sugarcane and banana farmer in Mayiladuthurai taluk. Inspite of the Government's decision to waiver co-operative loans and increase bank loans to farmers, it has yielded the desired results. Though the RBI has issued a notification to all nationalised banks to channelise 20-30 per cent of credit facility to agriculture-based industries, these banks have not even advanced 5 per cent to the farming sector, say farmers of Kothavasal village. "Right from the start, banking institutions doubt the farmer's credibility in repayment and try their best to shake him off. Naturally, the frustrated farmer turns to moneylenders who charge even 26 per cent interest rate," they say. "Another factor is the absence of a comprehensive seed legislature bill, which could provide punishment to spurious seed manufacturers," says Mr Sethuraman.
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