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Investment World
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Commodities Agri-Biz & Commodities - Insight Columns - Young Investor Inadequate inputs
The agriculture sector is not optimising use of inputs such as seeds, fertilisers, agro-chemicals and water, and this impacts crop yields.
G. Chandrashekhar Inputs such as seeds, fertilisers, agro-chemicals and water are critical for crop production. There is a strong relationship between timeliness, the manner and amount of input usage, on the one hand, and crop yields, on the other. Fertiliser use
The level of input usage in our country is generally low. The reasons include lack of access, high cost, quality concerns and, on occasions, ignorance. Take fertiliser usage, for instance. The average use of fertiliser in India is approximately 95 kg per hectare, which is far below what developed economies use. China, which has a large farm production base, uses about 250 kg of fertilisers a hectare. Crop yields in China are significantly higher than in India. Even within the country, there are regional variations in fertiliser consumption. In Punjab and Haryana, for instance, one finds average fertiliser consumption is about 125 kg/ha, while in States that practise less-intensive agriculture, the average consumption is about 60 kg/ha. Subsidy on fertilisers has been ballooning in recent years. There is now a proposal to deliver the subsidy to the farmer directly. Seeds, pesticides
The situation relating to use of seeds and agro-chemical is not much different. The quality of seeds and pesticide supplies is suspect. A major problem in seeds is the lack of ‘varietal purity’. Similarly, there are cases of spurious pesticides palmed off on unsuspecting farmers. Farmers are often short-changed in input supplies. There is lack of regulation of the input industry and State governments are generally indifferent to these issues. Although huge sums are spent every year on ‘research’, there has been no technological breakthrough in seeds, especially for crops such as pulses and oilseeds. Free use of water is another issue. Many State governments are reluctant to levy user charges; as a result, scarce water is wasted. Collection of user charges will result in conservative and more scientific usage of water. The funds so generated can be used to strengthen the supply sources. Other features include antiquated agronomic practices. Farmers have been using traditional methods of cultivation. They need to be educated about appropriate agronomy in keeping with current farm conditions. ‘Extension’ is a key developmental function but the country’s agricultural extension services have all but vanished. Farmers do not get to meet extension workers anymore. Agri-clinics and similar ideas have had very limited impact. Handling harvested produce
Technologies for adoption at pre-harvest and post-harvest times have been evolved but these are seldom practised. There are scientifically evolved and tested systems for handling harvested produce, including storage and transportation. In the absence of storage facilities, growers often leave the harvested produce in the field itself overnight. Rains/rodents can potentially spoil the crop quality. Because post-harvest practices are not followed, huge quantities of harvested produce are lost. It is estimated that close to a quarter of fruits and vegetables output and a tenth of grains is lost on farms due to inadequate post-harvest facilities. One of the major deficiencies in the country is lack of rural infrastructure. There is shortage of warehouses, cold chains and refrigerated transportation; and wherever available, the facilities are expensive. Roads in rural areas are virtually absent. The farmer has to carry the harvested produce long distances, in bullock carts, on tortuous terrain to reach the nearest marketing yard. He has no facility for primary grading and sorting so he is not in a position to command a good price. Grading and sorting will enhance the value of the produce. Tardy information flow
After reaching the marketing yard (mandi, in common parlance), the farmer is at the mercy of the agricultural produce market committee officials and their designated commission agents. Currently, he has no way of knowing the price prevalent in other parts of the region. The flow of price and market information to growers is absolutely tardy. He is not in a position to decide whether to sell the crop the same day or wait for higher prices. Almost invariably, he sells the crop the same day at whatever price is offered. All these internal challenges an average Indian farmer faces often result in low yields, low production, non-standard quality and of course, highly volatile, often unremunerative, prices. Farming has become a daunting and unremunerative activity. Public investment in agriculture has been declining in recent years. A large number of irrigation projects is incomplete. The country in general, and policymakers in particular, have failed to leverage the advantage offered by ‘normal rainfall’ over the last 18 years (since 1988) barring one or two years of chronic deficit. Lack of attention has resulted in the rural population, keen to exit farming, constantly migrating to cities in search of livelihood.
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