Recently there is article published in Hindu which was Written by Varun Gandhi which is more realistic and fits into the current crisis of Farmers and their solutions, We have tried to put the complete farmers issue and recent loan waivers by various states and its impact on Indian GDP and inflation.
Current Crisis Of Farmers
- Farmers across Nations right from MP to Punjab, Rajasthan, Karnatak are either protesting for the MSP and main demand for loan waivers and some the states have done that also as well.
- Farmer Suicide numbers are alarming more then 3 lac farmer have done suicide for various reasons.
- Farming Community is largest work force employer however it just contribute as little as 16% in the GDP where it employ more around 40 % of work force and 60 % of population depend upon agriculture, this disparity itself is alarming.
- Farmers Main demand are –
- MSP for crops.
- Loan Waivers.
- Exemption from Electricity Bills.
- Higher Prices for Milk
- Implementation of Swaminathan Report – 1.5 times the Input cost.
- Higher pension for farmers.
- Implementation of Proper Insurance Schemes.
Measure Individual Issues – In-depth Analysis
- Debt Levels
- Farmers have huge debts not from just banks however also from private lenders.
- Ratio of Debt:Incomes are –
- More then 10 Hectares have 0.26
- 4-10 ha has 0.34
- small ha as 0.94.
- More then 50 % people have loan from private lenders.
- Average Land Holdings are decreasing due to population increase, it was 2.3ha in 1971 it has decreased to 1.16 in 2011.
- Farmers earning is lesser then 2.400 per hectare for paddy and 2,600 a month per hectare of wheat, labours earn less then 5000 per month.
- 30 million people moved from farming to seeking employment in secondary and tertiary sectors.
- Suicide rates have increased for primarily where limited irrigation facility is available.
- Small farmers do not have modern equipments, pumps, seeds, and post harvest infrastructures.
- Increase in Input Cost
Due to increase in various prices right from fertilizers, pesticides, seeds, high labor charges, transportaion charges etc have increased the input cost of farmers leading to less profit.
- Un-Certainty in Rains and Seasonal Issues, Calamity
There is uncertainty in agriculture sectors due to Monsson Rains, Cold Waves, Heat Waves, Pest Epedimic which leaves farmers sector uncertain.
- MSP Issues
Due to over productions prices of food commodity falls which causes the farmers to sell at lower price then input cost causing loss, or not able to recover the input cost.
- Post- Harvest Infrastructure Unavailability
Small farmers do not have facility to store the perishable or non-perishable goods which force them to sell at lower price.
- Middle Man Take Away the Measure Chunk of Profits
Most of the profit goes to middle man, due to absence of national level market and tight rules of APMCs.
- Non- Availability of Good Seeds and Fertilizers
Most of the time farmers are forced to sow the same old seed which further decrease the production, proper seeds are not available and fertilizer costs are too hight which decrease the production.
- There are various other issues faced by farmers like
- Non-Availability of short term credit
- higher Wage or labor cost
- less land holdings.
- lack of Soil tests
- Non-Awareness about organic farming
- Working as treditional farming techniques.
- Over Populated with people then required etc.
Analysis of Loan Waiver Schemes
- Recently various states like Punjab, UP, Karnataka, Maharastra have announced the loan waivers for the farmers however it has been analysed that Loan waivers have been less effective rather then just political steps.
- Recent loan waivers have caused 0.5% of GDP however which is short term measure.
- Most of the people take loan from non-banking individual which can not get the benefit of loan waiver.
- People also use it a mean for non-payment of loan and it is in-justice to the regular paying farmers.
- This may increase the inflation for short term as warned by RBI Governor recently.
Need of Other Measure Reforms
- Most important need of farmers are irrigation facilities which will help the farmer to diversify the crops.
- Greater subsidies for buying agriculture machines, pesticides, fertlizers
- Pay under MNREG to tilling own lands
- National conversation, collective effort along with positive will is needed to address the farmers distress and help rural populations.