Modi Government and Agriculture

To rev up agriculture on a higher growth trajectory one needs to have a clear vision and undertake major initiatives. This can be a sign of true inclusive growth.

The government initiative in favour of farmers is apparently lacking. Among the many mass slogans given and programmes launched like Swachh Bharat, Jan Dhan Yojana, Digital India etc.  farmers seem to have been left behind. 2014 did not bore well for the Indian farmer, as a 12 percent deficiency in monsoon in land where more than half of the gross cropped area is rainfed.  Almost all crops-kharif, rabi, cotton , etc. suffered productivity losses. Only less than 5 percent farmers have crop insurance. This meant that the year spelt falling farm incomes and increased distress among farmers.

Government has given food and fertiliser subsidies to the tune of Rs. 2 lakh crores which is 10 times the public investment in agriculture. The government should target these two subsidies and implement cash transfer schemes instead. This will save a huge amount which can be channelized towards agriculture via investments in water, agriculture, R&D, rural roads, etc. Such public investments will give 5-10 percent higher returns and can guarantee food security.

All these investments can also help drought-proof Indian agriculture and help them cope with the extremities of climate and thus have a stable income. Else, the voice for loan-waiver will only grow louder- a problem which is widespread in Andhra Pradesh and Maharashtra. It is not far when the same can spill to fully irrigated states like Punjab and Haryana.

A laudable measure taken by the government is putting off the implementation of National Food Security Act, given the huge leakages in public distribution systems which were hovering around 40-50 percent. The government needs to show similar alacrity in agri-food space and soon move towards a culture of investments rather than promoting subsidies and loan waivers.