AGRARIAN CRISIS

   

Agrarian crisis in India:

                                               Aachal Burande

        

                India is the country of peasants. Initially 72% of the Indian population depends on the agriculture but now it decreased to 60%. Some of them taken it as the primary or secondary occupation & some are being forced for accepting this as an occupation. Agricultural crisis in India specially indicates 3 states i.e. Madhya Pradesh, Maharashtra & Karnataka. These states were facing droughts from last 4 to 5 years. The big issue in front of Indian government is the increasing rate of farmer’s suicide. When we think globally, it is not only is India but the rate here is much higher than other nations. The main reasons for farmer’s suicide are financial stress, loss of independence and control, sense of loss, geographical remoteness and potential of social isolation & untreated mental illness or depression. The financial perspective implies that the constant economical pressure related to the “farm crisis” and ongoing droughts & floods which also leads to depression and mental illness. Loss of independence is because of unable to control weather, government policies & sense of loss mainly because of fear of loss of crops, land, income, community, family or a way of life.

           

 When we talk about the historical background of India, we can’t forget the drought of 1965 & 1966. The miracle seeds we imported with help of the World Bank and US. This incidence sparked the Green Revolution in India. These miracle seeds resulted in the overuse of chemical fertilizers and it affected adversely on the quality of lands. This coupled with a reduction in the genetic variety of crops and 3 years of drought led to zero yield.

            Economically, this agrarian crisis affects the economy of India. Agriculture was considered as the backbone of Indian economy. It contributes almost 57% in the National Income in the early fifties (estimate). But steadily it decreased day by day. As in the year 2000-01, the contribution of GDP (Gross Development Product) halved up to 26% and now it is on the 13.09% as per the report of the Central Statistic Office (CSO).

            Reasons for the Indian Agrarian crisis are as follows:

1.)        Low level of Income of small farmers:

                                The Situation Assessment Survey of Farmers, 2017 (SAS), NSSO 75^TH round indicates that the monthly per capita income to a farmer household within 1 hectares land is much lower than the monthly per capita consumption expenditure.

2.)        Declining growth rate in Agriculture:

                           Statistics show that not only the contribution made by agricultural sector to the overall GDP has declined but also the growth of agriculture sector itself is declining gradually.

3.)        Liberal import of agricultural products:

                            Since the removal of quantitative restrictions and lowering of import duties were according to the restrictions of the World Trade Organization (WTO), the crash in the price of agricultural products is directly related to the liberalization policy of the government.

4.)        Reduction in agricultural subsidies:

                              This is main reason that why India is facing much problems than the other nations from Latin America. Here in India, $14 subsidy per hectare and in USA it is about $32.

5.)        Lack of easy and cheap loan to agriculture:

                               National commission of Agriculture headed by Dr. M. S. Swaminathan, also pointed out that after the LPG in 1991, the lending pattern commercial banks, including nationalized banks result that lone was not easily available and interest was not affordable & these accelerated the crisis in Indian Agrarian.

6.)        Decline in government investment in the Agricultural sector:

                            Studies shows that after the economic reforms started, the government’s expenditure and investment in the agricultural sector have been drastically reduced.

         

We should look forward toward the remedial measures for the betterment of Agricultural sector by imposing some ways. We can restrict on the importation of goods to protect our farmers. We can increase the subsidy and concession given to agricultural sector, credit facilities should be made easily available to the farmers, especially since the input cost of agriculture has gone up & Government should increase the investment and expenditure in the sector. This sector should made a profitable enterprise to pretend crisis. The most important is government should not acquire fertile land for SEZs and revise the policy on Special Economic Zones as it goes against the interest of farmers and the agricultural sector. The promises made at the time of signing the agreement to farmers these were never completed after.

              At last, we should think in the way that, “In a country where 60% of people depends on agriculture for their livelihood, it is better to become an agricultural force based on food security rather than a nuclear force.” – Dr. Swaminathan.

Ref:

   Videos based on subject by P. Sainath.

   Blogs by Dr. Swaminathan.

   Report of CSO & other research.