The Hindu Business Line : Growth eludes the farm sector

Is the country’s political scene readying for a snap change? By terming the present UPA government’s farm policies its “biggest failure,” the CPI(M) General-Secretary, Mr Prakash Karat, may have touched a raw nerve of the ruling coalition. To be sure, the UPA rode to power on the promise of delivering benefits to the hitherto unreached aam aadmi (common man). In the last four years, the country’s overall economic growth has been unprecedented (8-9 per cent a year). Both manufacturing and services sectors are booming, with double-digit growth having become the norm. In the process, these two sectors have helped attract investment and generate employment. On the other hand, agriculture has remained a laggard. Growth rate in the sector has stagnated at about 2.2-2.3 per cent over the last 10 years. Unsteady output, uncertain markets and unremunerative prices have forced growers to become restive. Inflation, especially food inflation, continues to erode their already limited purchasing power. There is large-scale migration to urban areas in search of employment. Some, unfortunately, end their lives out of frustration. Many of those currently on the farm want to exit, but their sheer number is daunting. At least in the short term, the two growth sectors cannot absorb the large numbers of additional labour (from farm), especially those who lack the right skills.

Given the sectoral skew or lop-sided nature of growth so far, it is no surprise that the benefits of economic growth have not really reached all sections of the population equitably. A large section continues to remain outside the mainstream; and no decisive time-bound plan is in sight. Without doubt, New Delhi has initiated a number of policy measures to strengthen the farm sector. Raising the minimum support price, increasing the fertiliser subsidy, expanding the credit flow and outreach as also improving markets are some of the major steps taken by the present government. Obviously, these have not been enough. Much more needs to be done to advance the interests of the farm community.

Consolidating fragmented landholding, strengthening input delivery systems, expanding irrigation facilities, infusion of technology and building rural infrastructure are part of the way forward. In addition are such challenges as strengthening the public distribution system (PDS) and widening the welfare programmes. State governments and the Centre have to work in concert in areas such as agricultural development and PDS. The Centre can lay down policies and allocate funds. States have the duty to implement schemes and programmes. While Mr Karat’s concerns relating to the status of agriculture may be justified, the credibility of the Left party would stand considerably enhanced if it came up with strong recommendations or alternative growth and development models to strengthen the farm sector so as to ensure delivery of benefits equitably.

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