Read Editorial with D2G – Ep (332)

In Read Editorial With D2G
June 13, 2017

The rot in farming: on farmers agitation and sustainable pricing for their produce

READ BEFORE YOU PROCEED:
D2G wears no responsibility of the views published here by the respective Author. This Editorial is used here for Study Purpose. Students are advised to learn the word-meaning, The Art of Writing Skills and understand the crux of this Editorial.

MEANINGS are given in BOLD

To say it is a domino effect (cumulative effect produced when one event sets off a chain of similar events) of the loan write-offs (a cancellation from an account of a bad debt or worthless asset) for small and marginal farmers by the Uttar Pradesh government may be simplistic, but farmers in different parts of the country have begun agitating (to make someone feel worried or angry) for waivers. In Tamil Nadu, they have given the State government two months to meet their demand for a full waiver or face a fresh agitation. Maharashtra Chief Minister Devendra Fadnavis, in the face of protracted (lasting for a long time or longer than expected or usual) protests by farmers, has announced a blanket loan waiver for ‘needy’ farmers, with an estimated outgo of Rs 35,000 crore. In Madhya Pradesh, Chief Minister Shivraj Singh Chouhan has resisted announcing a waiver, but unveiled (disclosed) a ‘package’ that includes a ‘settlement scheme’ to bring loan defaulters (a person who fails to pay interest) back into the credit net with interest-free loans.

Farm groups in Punjab also began dharnas on Monday for loan waivers and other interventions. Finance Minister Arun Jaitley has categorically said States must generate their own resources to fund such largesse (generosity in bestowing money), and the Reserve Bank of India has warned of inflationary risks from fiscal (relating to government revenue, especially taxes) slippages caused by large farm loan waivers. However, it would be short-sighted to see the rising angst in the farm sector as simply the desire of farmers around the country to keep up with U.P. There are deeper reasons that must be addressed holistically (dealing with or treating the whole of something).

The problem is price discovery. In fact, there is deflation in pulse and vegetable prices. The RBI has acknowledged that already falling vegetable prices dipped more sharply because of ‘fire sales’ following demonetisation, and pulses are cheaper because of high output on top of imports. Prices for eggs, oils, cereals and milk are moderating, and while the sharp fall in food prices has kept consumer price inflation tepid (moderate), rural distress has been aggravated.

The new cattle trade rules threaten (pressurize) the viability of livestock and dairy farming. Banks are awash (containing large numbers) with funds since the note ban, but rural lending growth collapsed to 2.5% in the second half of 2016-17 and even shrank (make smaller in size) in several States, including Punjab and Maharashtra. Prices of fuel used by rural households have surged (rise) for three successive months. It is this squeeze (crush) on several fronts that seems to have pushed farmers to the brink (the extreme edge). In consultation with the States, the Centre must reconsider whether it is prudent (cautious) to narrowly target low food inflation.

If India wants to be the world’s food factory, its farm policy needs to recognise farmer requirements for state support. If consumers and producers can benefit from a single national market in the GST era, farmers should also have the freedom to sell their produce where and when they want — with a predictable policy framework (no flip-flops in export-import stances, for instance) that enables farm-to-fork supply chains independent of local mandis and traders. Labour and land reforms also need to be revisited (think about something again) to create more opportunities beyond farming, and irrigation and other infrastructure projects speeded up to boost (improve) farm productivity.

Also Read:

Read Editorial – Pragmatic step: Kerala’s new liquor policy