The Hindu Business Line : An opportunity

The editorial “Food inflation and response” (Business Line, July 5) rightly points out that the present high food prices afford an excellent opportunity for reform and investment expansion in the farm sector. For a long time now, agriculture has been regarded as an unviable activity as farm product prices were very low.

Many farmers tend to keep some land uncultivated in view of the high cost of cultivation and poor prices of farm products.

The present high prices of food articles, fruits, vegetables, etc., will, no doubt, motivate farmers to take more interest in farming, provided prices for their products are ensured.

Remunerative prices will act as a strong spur for farmers and motivate them to expand farming activities and increase investments.

To facilitate such investment, however, banks must make available to them timely credit at affordable rates of interest. Building up and expansion of suitable marketing infrastructure are also vital.

Elimination of middlemen by means of organising an efficient marketing mechanism for selling farm produce alone can help farmers get the right prices for their products.

The Government also use this opportunity to and encourage farmers to increase food-grains production for augmenting supplies, both through the PDS and the open market.

If farmers are given more freedom to respond to market signals they can become more innovative and competitive for which the prerequisite is a vibrant market-place for inputs as well as outputs.

Reforms in marketing and other vital areas in the sector can give a much-needed shot in the arm to agricultural growth.

K. K. Ammannaya Udupi