Business Daily from THE HINDU group of publications Wednesday, Jun 06, 2007 ePaper |
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Agri-Biz & Commodities
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Outlook Industry & Economy - Economy NDC meet makes a pitch for strengthening farm growth G. Chandrashekhar
For the first time in recent years, there is a clear recognition among policymakers that `inclusive growth' cannot be achieved unless agricultural growth is assured.
Mumbai June 5 The National Development Council's (NDC) meeting held recently made a strong pitch for strengthening the country's agricultural production base through higher investment in various farm related activities for raising production and productivity of crops. For the first time in recent years, there is a clear recognition among policymakers that `inclusive growth' cannot be achieved unless agricultural growth is assured. But it is unclear if it has been recognised that growth is important, but lop-sided growth or growth without equity could prove to be counter-productive. Manufacturing and services sectors both clock double-digit growth. As a result, income in the hands of those employed in these two sectors is rising rapidly. On the other hand, farm growth has stagnated at just about 2.3 per cent over 10 long years (Ninth and Tenth Five-Year Plan periods), denying as much as 60 per cent of the country's predominantly rural population access to even essential goods and services their urban counterparts enjoy. This trend has been left unchecked for long. Successive governments ignored agriculture. They have been obsessed with growth per se, and not growth with equity. Massive migration from rural to urban areas, rising urban poverty, unemployment and pervasive rural distress as evidenced by large-scale farmers' suicides are the result. We are today paying a price for our past omissions and commissions.
Root cause
Very clearly, economic depravation is the root cause of social unrest and strife in most cases. We should not mistake the symptom for the disease. Caste or communal conflicts are but an excuse. They are an excuse to revolt against the failure of the State to ensure minimum living standards for the vast sections of people. The NDC meeting perhaps failed to grasp this. No doubt, the opening and closing remarks by the Prime Minister as also statements by the Finance Minister and the Agriculture Minister recorded how concerned the Government was about shortages of essential commodities and resultant price rise that hurt the poor the most.
Beyond commitment
But, in effect, the meeting ended in a whimper. Beyond some financial commitment and motherhood statements about the need to raise production, expand irrigation and promote research there was little else. No explanation was demanded and none was offered for the failure so far. No specific strategy came out of the meeting. We may feel food secure today; but if recent production and consumption trends continue (there is nothing to suggest a major change), then the country's food import dependence is sure to worsen. It may not be possible to remain fully self-sufficient all the time in all food products. Imports should be resorted to when inevitable. Yet, we seem to be consciously taking up the easy option of food imports, without sufficiently endeavouring to raise indigenous production. If anything, the meeting provided further evidence of the Centre distancing itself from the farm sector and virtually abdicating its responsibility to promote self-sufficiency in agricultural production. This is sad, indeed. Food security and nutrition security are the responsibility of the Central government. Government policies have to be growth-oriented and designed to promote the greatest good of the greatest number. If food security is increasingly perceived as the responsibility of the Centre, it cannot wash its hands off in the matter of food production.
Short-term plans
States have been asked to prepare short-term and medium-term plans including regionally differentiated strategies taking into account local conditions. If the experience of the last several decades is any guide, one can assert that many States have neither resources (financial, human) nor commitment. Very simply, agriculture cannot continue to remain in the `State' list any more.
Serious partnership
There has to be a serious partnership between the Centre and the States in implementing programmes. Perhaps the most critical issue for the administration is implementation of various programs and delivery of real benefits to the people at large. Beyond homilies, there is nothing to suggest the NDC meeting discussed implementation issues and accountability for performance. The Prime Minister talked about having to take tough decisions; but failed to specify what these tough decisions are and who will take them. In fact, it is for the Government to take tough decisions in terms of more transparency in decision-making, more accountability for performance and drawing full value for large monies spent on numerous programmes.
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