Page 151 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Unit 12: Green Revolution

“The term also includes tribal families sometimes engaged in shifting cultivation, and in the collection and use Notes
of non-timber forest products. In all cases, both men and women should receive equal attention.”
Statement of the Problem of Farmers

Farmers have to face the fury of nature in the form of drought, unseasonal and heavy rain which
causes extensive damage to crops.
Institutional support to small farmers is weak. Even now in many parts of India, paddy is spread on
the roads for drying. The loss due to lack of proper storage and maintenance due to spoilage is as
heavy as 30 per cent in the case of fruits and vegetables.
The cost of production is invariably higher than the minimum support price, due to ever-increasing
price of diesel and other inputs.
Capital formation in agriculture and allied sectors as percentage of Gross Domestic Product (GDP)
started declining in the 80’s and is only now being reversed. This has adversely affected irrigation
and rural infrastructure. As a consequence, small farm families commit suicides and the number of
suicides has been growing in India during the last five years. The situation is particularly alarming in
Vidarbha region of Maharashtra. The government has identified 31 districts where farmer suicides
have been reported. These are spread over Maharashtra. Andhra Pradesh, Karhataka and Kerala.
The Prime Minister felt so much disturbed that he undertook a visit of Vidarbha and declared a
package of Rs 4,000 crores to improve the lot of farmers and to alleviate their pathetic condition
decided to waive off heavy loans undertaken by them. The Government agreed to provide a subsidy
to banks and co-operative credit institutions to enable them to accommodate the impact of loan waiver
by making a provision in the budget. The loan waiver cannot be restricted to one state only, but will
have to be provided to all states affected by farmers’ distress.
Since the cost-risk structure of farming is becoming adverse, indebtedness is growing among farmers.
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According to NSS Survey - 59 round, 55 percent of the farm households are in debt in 2003. The
average per capita monthly consumption expenditure of farm households across India was ` 503 in
2003.
Endemic hunger (i.e. chronic malnutrition) is high both in families without assets like land or livestock,
as well as those with small land holdings without access to irrigation.
Only 10 per cent of farmers are covered by crop insurance. Farm families are also not covered by
health insurance.
Women, by and large, have been denied the benefit of Kisan Credit Card System.
Strategy to Improve the Economic Condition of Farmers
Outlining the basic philosophy of the National Commission on Farmers, the recommendations
emphasize the need to increase farm productivity and profitity in perpetuity without ecological harm.
If the co-adopts this strategy, the present agricultural crisis then be converted in an opportunity for
not only rever the decline, but for taking our agricultural evolve forward. For this purpose, it would
be essential to be the gap between potential and actual yields in agriculture. This will require the
intensive introduction of muti reinforcing packages of technology, services and public policies.
This Agricultural Renewal Action Plan has components which include the following :
(1) Soil health enhancement : Agricultural versities, research institutes, Krishi Vigyan Kend
fertilizer companies, states department of agriculture farmers’ associations should aim at
increasing the productivity potential of the soils by paying adequate attend to the chemistry
and physics of soils (macro and nutrients) and microbiology. Dry farming areas receive special
attention.
(2) Irrigation Water Supply Augmentation Demand Management : National Commission on
Farmers made a very forthright declaration : Water is a good and a social resource and not
private property privatization of its distribution is fraught with and could lead to water wars in
local comunit Improving supply through rainwater harvesting and charge of aquifers should
become mandatory.

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