Credit: Most independent analysts have observed that both at the national level (and even in states) the large and medium farmer has better access to institutional credit. Tenant and marginal farmers in Rainfed areas are deprived of institutional credit because of several factors, including the non availability of bank branches, or lack of manpower. Many state governments have launched ambitious programmes for the universalization of Kisan Credit cards (KCC) but the outcome has been partially successful. A Mission Mode programme should be taken up by GoI and NABARD to cover all ‘cultivators’ with a KCC. The distinction between cultivator and farmer is important, because tenant farmers and oral lessees are finding it extremely difficult to access credit.
AgriMatters proposes that establishment of rural bank branches and bridging their viability gap for the first ten years should be the first charge on the RIDF funds. The establishment of a proper banking infrastructure and strengthening the PACCS is one way of extending agricultural credit. AgriMatters also recommends that rate of credit for marginal and small farmers should be 4%, and for the rest it may be capped at 5 %.
Credit should also be extended to those engaged in agro processing, especially when the processing industry or organization is in the co-op or the SME sector. It has to be understood that the turnaround time in agro processing sector is higher than in a typical manufacturing or services operation , and many new agribusiness enterprises are floundering on account of this ‘liquidity crunch’.
Extension Administration
Most agriculture departments have reported staff shortages at village and Block levels. As the cadre is transferable across the state, it is generally seen that remoter blocks in districts farthest from state HQs have the least manpower. The problem can be addressed systematically only if the recruitment of districts and sub district level staff is made by the Zilla Panchayat. The State Department of Agriculture will have the responsibility of regular up gradation of skill- sets. Gram Panchayat should also be encouraged to recruit “livelihood associates’ : jeebika sahayaks – for taking care of all livelihood issues in the GP area. In west Bengal, several GPs have appointed Livelihood associates, who have been trained by the Agriculture Department to enhance farmers’ skills in farming and associated activities. This is important from another perspective. The lack of convergence at village level among the departments of agriculture, horticulture, animal husbandry and fisheries and co-operation department can be overcome by having extension officials directly under the Gram Panchayat.
There is also need to tap the potential of ex servicemen in this area. Every year, over sixty to seventy thousand soldiers are demobilized at fairly young age. Those among them who are interested and willing can be given training and given specific tasks under the NFSM, NHM and other Mission mode projects which need manpower for a specific period. the experience of our state is that field consultants recruited under NHM/NFSM leave their assignments as soon as they get another placement.
Marketing Reforms
Most state governments have set up Committees to make recommendations on a new APMC Act . The important highlights of the recommendations are as follows :
- the state governments have reservations on ‘contract farming’ , but are inclined to take a positive view with respect to ‘partnership farming’ in which the corporate body has an arrangement with a farmers’ co-operative. (PACS, SHG, JLG or farmers Club)
- under no condition can the land of the farmer be held in mortgage.
- funds generated through transactions in agricultural markets should be utilized primarily for establishing infrastructure for marketing for farmers produce
Land and labour related issues
Land
While NABARD, central and state governments have monitored the progress of short term credit, there has been some neglect of long term credit for making the requisite improvements on land. Long term loans for land improvement ,including land levelling, and development of integrated farming system, which have a gestation period of three to five years have to be encouraged. Here the rate of
interest should not exceed 5% and repayment should commence only after land development works have been completed. Likewise, loans should be made available to tenant and marginal farmers to purchase land up to 2.5 hectares to make their holding size viable. This will also lead to capitalization of rural economy, and encourage kinsmen of marginal farmers to take up alternate livelihoods.
Labour
Agriculture workers represent the most vulnerable section of our economy. Thanks to the introduction of MGNREGA, the agriculture wage rates in the country have more or less stabilized. However this will also mean that in the short run, the increase in agriculture production may not be matched by a commensurate increase in employment in the farm sector. There will also be greater thrust on agriculture mechanization. Thus ITIs and polytechnics will have to introduce new courses on running, repair, maintenance and safety aspects of farm machinery. The laws relating to insurance for agriculture workers, including compensation on account of loss of life an limb on account of farm machinery will need to be upgraded at regular intervals.
In conclusion
Proper implementation of the steps mentioned above can address the issues of sustainability and equity in agriculture. It has to be understood that
Agriculture is a State subject, and the 73rd CSTA has listed this as one of the twenty nine subjects that state government may delegate to the three tier Panchayat system. The action agenda therefore has to be driven not only by technology, but also by people oriented processes. Last but not the least, it must be remembered that a 4% growth in agriculture must lead to at least ten percent growth in farmers incomes per annum.