Saturday 18 April 2015

Agriculture in crisis(Part-1)

The Narendra Modi government is pushing ahead with policies that disadvantage farmers at a time when Indian agriculture is already in deep crisis. By JAYATI GHOSH

ONCE AGAIN, the spectre of agrarian distress, which is unfortunately never far from the surface in much of India, is rearing its ugly head. Across the country, farmers, especially small cultivators, are facing severe problems with already dire outcomes. There has been a spike in farmers’ suicides in several States. Among several other signs of acute hardship are reports that once again more people are migrating from the countryside in search of work to cope with collapsing livelihoods at home. This is occurring even in places where such outcomes have not been so common in the past few years and at a time of the year (just before the rabi harvest) when they are less expected.

In Maharashtra, it is estimated that there has been a 40 per cent increase in farmers’ suicides in the past seven months compared with the corresponding previous seven-month period. In West Bengal, the State government appears to be in denial mode even though the number of farmers who have committed suicide this year in Bardhaman district alone is 106. Reports from Rajasthan, Punjab and elsewhere also point to more suicides by those from the farming community.

Of course, it is shocking that it takes something as drastic and final as a suicide to generate public acknowledgement of severe economic distress. It is even more shocking that the tendency among officialdom is to downplay the increase by changing the classification of some of these deaths into suicides by “non-farmers” (if they do not have land titles, for instance, or are women) or attributing them to “personal reasons” rather than severe economic adversity.

Indeed, the Central government recently told the Supreme Court that the number of farmers who committed suicide had decreased since 2009 and that factors other than agrarian and financial distress also led the farmers to take their own lives. Such arguments suggest a cynically callous attitude to farmers and their families, and they are also an attempt to deny the basic problems that farmers face and the extreme difficulties of their situation whether or not they take the drastic step of killing themselves. Agriculturalists in different parts of India are feeling the pressure for different specific reasons. In much of northern and western India, unseasonal rain and hailstorms have battered standing crops of pulses and vegetables, and lower harvests are the primary source of concern here. It is estimated that nearly one-third of the acreage under the rabicrop has been affected. In West Bengal, potato farmers are struggling because of too much output; post-harvest potato prices have collapsed and the appalling but continued lack of adequate storage facilities means that farmers are forced to simply let their crops go to waste. In Maharashtra, farmers face a double whammy: cotton and sugar prices are down even as bad weather has meant lower output. In southern India, agriculturalists are suffering the impact of the global decline in prices of cash crops, accentuated by the adverse effects of the various trade agreements signed by the Central government.

Yet, despite the variations, there are some underlying similarities. In all parts of rural India, farmers are facing what has been called a “scissors crisis”, which is driven by the rising cost of inputs without a commensurate increase in output price. This puts them on an uncertain trajectory where their reliance on (typically very expensive) debt to finance their operations tends to grow over time and any unexpected movement can have extreme consequences. An adverse weather change, for example, can lead to a drastic decline in economic capacities such as the ability to recoup input costs, leave alone the ability to repay loans. So, the greater underlying fragility of the process of cultivation makes farmers even more vulnerable to what may not otherwise be such a major change in the weather pattern. The inadequacy of institutional mechanisms to deal with the risks associated with farming (such as crop insurance and functioning price stabilisation schemes) means that cultivators are forced to deal with these almost entirely on their own.


The rising cost of inputs reflects more than just input price changes, and indeed, the price of one of the most important elements of cost of cultivation, that of fuel, has actually been low or stable in the recent past because of low world oil prices (even though these price declines have not been transmitted fully to Indian consumers). Instead, rising input costs are part of a process of the declining technological viability of cultivation. Soil quality has worsened because of excessive use of chemicals over long periods as well as erosion and waterlogging in some areas. Irrigation is both scarce and ever more expensive as declining water tables make the use of groundwater the privilege of those who are rich enough to keep digging deeper and deeper to extract it. The emergence of new pests resistant to chemical pesticides and the uneven performance of genetically modified seeds that are supposed to reduce reliance on chemicals have complicated the possibilities of pest control and thereby affected crops. And so on.
Continued in Part-2... (Published in Frontline.in)

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