The Hindu Business Line : Remunerative prices

As rightly pointed out in your editorial "Panic in Wheat" (Business Line, March 20), the government has sought to display its pro-farmer image through the declaration of a Rs 100-per-quintal bonus for wheat-growers, and by extending duty-free imports till the year-end.

But the benefit of this measure may not reach small farmers, as most of them take an advance from the intermediaries during the cultivation period itself with a commitment that the produce will be sold only to them. After the harvest they have to hand over the produce to these middlemen. Such small farmers will be denied the benefit of the new scheme.

The government is thus experimenting with trial-and-error methods in its fight against inflation. Strategic planning seems lacking. The government must, instead, attempt a thorough overhaul and revamp of agricultural marketing, involving State governments in the process. Sincere efforts must have been made to curb speculative tendencies, black-marketing and hoarding. State governments must be taken into confidence in these matters.

The Centre and the States must assume joint-responsibility for motivating farmers to expand agricultural activities and to augment production. Ensuring remunerative prices has its own motivational implications and the government has to exploit this in the interests stepping up farm production.

K. K. Ammannaya

Udupi

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