Women farmers play a crucial role in South Asia’s agricultural sector and contribute significantly, despite facing numerous challenges. The intersection of climate change, gender, and health can have disproportionate
2 "The budget will go a long way in solving the problems of the small farmer,' said Pawan Kumar Bansal, Minister of State for Finance, while speaking at a seminar, "Agriculture
HERE'S the answer to the most intriguing question about this year's budget
It will provide only short-term relief THERE arefour crore small and marginal farmers who are unable to repay their crop loans to the banks. The Rs 60,000-crore budgetary allocation for waiving their loans will now enable a farmer to go back to the same bank, apply for another loan and await either of these two outcomes: a good crop or another loan waiver. While the gesture provides farmers relief in the short term, it would be harmful for the economy, especially the farm economy, in the long run. If we take the risk versus reward incentive out of an economic activity such as agribusiness, the enterprise quotient diminishes and hinders both growth and innovation.These key attributes, along with structural reforms and investment in agri-infrastructure, are needed to raise agricultural productivity and maintain the growth trajectory of the economy. The question we need to ask ourselves is why these farmers have not been able to repay their crop loans. Can Rs 15,000-per-farmer reward help them produce a better crop in the next season? The answer sadly is No. Small farmers face two main challenges: meeting their input needs (seeds, pesticides) and dealing with the weather risks to their crops. Issuance of input coupons for purchase of quality inputs for the next season would have been more beneficial. Bad weather plays havoc with agriculture. Dealing with weather risk calls for appropriate risk management tools such as weather insurance. This requires a network of weather stations at the block level for timely collation of data, a basic requirement for weather insurance products. Establishing a network of weather stations would have required only a fraction of the Rs 60,000 crore outlay. The budget will definitely encourage the creation of rural enterprises such as nurseries and cold chain establishment. The one-time budgetary assistance of Rs 75 crore for setting up mobile soil testing facilities is also a good step. However, the provision of Rs 60,000 crore for loan waiver which can at best provide short-term relief to farmers has robbed them of possible agri-infrastructure projects such as roads, marketing and storage facilities, and irrigation which could have yielded better returns on a sustainable basis. (*Country Head, Food & Agribusiness Strategic Advisory & Research) RAKESH TIKAIT Spokesman, Bhartiya Kissan Union It will not solve the deepening agri crisis THE Union budget 2008-09 is prima facie a pro-farmer budget, with the primary emphasis on writing off the loans of small and marginal farmers. It is a good step to provide instant relief to farmers who are heavily indebted, although it covers only 40% of total farmers. However, the debt relief will not solve the deepening agrarian distress. Nevertheless, we see the announcement of debt waiver as a victory of farmers' union, activists and pro-farmer media. It was a great battle and we are grateful that the finance minister took this step despite corporate pressure. We believe that this measure alone is not enough to address the farmers' problems. It is well known that the basic problem faced by farmers is their inability to get fair price for their produce. The policy makers have said nothing on this count. Nothing has also been said about ensuring better farm gate price for agriculture commodities or making available a price stabilisation fund to help farmers increase their income. The price offered for the commodities produced by them must not only fully cover their cost of production but also ensure livelihood security. Subsidy is another area of concern. Traders and producers are currently getting all the benefits while farmers have to suffer due to scarcity of fertiliser. The budget has also not made any announcement to strengthen the extension services of the ministry of agriculture to make it more relevant for the farmers. As a result, farmers are forced to depend on agents of pesticide and seed companies for technical advice. It seems that the government has made up its mind to hand over this system to the corporate sector. In this context, we are closely watching the Indo-US knowledge agreement and the multinational companies in seed business. In conclusion, although the budget is pro-farmer, the actual need of the Indian farmer is not just the removal of debt and interest. Many other important issues need to be addressed. These include access to market, fair price for produce, timely availability of fertilisers and seeds, direct subsidy and the public sector investment in agriculture business. We hope the government will consider all this in future. And the main need is to keep corporates far from farming business. K CHAKRAVARTHY Country Head* YES BANK
KOLKATA: The finance minister's farm loan waiver will help 1.10 lakh small tea growers become more competitive. Small growers contribute 25% to the national tea production, which stood at 940 million kg in 2007. The Budget has also abolished cash transaction tax, which was a burden to the tea industry in particular. "Nearly 80% tea estate workers do not have bank accounts and have to be paid in cash. For the tea industry, which is yet to come out of a crisis, this tax was an added burden,' Ambootia group chairman Sanjay Bansal said. There are 3 million direct workers in the country's tea estates. The estates also provide indirect employment to some 1.5 million people. The wage bill of the industry is around Rs 80 crore. The payment to workers are made on weekly, fortnightly or monthly basis.
UPA's mega poll sop for farmers has got bigger. The loan waiver for "small and marginal farmers' will now add up to a staggering Rs 65,000 crore even as the government is preparing to enlist banks as primary agents in identifying the scheme's four crore beneficiaries. The figure for the one-time settlement, which will benefit farmers who are willing to make a payment of loans to get a rebate, is yet to be finalized and discussions at the top echelons of government have seen the total write-off range up to Rs 100,000 crore. As of now, the figure has been revised to Rs 65,000 crore. The other key issue of identifying the beneficiaries, crucial to the waiver's success, will be largely entrusted to the banks. Banks to identify beneficiaries New Delhi: A large part of identifying the beneficiaries, crucial for the success of the Rs 60,000-crore loan waiver to farmers, will be entrusted to banks. It is felt that this would be the best option for the government as banks are expected to have records of persons they have given loans to, and in the case of farmers, would also have the size of their holdings. Having set 2 hectares or 5 acres as the size of holdings for the waiver's beneficiaries, the government has the mammoth task of getting accurate lists ready so as to facilitate a complete rollout by the June 30 deadline. Commercial and rural banks and cooperatives would have an incentive to draw up lists as they would be paid money for loans which had suffered defaults. Official sources pointed out that most of the loans being targeted were anyway "basket cases' for the banks. With little hope of recovery, the banks should be more than willing to divert resources to identify farmers who can benefit from UPA's largesse. In this way, the government would not have to depend on land and revenue records, which were not always well maintained and could be open to manipulation as well. Though payment to the banks will be staggered, in the first year, the banks will be given Rs 40,000 crore. Agriculture minister Sharad Pawar told the media that in the next three years, the figure would be Rs 8,800 crore for 2008-09 and 2009-10 while the final amount to be paid in 2010-11 was expected to be Rs 2,400 crore. While the effectiveness of the loan waiver, and its potential political benefit, is being discussed, the Congress leadership is in an upbeat mood. Scenes of farmers celebrating and dancing have helped waiver enthusiasts argue that the Budget announcement was a popular hit. The massive giveaway, along with the pro-middle class decision to raise incometax exemption limits, could deliver a formidable advantage to the ruling combine. Those who feel somewhat differently point out that most of the really distressed farmers were engaged in dry-land farming. In normal circumstances, they were not eligible for high loan amounts and in contrast, farmers in irrigated areas, with holdings of similar size, would get larger loans. Dry-land farmers had to depend on private money lenders and these debts were outside the waiver. On the other hand, farmers in irrigated areas would now benefit from the waiver while also being in a position to raise regular loans from banks.
A large part of identifying the beneficiaries, crucial for the success of the Rs 60,000-crore loan waiver to farmers, will be entrusted to banks. It is felt that this would be the best option for the government as banks are expected to have records of persons they have given loans to, and in the case of farmers, would also have the size of their holdings. Having set 2 hectares or 5 acres as the size of holdings for the waiver's beneficiaries, the government has the mammoth task of getting accurate lists ready so as to facilitate a complete rollout by the June 30 deadline. Commercial and rural banks and cooperatives would have an incentive to draw up lists as they would be paid money for loans which had suffered defaults. Official sources pointed out that most of the loans being targeted were anyway "basket cases' for the banks. With little hope of recovery, the banks should be more than willing to divert resources to identify farmers who can benefit from UPA's largesse. In this way, the government would not have to depend on land and revenue records, which were not always well maintained and could be open to manipulation as well. Though payment to the banks will be staggered, in the first year, the banks will be given Rs 40,000 crore. Agriculture minister Sharad Pawar told the media that in the next three years, the figure would be Rs 8,800 crore for 2008-09 and 2009-10 while the final amount to be paid in 2010-11 was expected to be Rs 2,400 crore. While the effectiveness of the loan waiver, and its potential political benefit, is being discussed, the Congress leadership is in an upbeat mood. Scenes of farmers celebrating and dancing have helped waiver enthusiasts argue that the Budget announcement was a popular hit. The massive giveaway, along with the pro-middle class decision to raise incometax exemption limits, could deliver a formidable advantage to the ruling combine. Those who feel somewhat differently point out that most of the really distressed farmers were engaged in dry-land farming. In normal circumstances, they were not eligible for high loan amounts and in contrast, farmers in irrigated areas, with holdings of similar size, would get larger loans. Dry-land farmers had to depend on private money lenders and these debts were outside the waiver. On the other hand, farmers in irrigated areas would now benefit from the waiver while also being in a position to raise regular loans from banks.
Bathinda: Dubbing the loan waiver announced by the Union government for Punjab farmers as a classic example of "administering medicine for cold to a person suffering from cancer', Punjab Chief Minister Parkash Singh Badal today said Punjab farmers were not meted out fair treatment by the Centre while announcing the relief. The CM said focus should have been on reducing input costs like diesel prices and fertiliser costs for ushering in sustainability in the agricultural sector. Badal was in Malooka village near here today to participate in the bhog ceremony of Chatin Kaur, mother of Akali leader Sikander Singh Malooka. He dwelt upon the need for setting up an all-party expert committee comprising agri-experts to bail out state farmers from the crisis. Badal said only 29 per cent farmers of Punjab
MELBURNIANS can expect water restrictions to remain for several years until massive infrastructure projects are completed, including the desalination plant due to begin operating in 2011. The city's water supply is in better shape than at this time last year but a drier autumn looms. Water Minister Tim Holding said yesterday some restrictions would continue until major projects were completed. Water Services Association of Australia executive director Ross Young said Melbourne ended February with its catchments 35.5% full, up from 34.2% at this time last year. He attributed the increase to a fall in water consumption, down 9% on the previous year, and more summer rainfall, 10% above average. However, Mr Young said dry soil throughout the state meant higher rainfall was not delivering the boost to reservoirs that might be expected. The streams that fill Victoria's reservoirs were flowing at only 58% of the long-term average flow. Water storage levels in Ballarat were at just 9.5%. Meanwhile, the Murray-Darling Basin Commission yesterday warned that flooding rains in Queensland and above-average summer rainfall in the upper Murray River would bring little or no relief for Victorian irrigators. Total inflows into the Murray system are still only a quarter of the long-term average. Victorian irrigators will receive only 42% of their entitlements this financial year, with worse likely for next year. With CHRIS HAMMER
At this time of year, Jasabi village in Lhuentse is calm and quiet. There is not much activity as farmers serenely prepare for the spring season which heralds yet another busy farming cycle. But the farmers from about 15 households in this village dread summer. They fear summer not because of the drudgery of farm life, but for a common problem they share every summer - the Jasabi bridge. The suspension bridge over the Kurichhu river in Kurtoe gewog, which is a lifeline for the village, is about 23 years old and about to fall apart, according to farmers. Over the years, the river has eaten into the foundation of the bridge, which was built in 1985. "I think the bridge will not survive the swelling river, forget a flood,' said a worried farmer. There is enough reason for concerns. Jasabi is a two- to three-hour walk from the nearest farm road in Dungkhar. It is the only bridge that connects the village to the dzongkhag headquarters, the hospital, and the gup's office. "Even to sell a few village products, we have to cross that bridge,' said another farmer. "If the bridge breaks down, our children will miss one academic session because the school is on the other side of the river.' "We'll be isolated,' said the village tshogpa, Pema Wangchuk. According to him, there is no other means to get to Lhuentse if the bridge is washed away. "During winter, we can wade through but, with the Kurichhu swelling in summer, there's no other way to get across.' However, Dzongkhag officials are aware of the concerns of the Jasabi farmers. According to the dzongkhag engineer, Tshering Chophel, the bridge would be renovated in the first year of the 10th Plan. "The bridge is risky and we've already made plans to renovate it,' said the engineer. "We'll provide protection to the foundation of the bridge, so there's no need for a new bridge,' he said. "The wooden deck will also be repaired.' The Kurtoe gup added that the importance of the bridge was long realized and included in the Plan. Contributed by Tashi Yetsho
Nath: Where Will Funds Come From? The mega loan waiver announced by the Manmohan Singh government is running into some in-house scepticism with doubts about funding for the give-away being aired in the Cabinet. On Monday, a meeting of the Cabinet saw commerce minister Kamal Nath asking whether the government had made provisions for the Rs 60,000 crore scheme it has announced in the Budget. He also seemed to argue that it would have been better if the Cabinet had been taken into confidence. Sources said that Prime Minister Manmohan Singh intervened to commend finance minister P Chidambaram and the loan waiver. Foreign minister Pranab Mukherjee also said that the finance ministry has chalked out the broad direction and details will soon be worked out. This reflected doubts put forward that the waiver unfairly lumps farmers tilling irrigated lands with those in dry-land conditions and that the two hectare cut-off for beneficiaries cannot apply across the country. Wondering whether the waiver would benefit distressed farmers, minister of state for new and renewable energy Vilas Muttemwar told TOI, "The problem lies in many farmers in areas like Vidarbha owning up to 15 acres of land, but being very poorly off. It is not just the small farmer, even those with larger holdings, who actually can access credit, are suffering.' Muttemwar said he would speak to the Prime Minister and Congress chief Sonia Gandhi and ask for the eligibility for the Rs 60,000 crore waiver announced by the government to be altered in a state or regionwise manner. He also said that even smaller farmers might not be able to use the waiver as they were largely indebted to private money lenders. Muttemwar disputed agriculture minister and NCP boss Sharad Pawar's call to farmers to stop paying money lenders. "This is easier said than done. These loan sharks get farmers to sign agreement to sale documents. Even those sales are being closely scrutinised, it is not easy for farmers to simply throw off the yoke of money lenders,' he said. The minister's views could be some cause for worry as he represents Nagpur, the political centre of the Vidarbha region which has been reeling from suicides by farmers. The criticism that farmers who need help might be outside the waiver also dovetails with the argument that UPA's largesse will help well-off agriculturalists in areas like western Maharashtra. Well-known agro-economist M S Swaminathan agreed that it was difficult to compare farmers from green revolution states with those in impoverished dust bowls. "Comparing farmers owning two hectares in Punjab with those with holdings of similar size in Rajasthan or Vidarbha is unfair. The size of holdings in distressed areas should be much bigger,' he said. Swaminathan said farmers in irrigated areas who used advanced methods had access to credit much in excess to what farmers in distressed areas were able to garner. Budget can't be challenged in court: SC Even before the applause for a Budget
