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Investment versus Subsisy

This is a remarkable book on Indian agriculture  from a well known columnist and speaker  on the subject.  The remarkable fact about  Mr. Sud’s analysis, whether  in the print or the electronic media, and  on a wide range of subjects – the price of onions, or the efficacy of  organic  agriculture, or the reasons for farmers suicides is   that he marshals empirical evidence to  back up his point of view.  There are few who would disagree with  his analysis, though as is to be expected, there is bound  to be  a healthy difference of opinion on the way forward.  In fact as  TN Ninan writes in the Foreword : Change is easiest when  you have an empty palette. Populate the palette fully and change becomes difficult; too many things come in the way. And so it has been in agriculture. When half  the population ( of  India)lives off the land, most of them  eking out a marginal existence, change has to be introduced carefully…

It is not that the problems are not well known or documented. There are some things which are ‘no –brainers’ , but  the deep entanglement , and the inability to cut through the maze because of  ‘short –term  considerations’ has ensured that this sector has  not been able to  garner the benefits of  the liberalization regime. Also, in a way, the country has not been able to get out of the Green revolution syndrome. Interventions during the GR period were effective to tackle the problems then – however,  the same set of solutions cannot be applied as a silver bullet for all times, all crops, all seasons and all land –holding patterns.  This had worked well for  a while, and the  agricultural output  grew significantly faster than  the  population for the  nearly three decades.  Then the momentum was lost , and  rather than  ‘investing ‘ in agriculture, the softer option of ‘subsidizing inputs’ became the dominant mantra.  Subsidies have the great advantage of being easier to implement, and also afford greater flexibility to accommodate patronage.

In the lead  essay ‘ the Green revolution : what went wrong ?’ , he has identified  soil fatigue, land degradation, vanishing water, low capital formation, credit, seeds, fertilizer and irrigation  as the issues that need immediate attention. He shows  the inter connectedness of all these factors, and the problem that the government often looks at all these in distinct ‘silos’.  Moreover even as the ICAR/DARE(Indian Council of Agriculture Research /Department of Agriculture research and extension)  and the DAC (department of Agriculture and Co-operation)  are  both part of the Ministry of Agriculture and under  the same Minister, the ground level co-operation is not eh way it should be. In a later chapter ‘Research and Human Resource Development’, he rues the fact that  bureaucrats have tried to ride rough shod over the agricultural scientists, and often not realized that investments in agriculture research by their very nature are more long term. He is critical of trying to measure ICAR  by the standards of CSIR because the two operate in entirely different domains. |

However, to revert to the main argument on the  reasons for the inability of the GR to  extend its shelf life beyond the designated areas and crops, he points out that  procurement, marketing and price support operations have never really been as effective for pulses, oilseeds and coarse cereals as has been the case for wheat and rice, which has always received the unstinted support  of the government. The reason is  the obvious : wheat and rice are basic cereals, and governments cannot afford to make any  mistakes on  these crops.  However , it must be  mentioned that  from the time of the publication of this book, focused steps have been taken  by the government to address these issues.  Thus the National Food Security Mission  is addressing the issue of productivity, especially yield gaps in  all the districts which have the potential to  raise the production of  cereals and pulses.  The RKVY (Rashtriya Krishi Vikas Yojana) addresses the issue of capital  formation in agriculture, and has incentivized states to pump money into the agriculture and allied sectors.  The  sectors identified by Sud  as  ‘Drivers of future Growth’  have been more or less accepted  by the government, even though the scale and scope of investments  still offers scope for further improvement. Take bee  keeping for example.  As pointed out by him, while traditional  bee keeping continues to provide supplementary income and  livelihoods, especially as market linkages are becoming stronger,  agri entrepreneurs are also adopting  the European   business model of ‘migratory  bee keeping’- moving  their bee colonies from one area to another to offer pollination services, which are  valued higher than the ‘honey’,’ bee venom’ and the ‘royal  jelly’ and ‘beeswax’, all of which have clearly identified  niche markets.  The National Bee Board is currently in the process of establishing a world class  honey testing laboratory to address the issues of traceability  and residue monitoring.

Sud  has also identified organic farming, vermiculture, biodynamic agriculture , conservation agriculture  and bio technology as  the novel farming techniques  and practices which  have still not received the required policy or funding support from  either the central or the state governments.  The last chapter is on climate change , global warming and the impact on agriculture.  While the ICAR and the DAC have started working on these issues, he  suggests that these should  be  treated both as ‘Important and URGENT ‘.

Currently, the Agriculture editor of Business Standard , which has also brought out the publication, he  has written for  the Indian Express, Times of India and several other leading journals in the country, and has addressed professional and lay audiences across the country, including the  training programmes at the LBS National academy of Administration. His views  have been non dogmatic, and he has never taken the typical ‘state versus market’ approach  in his writings.  Both have a complimentary role : state intervention must be efficient, and  market regulations must be effective.