Farmers want States to push for private investment in agri sector

For decades, grape growers in Sangli district, Maharashtra, have experimented with varieties and exported them. Many of them, however, still struggle to access basic infrastructure like roads, connectivity, cold storage, and transportation. In rural Osmanabad, farmers don’t hope to see these facilities in the near future. Farmer organisations want State governments to facilitate private investment in agriculture as the gross capital formation (GCF) in agriculture and allied sectors, relative to gross value added (GVA), has been fluctuating. 

The latest Economic Survey pointed out that the fluctuation in the GCF arose mainly due to fluctuations in private investment. While public investment in agriculture and allied sectors has remained stable at b2-3 per cent over the years, tprivate investment has fluctuated, the Survey stated, adding, a“the total agricultural GCF has moved in sync with variation in private investment”  

No growth without investment

Yogesh Thorat, managing director of MahaFPC, a consortium of farmer producer companies in Maharashtra, argues that investment would have flowed into the agribusiness infrastructure supply chain had the farm laws been approved. Recent developments have shaken the confidence of investors in the agri sector, he said. Many in the FPC movement echoed Thorat’s view that public investment would not bring any reforms in agriculture and other investment avenues must be tapped, including a market-led system. 

The Economic Survey underlines the direct correlation between capital investments in agriculture and its growth rate. Greater participation by the private corporate sector, whose investments in agriculture are currently a low 2–3 per cent, may help, the Survey said. 

Expectations from States 

Shetkari Sanghatana leader Anil Ghanwat wants State governments to help private players invest in agriculture. He said that without capital and technological freedom, farmers cannot survive on agriculture alone.

“If the Union government is not able to take farm reforms forward, States must make provisions in State laws to introduce reforms that will attract private investment. I am not sure how agriculture and farmers will sustain without investment,” says Sayaji Mane, a farmer from Sangli. 

The Union government has admitted that private corporate investments need to be crowded in by offering an appropriate policy framework and an increase in public investment. 

“But there are no concrete steps in this direction at the central level; the States must step forward,” added Osmanabad-based farmer Balasaheb Adsul. 

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