CMs’ agriculture panel favours linking FinComm grants with reforms

Other members of the committee, who attended the meeting, include Haryana Chief Minister Manohar Lal Khattar, Arunachal Pradesh CM Pema Khandu, Gujarat CM Vijay Rupani, Union Agriculture Minister Narendra Singh Tomar, Niti Aayog member Ramesh Chand. Madhya Pradesh Chief Minister Kamal Nath joined the meeting via video conferencing, while Uttar Pradesh Chief Minister Yogi Adityanath sent his views in writing as per a PTI report. Karnataka CM HD Kumaraswamy is also a member of the committee.

Niti Aayog Chief Executive Officer Amitabh Kant also attended the meeting.

“Grants of the Central government and fund allocation of the Finance Commission should be linked with the agriculture reforms undertaken in states,” Fadnavis said while adding that it is essential to ensure simultaneous reforms in states. “The Centre provides Rs 13 lakh crore crop loan for farmers. Unfortunately, large number of farmers, especially small and marginal, remain outside the institutional credit mechanism. High on the committee’s agenda is to bring all the farmers within the credit ambit,” he said.

The committee intends to take the banks and financial institutions on board to work out a flawless model. The matter will be discussed with RBI, Fadnavis said.

According to PTI, Rupani made a point of doubling the income of farmers and suggested to make changes in the market system to attain the same. He said the criteria to calculate a farmer’s income should be based on his profit and by changing the role of markets, benefiting farmers would be easier. Among other things, some committee members also questioned the utility of the Essential Commodity Act (ECA), 1955, in the food sector. “Chief Minister of Madhya Pradesh Kamal Nath was in favour of scrapping the Essential Commodity Act (ECA), 1955,” Fadnavis said.

From effective use of technology, digitisation of entire process from sowing to marketing, use of drones and satellites, focus on groupfarming for sustainable farm practices were discussed at the meeting. The committee also pitched for promoting contract farming in states. It also discussed ways to promote the food processing industry.”There is a need for boosting private investment in the agriculture sector and promoting contract farming,” he said.

Emphasising the need for drastic reforms in the sector, Fadnavis said, “At 3 to 4 per cent the agriculture sector growth is a cause of serious concern. What compounds the problem is the lower investment flow in the agriculture section not exceeding one per cent. The primary task would be work for a dynamic system to ensure higher agriculture growth along with higher capital investment.” Reflecting on the mismatch between agriculture produce demand and supply often resulting in farmers incurring huge financial losses, Fadnavis said there should be greater coordination between the ministries of agriculture and commerce, as the former deals with production, while the latter with marketing.

Fadnavis said the terms of reference (ToR) of the committee also includes making sure that more farmers in the states get institutional loans. He said the committee has finalised ToR, and states have been asked to give their feedback by August 7. The next meeting of the committee will be on August 16. —WITH PTI