The Hindu Business Line : Crucial input for farmers

If policy decisions are taken on basis of official published information, it stands to reason that such information is authentic and accurate. But in practice, official data are revised from time to time, sometimes sharply higher or lower. This vitiates the policy decision and willy-nilly, harms industry and trade. It is common knowledge that by their very nature, commodity markets are volatile and that timely and correct information is key to success in the marketplace. E ven as uncertainties relating to demand-supply fundamentals — and, concomitantly, prices — pose a risk to genuine producers and consumers, they create lucrative opportunities for speculators. Given the entrenched risks associated with agricultural production, the timely collection and dissemination to all stakeholders of authentic data (on rainfall, acreage, input supplies, pest attacks, production, quality and markets, to name a few) is crucial.

Unfortunately, in our country, both forms of infrastructure — ‘hard’ (roads, ports, warehouses) and ‘soft’ (information, education, extension) are woefully inadequate. We need to invest a lot more in both forms of infrastructure than we do at present. The inadequacy has a serious fallout on the working of trade and industrial units. Decisions on sourcing, inventory, processing and marketing as also cash-flow management are critically dependent on reliable information. In particular, our agricultural statistics — regrettably — seem to mislead rather than inform. Sugarcane, cotton and oilseeds are three of the country’s largest commercial crops, in volume as also value. Millions of growers are engaged in cultivating these crops that are raw material for several hundred industrial units that process them. Often, government decisions are based on crop production and related data. Policy changes based on data of doubtful authenticity can wreck havoc, as was evident in the case of the ban on sugar exports last year. Sugar mills lost export opportunities and cane growers lost more — remunerative prices.

There has been at times a distinct disconnect between the Agriculture Ministry’s cane output estimate and the Food Ministry’s sugar production estimate. Data relating to cotton and oilseeds too fail to inspire confidence. As for oilseeds, the latest rapeseed/mustard output estimate of 70 lakh tonnes has been disputed by the apex body of the industry and trade as being unrealistic, or over-optimistic. Grains are no different. If rice production in 2007-08 is claimed to be an all-time record of 94 million tonnes, is the restriction on non-basmati export justified? There is a looming suspicion that, from time to time, the government tinkers with acreage and production data of major crops. The Ministry of Agriculture has a tremendous responsibility to ensure statistical data are collected scientifically, with an unswerving commitment to accuracy and authenticity. It would make sense for the government to set off a process of multi-stakeholder consultation in such matters.

More Stories on : Editorial | Agriculture

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Crucial input for farmers

Virtual data-rooms — the new transaction backbone

Beefing up the nation’s finances

‘Lean’ is more than a cost-cutting tool

Should ATM usage be encouraged through incentives?