Maharashtra8217;s sinking crop

While Vidarbha has been producing less and less of cotton, the other Indian States have been faring rather well. The average productivity in Punjab last year was 5 quintals/hectare, Rajasthan: 3.5 quintals/ hectare, Haryana and Tamil Nadu: 3.3 quintals/hectare, and Karnataka and Gujarat: 2.3 quintals/hectare.

The reasons for the downfall are not difficult to find lack of irrigation, non-development of effective environment-specific varieties of cotton and susceptibility of the crop to pests and diseases. Successive governments have done little to save the sinking crop. Vidarbha, for instance, has been able to reach only 8 per cent of the total irrigation potential of 13 per cent in the State.

8220;Being a region of assured rainfall has cost Vidarbha dear as the rulers used it as a pretext for not attaching priority to irrigation,8221; says Vijay Jawandhia, a Shetkari Sanghatana leader.

The shortage of proper hybrids has been a cause for concern too. Prestigious institutes such as Mahabeej, Panjabrao Krishi Vidyapeeth PKV and Central Institute for Cotton Research CICR have reportedly developed several hybrids, but they are not widely available in the Vidarbha belt.

According to Babasaheb Kedar, former minister and former chairman of the State government8217;s Cotton Marketing Federation, these varieties have reached only a small section of farmers. The rest have been using those manufactured by private companies. These companies have flooded the market with hundreds of so-called hybrids 8212; most of them, according to agronomists, are not really hybrids or high-yielding varieties.

Some experts feel that the inability to raise the level of techniques to cope with the post-hybrid era led to the decline in production in the area. Says P.W. Amin, an agronomist: 8220;With the onset of hybrids like H4, cotton became susceptible to various pests. This called for changes in cultivation techniques, which didn8217;t happen, leading to stagnation in production.8221;

Instead of tackling these issues, the Government is focused on another aspect: wooing the farmers, who form a considerable vote bank. The result: a populist policy of pricing. Though the current price of Rs 2,100 per quintal is much above that of other States, that hasn8217;t brought about any increase in the production of cotton.

The Monopoly Cotton Procurement Scheme, which was devised to benefit the farmers, has raised uncomfortable questions. According to Kedar, the very purpose with which the scheme was started has been defeated.

The scheme8217;s slogan was Cotton-to-Cloth8217; and it was envisaged that cotton-growers would be able to raise cotton-based industries, thereby becoming financially strong. But only a few mills came up 8212; and most of them have turned sick.

But the general notion has been that the scheme has been devised for procurement at a price fixed by the Government. Under it, farmers are legally bound to sell their produce to the State. 8220;The Government resorted to populism by offering to pay much beyond its capacity,8221; says Kedar, 8220;it is clearly a failure of the Government and leadership.8221;

The original idea was to pay an advance against the purchase. The remaining amount was to be given after the final value-added product, cloth, would be ready. Somewhere down the line, the idea was lost. From 1985-86, the Government evolved a new formula whereby it pays the farmers the support price announced by the Centre along with the advance.

With the scheme simplified to a mere procurement-payment machinery, defects began to surface. This year, the losses are set to touch Rs 1,000 crore.

What with the State paying a populist price of Rs 2,100 per quintal, it won8217;t be too long before things come crashing down. 8220;The scheme is run with the farmers8217; own money. True that the Federation has to resort to overdraft, but that is an accepted practice in other areas too,8221; says N.G. Keley, Executive Director Procurement and Processing of the State Cotton Growers8217; Marketing Federation.

8220;Let the principles of economics come into play,8221; suggests Amin. 8220;Do other States have any such scheme for their farmers? They haven8217;t found the Maharashtra an example worth emulating,8221; he adds. With the present system, the farmers have to take their produce often to a distant procurement centre and wait for days before formalities are completed at a sluggish pace.

Then starts a long, agonising wait for the payments which are made in instalments. The burden of loans forces many farmers to settle for a lower price and sell their produce to local agents. These agents then sell the huge stock to the State at the official price. Keley says that the system of payments is not against farmers8217; interests. He says: 8220;It depends on the way you look at it. This year we initially paid Rs 1,400, followed by an instalment of Rs 300. The last instalment of Rs 470 is being disbursed now.

In Madhya Pradesh, the farmers got only Rs 1,700 per quintal in one go. Now you decide which is the better situation.8221;

As the farmers and the officials blame each other for the fall in produce, the main source of income in Vidharbha is gradually drying up.