The forthcoming budget will, for good reason, accord priority to agriculture and education. Concerns on food security have both nationally and internationally increased in recent months. The World Bank’s Annual Economic Outlook 2008 also focuses on agriculture, which presents myriad challenges.
The Special Plan on agriculture as part of the XIth Five Year Plan, based on the consensus of a Special Meeting of the National Development Council, mirrors these new challenges. Given the constraints of ground water availability and a wasteful water-use pattern, the replenishment of ground water aquifers is difficult. The renewed emphasis, therefore, on region specific and agro-climatic zones is only appropriate.
In this context, the grossly underutilised agro potential of a state like Bihar, which has abundant ground water, offers enormous opportunities. Nitish Kumar began by identifying and honouring successful and progressive farmers at the block, district and state levels. This generated competition, and the Agriculture Action Plan stipulating targets both on productivity and diversification is based on the concept of ‘Rainbow Agriculture’. This implies simultaneously improving incomes through fishery, poultry, orchard, dairy and numerous other neglected agro-related activities.
The blueprint of the plan was discussed ten days ago at a special meeting in which I was a participant. This meeting brought together over a thousand progressive farmers from all over the state. This ‘Kisan Panchayat’ enabled active intervention and comments by over 75 farmers on the draft Action Plan. Frankly, I was quite amazed at the quality of farmer intervention and wondered why a dialogue of this kind in other parts is not being pursued. The farmers’ comments had coherence, and design as well as consistency in the complaint pattern. The dominant challenges appeared to be:
• Bank credit: I never realised that statistics at the aggregate level fail to capture the harassment, anger and frustration at the ground level on the scrutiny and disbursal of bank credit. These include multiplicity of personal verifications, and seeking collaterals from landless labourers even when they wish to enhance income through herbal or fruit plants in their homestead plots. Several committees have written volumes on agricultural credit. But if the anger of the farmers assembled to comment on the state agricultural strategy is any indicator, their recommendations were either inadequate or ground-level implementation grossly inadequate. This deserves our continuing attention.
• Crop insurance: Numerous suggestions were made, particularly on improving coverage, securing farmers against the consequences of erratic weather and curtailed product shelf-life given the inadequacy of cooling facilities. Looking at insurance for the agriculture sector in a holistic way still has a long way to go.
• Single window: Many farmers pleaded that if the government could think of a single window for industry, then why not one for agriculture. I never realised that the multiplicity of permissions required were such that a single window system deserved serious consideration.
• Venture capital: Looking at the need for agriculture diversification and the risks involved, venture capital arrangements for the agricultural sector must now be examined. Similarly, extending the reach of the Kisan Credit Card for allied agricultural activity like poultry, fishing, and horticulture deserves encouragement.
• Weather prediction: Meteorological forecasts have improved, linking agro insurance with weather forecasts which makes planning easier. Internet access for all farmers and a much wider dissemination of information may take time. However, improving weather prediction and warning system for individual districts would greatly help in risk mitigation.
• Carbon credit: Finally, how about carbon credit for mangoes? Extending the concept of carbon credit to the agriculture sector can be a win-win situation. In the Indian context, the extensive use of wood or animal waste for heating, cooking and other energy needs of farmers is a major pollutant. How does one incentivise a switchover to environment-friendly ways? Devising an incentive structure for sustainable agriculture, which extends the scope of carbon credits to smaller entities, has multiplier benefits.
The budget will provide enhanced outlays to implement the agricultural strategy of the XIth Plan. At the cutting edge, though, its implementation needs far greater dialogue, interaction and communication with farmers than is evident so far. Taking for granted that all is well on credit, insurance or risk mitigation would be misleading. There are other emerging challenges associated with crop diversification and rainbow agriculture. Encouraging private sector competition through alternative and imaginative financing mechanisms needs active encouragement.
The XIth Plan cannot be inclusive till agriculture can become truly comprehensive.