ਉਤਪਾਦਨ, ਆਮਦਨ ਅਤੇ ਖਰੀਦ ਮੁਕਤੀ ਵਿੱਚ ਵਾਧਾ, ਅਰਥਿਕਤਾ ਦਾ ਅਧਾਰ ਬਣਦਾ ਹੈ ਪਰ ਇਸ ਬਜਟ ਵਿੱਚ ਇਸ ਸੰਬੰਧੀ ਕੁਝ ਨਹੀ। ਪਿੰਡਾ ਦੇ ਵਿਕਾਸ, ਖੇਤੀ ਅਧਾਰਿਤ ਉਦਯੋਗਾ ਲਈ ਕੁਝ ਨਹੀ ਰਖਿਆ ਗਿਆ। 5 ਏਕੜ ਤੋ ਘਟ ਜੋਤ ਵਾਲੇ ਕਿਸਾਨਾ ਨੂੰ ਸਲਾਨਾ 6000 ਰੂਪਏ ਜਾਂ ਮਹੀਨੇ ਵਿੱਚ 500 ਰੂਪਏ ਕੁਲ ਵਾ ਨਹੀ ਜਦੋ ਕਿ ਪਹਿਲਾ ਹੀ ਬਿਜਲੀ ਅਤੇ ਹੋਰ ਸਬਨਿਡਿਆ ਦੀ ਮਾਂਤਰਾ ਇਸ ਤੋ ਜਿਆਦਾ ਹੈ। ਅਸੰਗਠਿਤ ਖੇਤਰ ਦੇ 10 ਕਰੋੜ ਲੋਕਾ ਲਈ ਪੈਨਸ਼ਨ ਦੀ ਵਿਵਸਥਾ ਕਰਣੀ ਚੰਗੀ ਗੱਲ ਹੈ ਫਿਰ ਮੱਧ ਦਰਜੇ ਨੂੰ 5 ਲੱਖ ਤਕ ਦੀ ਆਮਦਨ ਤੋ ਟੈਕਸ ਮੁਕਤ ਕਰਨਾ ਸ਼ਲਾਘਾ ਯੋਗ ਹੈ, ਮਨਰੇਗਾ ਲਈ 60000 ਕਰੋੜ ਰਖਣੇ ਸਲਾਹੁਣਯੋਗ ਹੈ। ਕੁਲ ਮਿਲਾ ਕੇ ਇਹ ਬੱਜਟ ਚੋਣਾਂ ਨੂੰ ਸਾਹਮਣੇ ਰੱਖ ਕੇ ਪੇਸ਼ ਕੀਤਾ ਗਿਆ ਹੈ।

Albeit, it is an annual exercise that the commission for Agricultural costs and prices announces the minimum support prices of two dozen of crops, prior to their sowing, but only four are being procured by the Government, at those announced prices. Wheat and paddy are procured by Food Corporation of India along with the State Agencies to maintain the buffer food stocks at the central level. The cotton is procured by Cotton Corporation of India and Sugarcane by the Sugar Mills of the State ushering of the green revolution was largely dependent on the assured marketing, that proved a big gladiator to enhance the area and production of wheat and paddy, the staple crops of the country. The total production of food grains that was only 82.02 million tonnes in 1960-61 thrived to 129.59 million tonnes in 1980-81 and further rose to 271.96 million tonnes in  2016-17 that includes 163.29 million tonnes of Paddy and 96.64 million tonnes of wheat. The production of paddy was only 51.87 million tonnes and wheat was just 11.00 million tonnes in 1960-61. But the staggering results were obtained in the production of these two crops.
        By 1970 the country that was heavily dependent on food imports turned as an food exporting country because of the green revolution. At present it is the top exporter of paddy. In 2015-16, it exported 10.50 million tonnes of paddy and surpassed much ahead to the other rice exporting countries like Thailand, Vietnam, Pakistan,  U.S.A. and Mynamar.
        The new high yielding varieties of wheat and paddy were developed by the research Institutes and Agricultural Universities.  As Paddy and wheat both requires adequate quantity of water for irrigation, so the area under those crops escalated much higher in Punjab, Haryana and U.P. those had abundant water and particularly the ground water on which, 60 percent of the irrigation was dependent. So the farmers of those states diverted towards the cropping pattern of wheat and paddy. The Punjab and Haryana saw the staggering results in the output of these crops that is why these two states had been contributing about 80 percent in the total food stocks of the country.

        It is quite evident that the escalation of area under wheat and paddy was mainly resulted because of assured marketing as it was available to these two crops, whereas the area under other crops went on depleting. India is the largest producer, largest consumer and largest importer of pulses. As the states where the assured marketing was provided to wheat and paddy, the area under pulses remains stagnant or went on declining and the Import bills for pulses goes on rising, because of the surge in prices of pulses in other countries because of the limited supply. Area under pulses was 23.56 million hectares in 1960-61 and the total production was 12.70 million tonnes, but this area goes on rising till 1990-91 when the total area under pulses became 24.66 million hectares and total production was 14.26 million tonnes, but after that goes on declining. The announcement of higher and higher of minimum support prices was an big allurement to the farmers so again after 2006-07 the area started rising gradually. In 2007-08 it was again 23.63 million hectares with output of 14.76 million tonnes. The rise in the area of pulses was on the snail’s pace, even with the big jump of M.S.P. every year. In 2016-17, the total area under pulses increased to 28.86 million hectares with output to 22.14 million tonnes. It vindicated the contention that assured marketing is much more important than the allurement of higher but volatile and uncertain prices.
        The same happened with oil seeds production. The country went on importing more and more quantity of oil seeds at the hefty prices in the International market, though area under oil seeds thrived perpetually from 1960-61, but the demand exceeded supply. So the surge in output of oil was not commensurate with the demand of the country. In 1960-61 there were 13.77 million hectares under oil seeds with total production of 6.98 million tonnes. The area further increased to 17.60 million hectares with 9.37 million tonnes of production in 1980-81. In 2016-17 area under oil seeds thrived to 26.63 million hectares with production of 33.60 million tonnes. But area of certain oil seeds crops depleted much. The area under groundnut that was 6.46 million hectares in 1960-61 declined to 5.32 million hectares similarly the area under sunflower that was 2.34 million hectares depleted to only 0.37 million hectares in the same period.

             Pulses and oilseeds are the high valued crops those could be helpful to enhance the income of the farmers, but as shown by data concerned with these crops where the area under pulses had increased marginally, the area under oilseeds could not escalate significantly.  Since the inception of the minimum support price policy in Agriculture, when the M.S.P. of both the pulses and oilseeds were enhanced significantly, the area and output must have increased accordingly but while analysing the main reasons for this dismal situation, the lack of assured marketing was identified as one of the major factor. The new crop procurement policy announced by the Central Government looks as a most prudent policy that would mitigate the uncertainty as well as the fear of volatile and unfavourable prices of those crops.

        In this new procurement policy the government has envisaged the three alternatives. In the first, the additional crops would be procured by the Central Government with partnership of the concerned State Government. In second case the seller of those crops would be paid the balance of M.S.P. and the market price by the government, but the farmers would have to register themselves with the regulated market of the area. In the third option the private traders can procure those products but those traders would have to pay the minimum support prices as announced by the Central Government. While analysing the probable impact of these three options, the first one looks as the most prudent and appropriate to enhance the confidence of the farmers because the Government either Central or State would be responsible to pay the announced minimum support price. Definitely it would have very favourable impact. The area as well as output would escalate of those high value crops that includes the pulses and oil seeds in the country.

        Already the country is producing enough food grains, where the rice is being exported. The wheat prices in the International Markets are not attractive that is why the export of wheat is not economical. But once the area under pulses, oilseeds and other high value crops would increase it would reduce the import of those crops. It would not only save the precious foreign exchange but even the consumers would be recured to purchase adequate quantity at the reasonable prices.
        Already the sugarcane output of 30 million tonnes that is much higher than the required sugarcane for the demand of sugar  of the country that is estimated to be 25 million tonnes. The area under paddy can be diverted for high value crops without impacting the food stocks of the country.

       India is a country of small farmers, the large number of holdings belongs to marginal and small farmers below 2 hectares, those are 85.01 percent of the total holdings and holdings below 4 hectares are 95.05 percent of the total. Any agricultural policy must address the problems of this large number of farmers where the assured marketing is a significant imperative. As these farmers are to eke out their living by their farm income, they can’t adopt the crops those are involving even an iota of risk. That is why all such farmers are opting for the wheat and paddy being of their assured marketing at the announced prices.

        For drifting of their cropping pattern towards the high value crops, the assurance of the sale of their crops at the remunerative prices would be the most significant factor. Since the inception of the policy of announcement of minimum support prices, that includes the high value crops of pulses and oilseeds, no significant impact had been noticed either in enlargement of area or production of those crops rather the area and production of some of the pulses and oilseeds has depleted remarkably.

        While looking on the minimum support prices and the per hectare yield of those crops it is quite discernable that those crops are equally beneficial. The M.S.P. price of sunflower was only Rs.600 in 1990-91, but it was raised to Rs.4100 in 2017-18, similarly price of maize was raised to Rs.1425 from Rs.180 per quintal in the same period. Minimum support price of gram was raised to Rs.4000 per quintal in 2016-17 and that of soybean to Rs.3050, the price of Moong was raised to Rs.5575 and similarly the prices of other high value crops of pulses and oil seeds were raised. It was only because of the absence of assured marketing that the surge in area and output could not be registered.

        There are certain other high value crops those are being used for medicines and for other necessities. The fruits and vegetables are also in the list of high value crops, but those are affected by the big volatility in their prices. The lack of proper storage with the farmers to preserve them for sometime is also an impediment. Apart from minimising the post harvest losses, it is imperative to explore the Export potential, but assured marketing is the well tested gladiator to enhance the production of these products. Only in one year of 2017-18, the vegetables worth Rs.5182 crores and fruits of Rs.4229 crores had been exported from the country. It had been observed that the daily use items of potatoes and onions had much volatility in their prices that is why their production had been affected. So many times the onions had been imported from other countries to meet the demand of the masses but at the other time those had been exported. The production of these vegetables can be increased very easily but the volatility in prices affecting its production would have to be removed. How a small or marginal farmer can undertake the risk to grow such crops with the hope to raise his Income, without the assured marketing.

        Now when the new policy of procurement is announced, some of the high value crops of daily use including vegetables and fruits must be included in the list of state procurement on the basis of the high yielding crops of that area. The diversification of crops with the growing of other crops along with the traditional crops would promote the level of employment, adequate and regular use of machinery, proper use of inputs including water and enhancing of income through new policy of assured marketing.

        It has been observed that a few agro processing units are operating for value addition of agricultural products but uncertainty of raw material is assigned as the main hinderance for their sluggish development. Such impediments can also be removed by encouraging the contract farming between agro-processing unit and the farmers with the prudent and suitable legal frame work in the state. The rules to obtain the material from the farmers and the disposal of their product to the processing units must be justified, safe guarding the interest of the farmer as well the processors for the smooth functioning of Agro Processing Industry. It is never desirable that the nation may waste its precious sources. The sources must be utilized to the maximum for the welfare and uplift of the farmers and the general public. The contract farming, a sort of assured procurement could be the best option. The new procurement policy with the objective of assured marketing must boost the area under high value crops.
        For enhancing the income of the farmer, the hard realities those are confronting as constraints must be realised. The farm size is the most important factor of production, but area cannot be enhanced rather the size of the holdings would further deplete by division of land among family members. The yield of the crop is already at its saturation point particularly those of the principal crops, because of the application of the law of Diminishing marginal returns. But yield of high value crops can be enhanced being the new crops. Even the new varieties of those crops can be evolved, as small attention had been paid on research of those crops in the past.
        While analysing the overall situation of cropping pattern in the country, it can be concluded that state procurement of some other high value crops must have its favourable impact in the enhancement of the income of the farmers particularly the small scale farmers, those are below 5 acres but precautions to mitigate the challenges must be adopted while implementing this new procurement policy. The main among them is that the cropping pattern may not get drifted towards the high value crops, jeopardizing the food crops and food stocks of the country. As the new procurement policy would be adopted with the partnership of the states, so the states must identify the various zones even in the same states on the basis of the yield of the crop in the respective zone. The new procurement policy would prove much useful for enhancing the farm income, reducing of the imports of pulses and oilseeds, saving of the foreign exchange and moreover for the best utilization of the limited sources for the best interest of the country.

The Writer is a Senior Fellow of
Institute of Social Sciences, New Delhi

Indian Agriculture is burdened with 60 percent of population but contributing only 14 percent in the Gross Domestic product of the country, vindicated the contention that population engaged in Agriculture is facing the problem of underemployment resulting into low Income in this occupation and big gap between farm and non-farm Income. The vow of Prime Minister Mr. Narinder Modi to double the farm Income within 5 years is a laudable and it should be bolstered, but it is more important to watch the efficacy of the gladiators employed to accomplish this big target. Land is the most crucial factor for agricultural production for which the supply is inelastic and invariable. Ostensibly the yield of crops can be enhanced to some extent as the law of Diminihing Marginal Returns is more applicable in agriculture, where the yield has already reached at its saturation point. There remain, the other options to escalate the Income of farming households.

        While analysing the overall agriculture situation the model of dairy cooperatives already a tested model looks much prudent. In this model a milk seller in the village, after receiving the value of his milk still remains a shareholder in profit, earned by Cooperative Federation at the District, State and National level. Even he is the shareholder in profits earned by export of dairy products that may never be possible by a single farmer. Apart from earning of profits, the model is a big succour to protect the farmer from the monopolistic tendencies of the private companies and dealers of dairy products in the area. The implementation and encouragement to this model was provided by the prescriptives of the Government. But why such a patronage to this most appropriate model is not provided to other agricultural products is inscrutable and inexplicable.

            The often quoted quotation of poverty amidst plenty is given in reference to agricultural business, that when there is more of production, there would be glut in the market and prices would fell down and instead the farmer may become rich, his economic position remains invariable. On the other side when there is hike in the price there is small quantity to sell because of less of production. The volatility of prices of vegetables and fruits is so frequent. At the same time there is a big difference in the harvest and the retail price, particularly in daily use products of vegetables and fruits. Some times the retail prices becomes double and even more then the harvest prices. But what is the share of the farmer in those enhanced prices. Nothing, the farmer’s share can be easily created through the cooperative model replicable to the dairy cooperatives.

            Basmati is a variety of rice that is grown on the river banks. India and Pakistan holds monopoly of this product. India is exporting Basmati worth thousands of crores of rupees in which the contribution of Punjab is about 80 percent. Suppose the farmer is selling Basmati at Rs.2000/- per qtl. the exporter is selling it at Rs.8000/- per qtl. Albeit the basmati needs the storage, shelling, loading and transportation etc, but what is the share of the farmer in that huge profit earned by the traders. It is difficult for a farmer to perform all these services, irrespective of the size of the holding but the Cooperative Society of the farmers or the Basmati producer’s company can easily perform all such activities to create the share of the farmer in those profits. Small farmers Agricultural Business consortium, the Central Government Agency is encouraging to form the Farm Producer’s Companies, but it had been observed that no significant progress could be made on this front but if the cooperative societies for such functions may be encouraged and helped with guidance, the number of farmers can join it as it has appeared in the dairy cooperatives. Success of the processing unit depends on the concatenation of different factors. The business and professional acumen is required that can easily be provided in this model.

        There is a big potential of value addition in the Agro products through Agro-Processing Units. The products of vegetables, fruits, pulses and oil seeds etc have big scope for their processing, but it can’t be put on a farmer, but the cooperative unit on the basis of the product can be formed to create the share of the farmers. Similarly number of products needs long term preservation, that needs the modern stores, equipped with required techniques and instruments, that is out of the reach of the farmer, but cooperatives of the farmers, in their villages could be the best option.

            83 percent of the farm holdings are below the 5 acres in the Punjab, they are mainly interested in assured marketing of their products. The research for availing of higher yield of different crops had given very good results those can replace the area under wheat and paddy. The yield of maize that was just 798 kg per hectare in 1960-61 has escalated to 3892 kgs in 2016-17, similarly cotton as 756 kgs from 260 kgs, grond nut to 1920 kgs from 926 kgs Mustered as 1412 kgs from 505 kgs and sugarcane as 813 qts from 340 qts per hectare in the same period. Same better results were obtained in other crops. But the area under these crops has depleted instead of increasing. The area under maize depleted to 1.16 lakh hectares from 3.27 lakh hectares, Cotton  to 2.85 lakh hectares from 4.47 lakh hectares. Sugarcane to 88000 hectares from 1.33 lakh hectares and ground nut to only 12000 hectares from 67000 hectares, Mustard to 31000 hectares from 1.09 lakh hectares from 1960-61 to 2016-17.  Now the Government of India has announced an new policy of procurement of other products with the collaboration of State Governments. Good results are expected on the front of diversification of crops. Lack of adequate raw material had been a major impediment in the installation of Agro Processing Units for value addition. Here again this model is the best option so to protect the farmers from their exploitation from traders in the value addition business for those crops.

            But it is equally important to shift the population from farm to non farm sector, where the cooperative model could be much helpful to generation employment. It is often quoted that cooperatives have failed in India but it must succeed. The cooperative model can dovetail agricultural marketing with processing and it can be helpful to enhance the income of the farm sector.
The Writer is a Senior Fellow of
Institute of Social Sciences, New Delhi

Paddy straw burning has become a permanent Phenomena in Northern states of Punjab, Haryana and  U.P. Last year it emerged as a big havoc as the smoke of this burning, engulfed all these states and particularly the capital area of Delhi where it spread profusely making the abominable atmosphere in this area. Ostensibly the administration must have realized that the coercion to mitigate this plight would be ludicrous, that is why the Central Government allotted Rs.1151 crores to address this problem in Punjab. The policy of persuasion is adopted. The provision is made to purchase 14000 machines to mange the straw in the fields but till now only 500 machines could be procured, though the harvesting of paddy is expected to be started by the end of September and that would continue till the beginning of November.
    Actually the farmer is not burning straw diliberately to create any problem, he is concious to sow the subsequent crop of wheat where the gap between harvesting of paddy and sowing of wheat is very small. He has to resort to straw burning to clear the field prior to preparing the seed bed for next crop. He can not wait long to let the straw be absorbed in the field in long run. Inspite of that fact that 40000 complaints of straw burning were registered last year but how far it is justified to waste time and money where there were no deliberate intentions to create any problem and as the fields are adjoining with each other, it becomes difficult to prove the fault of a particular farmer. More over burning of straw that has its attributes for value addition must have its sustainable and permanent solution.
    According to agricultural experts, it involves about Rs.1500/- to Rs.2000/- per acre to clear the field through other means including the cost of diesel apart from the time spent becomes unbearable for the farmer. There are about 74 percent of the holdings those are below 5 acres and no farmer can take the risk to forego the much remunerative crop of wheat that is a staple crop and major food item of Punjab. In 2016 the total area under paddy was about 2.8 million hectares that thrived to 3.0 million hectares in 2017 and it is very interesting that this year when the hike of Rs.250 per quintal in the minimum support price of paddy was announced, the transplantation of paddy was almost complete.
       As 60 percent of the irrigation water is obtained from underground, so the water level has depleted much throughout the state, cultivation of paddy is assigned as a major reason for that. Among 147 block of the state, the water level in 100 blocks has gone so low that it is emerging as a problem for installation of tubewell and for its operation. But is it possible to force the farmer that he may not grow paddy and adopt the other crops?  It is only the assured provision with higher M.S.P. accompanied by state procurement that may turn the other crops as equally beneficial, to change the proclivity of the farmer to grow the alternative crops. 
       Actually the farmer is more interested in assured marketing that is provided in case of  wheat and paddy only as the Government assured the procurement through its own agencies. Every year the farmer do not bother to wait for the accouncement of the minimum support price for wheat and paddy. In Punjab the cropping pattern has turned towards wheat and paddy only, where these two crops are covering about 70 percent area of the state.
   
        Number of times the Government, the Universities and experts are recommending the diversification, even the  announcement for much higher M.S.P. of other crops is made every year, only this year the hike in the price of Moong was announced as Rs.1400 per quintal,  but the situation would remain invariable as it happened earlier, lack of Government procurement of other crops is the only factor that could not attract the farmers to enhance their area under those crops. There would be no problem on the front of food stocks even if area under paddy may be reduced to its half but the reduction in area can’t be enforced on the farmers.

    Looking on the invariable cropping pattern and the emerging problem of straw burning, it needs o be addressed socially with the patronage of the Government. Looking on the attributes of paddy straw for its value addition in the form of cardboard, paper, cattle feed, Bio-fuel etc. it is most prudent to encourage the installation of small units to save this straw from its burning. It can’t be expected that the farmer would install his Industrial Unit irrespective of the size of the farm. Big but few Industrial units can’t be a workable idea as it involves lot of transportation cost, because the straw is spread in the entirety of the area. It is estimated that about 20 million tones of straw is produced every year that can be turned as useful products.

    The paradigm of dairy is the most appropriate alternative for it. The dairy cooperatives have contributed a lot in the Punjab Economy. It is only Punjab, where dairy is contributing about 9 percent in the state gross domestic product of Punjab in which the role of dairy cooperatives is laudable. As the small scale units are more suitable for such Industrial Units, those should be installed in all the blocks of the State where the farmers of the area should be made shareholders. Though the farmers would be getting small price of their straw, but with the value addition they would avail the bonus on the pattern of dairy on the basis of their share they had contributed in the cooperative venture. The straw that was a big problem that would turn as an useful product in different shapes but at the same time it would generate income and employment simultaneously in all the blocks. As the infrastructure in the form of electricity, roads, banks, workshops etc are available everywhere and there is no dearth of raw material so all such units under small scale of production would run successfully.

    The Writer is a Senior Fellow of
Institutes of Social Sciences, New Delhi

27 Sept. 2018

I was a student of Government College Dharamsala for my B.Ed in 1966. The college was at a very beautiful place near Dhaula Dar Hills. The atmosphere was much academic. The College was organizing a variety of seminars of the Pedagogy subjects in which the educational experts, the students and the prominent personalities of the city had been participating. In one of the Seminars a "white" gentleman who happened to be a General Manager of the New Egerton Woolen Mills of Dhariwal to which I belongs.
Afterwards while taking the Tea I was interested to Conserve with him but was hesitant because of my achles-heel of fluent English. But any how I mustered the courage and went ahead and I just told him that I belongs to Dhariwal. I saw a glitter of Joy in his eyes as if the treasure of old pleasures had exploded for him. He was remembering the big Canal of Dhariwal dividing the city in two parts, the sprawling playgrounds adjoining the Mills & Schools and particularly the golf  ground that was in more than hundreds of acres where he had been playing for three decades of his life, The old trees, particularly the pristine breeze blowing in the Morning and the Sunshine of Winter. The sparking glow on his face was inexplicable.  He was enquiring almost certain persons of Dhariwal about whom I was not aware. We had a long chat and ultimately he delivered his visiting card bearing his Name and Address as "Mr. Hallet Artist" and took the promise that I may Visit his residence on the coming Sunday.
But I could not went because of my pre settled academic assignment. But only the next day he came to my hostel and the next Sunday I went to his edifice between Dharamsala and Mecloadgunj. On that day, He had invited another family and he introduced me to them. He was Mr. Butler Worth from Newzealand but he has also retired from Dhariwal Mills as head of the Worsted department, but now settled permanently at Dharamsala. Where he was rearing hares and was exporting their wool to the other countries.
Then I met both of them incessantly and observed a stark variation in both the personalities. Mr. Hallet was bachelor, He was a lover of Art particularly a Known Painter, the music was always playing in his house. He was not fond of liquor and could not be allured to any business preposition. It was inscrutable that why he was living alone at this place. Mr. Butler Worth was always interested in business, no interest in Art & Music, fond of liquor as I Observed that on taking lunch at his residence, only myself and Mr. Hallet had not taken beer while all the family members were enjoying beer. Similarly I was a student, much younger in age, no Business interest. We were from different continents, I was from Asia, Mr. Hallet from Europe whereas Mr. Butler Worth was from Australian continent. Then what was common bond of our relationship that we discovered was our city of Dhariwal to which we all the three had our attachments.
The Writer is a senior fellow of
Institute of Social Sciences,
New Delhi