Date:02/03/2007 URL: http://www.thehindubusinessline.com/2007/03/02/stories/2007030201200800.htm

Back A poor harvest

Funds and schemes are aplenty, but implementation is the key to delivering farm performance.

What should the Finance Minister of one of world's fastest growing economies do to resurrect the country's moribund farm sector to climb 4 per cent from a sluggish 10-year annual average of 2.2-2.3 per cent? Admittedly, the Budget is neither designed nor intended to deliver the agriculture sector from its traditional yoke; yet, over the years, Budgets have pronounced futuristic policies. If there were expectations, in the context of soaring prices of essential food products, of some realistic and quickly doable proposals to augment production of major food crops and send a strong signal to all that farm policies are well on course, they were misplaced.

There are surely no quick-fix solutions to problems dogging Indian agriculture, yet, somewhere a long-term position needs to be taken on a sector that affects the livelihood of nearly 60 per cent of the population. The slew of Budget proposals include higher farm credit, expansion of irrigation, water management, weather insurance, direct fertiliser subsidy to farmers and production of high quality oilseeds and pulses — each important in itself, but unlikely to make a significant change even together. An intriguing question is whether there has been real progress in expanding irrigation facilities. According to the Economic Survey, between 1998-99 and 2003-04 (the latest year for which data are provided) the irrigated area under major crops (rice, wheat, coarse cereals, pulses, oilseeds) hardly increased; indeed, in some cases it has shrunk. The tangible outcome of the huge allocation for irrigation year after year deserves to be investigated.

Going beyond mere allocation of funds, the Government is surely duty-bound to provide a progress card to the nation. It is public money after all. Admittedly, there is no dearth of money or schemes. So, what stops the government from ensuring delivery of outcomes and benefits? The admission that delivery is lacking is a cruel joke that reflects poorly on governance. In the ultimate analysis, the Budget is a statement of performance and work plan of the government. It must reflect the commitment of the government to meeting the people's aspirations.

The aim of achieving 4 per cent farm sector growth has been repeated ad nauseum since July 2000 when the National Agricultural Policy was issued; but till today, there is no comprehensive and concrete action plan to realise the target. Farm credit expansion is welcome, but what about building repayment capacities among farmers? One is not sure if even the Agriculture Ministry has a clear vision of what should be done to boost farm production and productivity. It is time, not for making perfunctory policy proposals, but to move forward purposefully by first generating a national consensus on how best to realise farm growth potential. Otherwise, the country runs the risk of paying a heavy price in terms of social and political unrest.