Overview for India Rich Agriculture: Poor Farmers
Green revolution strategy developed India's agriculture sector phenomenally from 1970 to 1990 and made India self sufficient in food grains and other agricultural commodities. The limitation of small size of the farms was made good by a package of inputs and small farmers of India competed well with developed countries. However, since 1990s and during the last five years farmers are facing the problem of decreasing income and many farmers have committed suicide during the last two years. The need has arisen for polity sift from farms i.e. production to farmers i.e. income. There is no concreted thinking on income policy for farmers unlike the developed countries. Te book proposes to present design of income polity for farmers suiting Indiaâ€™s over farms and the farmers is presented to understand the structure of the farm economy and type of farmers for whom the income policy is designed. It also looks into the present income level of the farmers and limitations of the data in this respect. Sheer number of farmers producing different commodities is so large that it is a complicated task to have a homogenous in India's agriculture to increase farmers' income is small size of farm. The partnership farming through an incentive mechanism can bring small and large farmers together for commercial management f farms for increasing farmersâ€™ income. N income policy for farmers is designed keeping in view the financial constraints. The policy is a mix of direct and indirect incentives in money terms for increasing income. Such a kit is designed based on the level of agricultural development in different States in India. Any policy to be effectively implemented requires financial resources for a fairly long period of time. India has huge foreign exchange reserves of about $154.1 billion (April, 2006) which have been sterilized for fear of inflation. A case has been made out for use $10-15 billion to implement income policy without crossing safe limit of FE Reserves. The income generation capacity of the farmer commensurate with the efficiency in production is the key to integrated Indian agriculture in world trade in agricultural commodities. Financially weak farmers will hardly be able to face the competition from the developed countries. The strategy to face and welcome the WTO is spelt out in the light of Agreement on Agriculture discussed in Doha, Cancun and Hong Kong round of negotiations. The Government needs to change its policy gear from production economics to income economics.
R.L. Pitale (Author)
Dr. R.L. Pitale belongs to Nagpur (Vidarbha). M.A. economics and Ph.D. from Nagpur university and M.Sc. in National Development and Project Planning, Bradford university, U.K. He was awarded Gold and Silver medals in economics and King Edward Memorial Fellowship and Maharashtra Government fellowship. He is the Overseas fellow of the Economic Development Institute (EDI), World bank. He stated his career as Lecturer in economics in King Edward College (now Vidarbha Mahavidlaya), Amravati (Maharashtra) in 1962. He joined the Indian economic service (IES), Government of India, in the batch, in 1968 and held senior positions in the government. He was Adviser, Commission for Agriculture Costs and Prices (CACP), Joint Secretary, Ministry of Planning and Programme Implementation and economic Adviser, Wage Board for Sugar Industry, Ministry of labour. He was deputed as Professor of economics, National Academy of Administration, Mussoorie and Officer on Special Duty, Industrial development bank of India, Mumbai. He was on Commonwealth Secretariat assignment as economist (Policy Coordination), Ministry of Finance, Kingdom of Tonga (South Pacific), He worked as Special Director, BIFR and is currently Member (Part Time), national Commission on farmers, Ministry of Agriculture. He has specialized in project appraisal and foreign trade. He has [published number of papers in economic Times, Financial express and other periodicals. His main interest now is to take up the problems of farmers who are suffering economic crisis and evolve an income policy for them. The present book is a step forward in that direction.