Monday, March 10, 2008

Agri crisis budget


No one is opposing the proactive approach of the union government to readdress the agricultural crisis in the country. Agriculture being the foundation stone of India, letting it suffer is a crime. Knowing well the compounding trouble in the crucial socio-economic life line, P. Chidambaram was compelled to focus on the modes of reducing and removing the farmer’s stress. The simple solution which the finance minister gave in the latest union budget was to dole out Rs. 60,000 crores as loan waiver amount to the 3% of the national defaulters. According to the majority of the research studies only 5% of the loan beneficiaries have not paid the due amount. In this defaulter’s list rich agricultural states like Punjab and Haryana are leading. Then to whom is this loan waiver grant going to reach?


Most of the worst affected farmer stress zones are in Eastern Maharashtra, Andhra Pradesh and Northern Karnataka. Selected areas of Tamil Nadu, Kerala and Orissa are also undergoing the agricultural crisis. Instead of attacking the problem at the root, F.M has blankly allocated huge sum of money. This has created a big hue and cry among the public. Surprisingly many farmers have opposed this blind approach to the agricultural sector.


The UPA government’s intention to save the dying farmers is not backed by pragmatic policies. Like the NDA coalition, this political configuration is moving towards politically dreadful pit. Despite severe drubbing given to the media manipulative and empty advertisement dependent NDA in 2004 general elections, the present ruling front has not learnt the adequate lesson. The political managers of the Congress party think that by giving crores of rupees and organizing a kisan rally, votes can be bought. The time has changed and the public has got good enlightenment about the non performers. When it comes to voting they show their anger in ample measures. Then the UPA will get the real medicine of its life. Fortunately the opposition camp is divided. This will give an edge to the Congress party to emerge as the single largest bloc in the next election.


The electoral dividend cannot be the sole criteria for budget making. A good and constructive budget needs to address current problems with long term strengthening of the agricultural sector. Any short sighted approach will shake the structure of the economy and society. In order to ward off the crisis the following steps may be considered.


1. Draw the agricultural map of the country. As the service sector is zooming at super speed eating away agricultural lands, the old data and details about the agricultural economy needs an update.
2. Classification of resource rich and resource poor areas is mandatory
3. Region specific problems and solutions need to be articulated
4. An action force to implement the identified solutions to be put in place at the earliest
5. Avoid political gimmicks and start listening to the agricultural experts like M.S. Swaminathan
6. Red tape and the usual bureaucratic troubles should be removed at the earliest to fasten the implementation of the policies
7. This sensitive sector cannot be handled by cricket crazy agriculture minister and corporate giants operated finance minister
8. Leave agriculture to the experts and watch the development
9. Infusing the latest knowledge, technology, easy credit facilities and market access are enough for the stress free agricultural growth
10. Fortune at the bottom of the pyramid requires ethical tapping and sincere handling

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