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An article on “Marginalization of Agriculture in India”.

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Yours Truly said…
A point of view to certainly think about and act. But this too smells of prejudice and a flavor of vested interest.

Isn't it also true that agricultural equipment is available in India at subsidised rates, not to say farmers get very cheap electricity to operate these on the farmlands. Also, don't we keep hearing of lakhs of rupees of loans being "maaf"-ed, when there is not enough produce (which is almost every season)?

I do agree with the fact that illiteracy and lack of proper training causes this. And what's more, I also strongly feel that rather than the govt. being the villian due to agricultural policies, it is the general tendency of bureaucracy that's the bane. E.g. We might hear of netas declaring benefits for the farmers, but at the grass-roots, it is the local officer (an essentially self-important govt employee) who's gonna implement them. So maybe (s)he takes advantage of this illiteracy and lack of awareness to exploit the farmers. The problem I think boils down to the fundamental problem in any sector across any part of India - that of babudom. When do we realize that we are free of the British rule, that it was THEY who had an interest in creating supercilious babus out of our own people, whereas WE are supposed to help each other as fellow-countrymen and prosper together !

I therefore feel that the implementation system is more at fault than anything. I am not saying that the farmers are rich or aren't exploited, but I don't necessarily agree with every allegation that the govt. policy is totally faulty :)
Siddhesh said…
Yep. I agree with u Madhav. There are times when people (especially opposition parties) are just trying to find a scapegoat to blame everything, and the Govt turns out to be the best bet. The biggest example of this is budget. As soon as a budget is released everyone is ready with their guns to fire at govt. Why? I mean how can you get a perfect budget!!!
In fact, recently I read that the "Mid-day" meal scheme run by the govt has been very much successful in getting children to schools. The urban people like me who dont hv to worry about the daily meal, usually criticize the scheme saying it is waste of money, chance of children getting poisoned, etc. But then there people who dont get any food, for them food, whether it is high quality or low quality, its food for them.
The reason why I shared this article is that it was something I never heard of "negative subsidy". In fact, whenever I read abt these farmer stories, it reminds me of the 10th ka chapter "Laal Chikhal".
Yours Truly said…
Yes. As always, very perspicaciously put, Siddhesh. Your MDM Scheme example really set me thinking. In the process I was reminded of a commencement address JK Rowling had given at Harvard last year. She had talked about the importance of imagination and empathy - put yourself in someone else's shoes and imagine how their life and troubles must be from their perspective. I think you will appreciate its content as much as I did... So I dug it up - go read it here:
http://harvardmagazine.com/commencement/the-fringe-benefits-failure-the-importance-imagination.

On a different note, I don't know of "Laal Chikhal". Was it in your Higher Marathi text? I know of a deadly story you guys had called "Smashanatle Sone" or something. And "Antu Barwa" of course :)
(Sorry for the randomness!)
Siddhesh said…
Yea, I remember this article. Helped me a lot last year. Worth reading it again :)
Siddhesh said…
I think the article holds relevance in the context of pre economic liberalisation era. However, the same looses its ground post 1991 reforms headed by Dr. Manmohan Singh.

Lets Consider this article in todays context.

Agriculture had been doing well recently, averaging almost 4% growth for five years. Historically, bumper harvests usually mean low prices, and high prices usually mean bad harvests. But currently farmers are enjoying both bumper harvests and high prices. The October-December data show a fall in agricultural GDP of 2.2%. This is misleading. First, growth in the same quarter of 2007 was a huge 6.9%, and decline from such a high base is not bad. Second, agricultural GDP grew at 3% and 2.7% in the two earlier quarters, so the third quarter decline may be a blip.

North India had a bumper monsoon this time. But rainfall was seriously deficient in some parts of central India and the Deccan. Its true that farmers in places like Maharashtra have been committing suicides. But the core reason here lies in the ineffective implementation of the government policies, as aptly put by Madhav. To combat this issue, central government directly waived off the farmer's loans, so that there is no question of middle men galloping the subsidy.

Now the question of agriculture being the best of vocation in India. This is indeed a serious issue. Agriculture's contribution to India's GDP is merely 18.5%, while the service sector is now the largest contributor with 54%. However, agriculture continues to employ about 60% of India's workforce. This explains author's grievance (author is an Agriculturist and Peasant Leader founder of Shetkari Sanghatana - Farmers' Organisation in Maharashtra and at national level, of the Kisan Coordination Committee). However, I would believe that India owe its growth in recent years to the service sector.

The author says that the government did put up a show of ensuring remunerative prices by introducing a system of Minimum Support Price (MSP). But it manipulated the system, to make it work not as the minimum price the farmers should receive but as the signal of the maximum price the traders need to pay for the agricultural produce. I think its a very negative opinion of the MSP policy and needs review.

Author says the state policy on agriculture has essentially been one that has exploited ‘Bharat’ for the benefit of ‘India’.
The Consumer Price Index for Rural Labour was up a whopping 11.35% in January, mainly due to high food prices. But good job opportunities thrown up by buoyant agriculture for several years, plus the National Rural Employment Guarantee Scheme, have combined to keep rural wages high. Several states have revised minimum wages upward, benefiting workers under NREGS.

The inflation figure which came out on last thurday was a seven year low (2.4%). However, it is mainly due to falling prices of industry goods. Food prices continue to be high, which is a pain in the neck of the government.

The author could be right, in terms of the adverse effects of pre-liberalisation policies on agriculture sector. However, in today's context, I think the incumbent government has shown right attitude for overall development which includes agricultural sector as well.
Siddhesh said…
I am glad that I asked you to comment. Excellent analysis mate!!

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