Sunday, March 03, 2013
The dire crisis of dairy farmers
India is the largest producer and consumer of the dairy milk in this world producing around 130 million tonnes and the total world production estimates 730 million tones. FAO estimated 85% of all milk worldwide was produced from cows and the rest is from other species ( 11% Buffalo ,2% got and 2% others.). USA is the second largest producer of milk and the first largest producer of cow's milk. Israel dairy farms are very productive with an yield of 12,546 kgs of milk per cow per year.
Indian Dairy farmers are in crisis with increased cost of production and non remunerative prices. Return on investment for dairy farmers are very less due to increased costs of feed and medical expenses for animals. Earlier, the cattle used to depend on grazing, natural resources and crop residue for fodder which are decreasing now. The milk farmers are forcibly depend on the packaged cattle feed to increase the milk production, eventually the cost of production has increased. Feed cost has been increasing up to 30- 50 percent from past four consecutive years, but the milk procurement prices have not increased comparatively. Health care also big burden, vaccination and De-warming costs have been increased.
The productivity of the cattle is based on the caring and managing, farmers are slowly decreasing their non performance animals and switching over to efficient breeds like Jersey and Holstein Friesian. Investment on these exotic cattle is heavy burden for the farmers and these breeds need more feed, water and caring since they are not native animals. Farmers are struggling to get loans for milking animals and also the bank charges are very high up to 12% interest rate and insurance cost is additional. With the increased cost of production including expensive breeds the dairy farming is not remunerative, so the farmers are slowly decreasing their herd size and some of the farmers have giving up the dairy farming.
The procurement prices have not increased comparatively with milk market selling prices, in fact the procurement prices have reduced in Oct and Nov months of 2012. The Andhra Pradesh farmers have faced a bitter experience called "MILK HOLIDAY" due to the false market analysis by milk marketing companies. They have imported low-priced Skim milk powder by estimating that the milk production is going to be less for this year but there is a consistent growth in milk production. Most of the milk marketing companies including Co-operative sectors have reduced the procurement prices and some of them have stopped to collect the milk from farmers. Animal fodder is the biggest problem for the farmers, decrease in grazing land, natural resources and drought situations leads tough time for animal fodder. Last year, the dry forage was sold at Rs.2.00 per kg in some arid districts of Andhra Pradesh. The loan facilities for cattle are too tough for small farmers, a rural poor woman who wants to buy a buffalo she gets the loan with high interest rate up to 14% with a great struggle, where as in the cities the car loan get approved with 7-8 percent interest rate without any hurdles.
Our Indian Dairy Industry is in chaotic situation, India is the largest milk producer in the world, ironically...
whereas chemical mixed adulterated milk is widely available in the market.
whereas milk consumption is very less and 68.72 Kg/capita/year.
Whereas The Food and safety standards authority of India ( FSSAI) has announced the 68% of the bulk milk supplies have found to be unsafe and substandard quality.
Indian government has opened the gates to FDI's and excited to enter in free trade agreements, already France's DANONE is aggressively marketing it's dairy products in Indian market associated with Dynamix Dairy- Baramathi ( Maharashtra), New Zealand's FONTERRA and DANONE are interested to acquire major stack in Hyderabad based Tirumala Dairy products. As we know that all largest milk producing countries are keen to enter in Indian market, most of the developed nations' dairy farming is massively funded and heavily subsidized by the governments with various income support plans like i.e. Milk income loss contract payment, Market loss assistance, Dairy Income loss assistance programs, dairy Indemnity, milk marketing fees and so on. Such huge subsidies keep the International milk prices down which are going to affect very badly on our Indian dairy industry. we should oppose as strong as possible to protect our Indian dairy Industry against dumping.
In order to protect our dairy farmers, the milk procurement prices should be fixed based on the cost of production as the practice where implemented in crop farming. The banks should liberalize the policies in cattle loans for Individual farmers to buy one or two animals and Government should arrange interest free loans to the dairy farmers. Government should invest in co-operative dairies and allot matching grants of subsidies for remunerative milk procurement prices. The government need to take some steps on milk promotion programs by offering small quantity of milk to school going children, lactating women and pregnant women to boost milk consumption. The Indian milk marketing companies including co-operatives all together should run a united advertising campaign which shall create an importance of milk in our daily life.. like www.gotmilk.com by California Milk processor Board.
We shall have to try all possible options to rescue our milk farmers, if not they will give up dairy farming, therefore India may encounter serious milk shortage which leads to malnutrition.
Saturday, January 19, 2013
Plate full food ends up in Landfill
A survey by University of Agricultural Sciences (UAS), Bangalore says that annually, Bangalore alone wastes 943 tonnes of quality food during weddings and the total food wastage in the city is estimated at Rs 339 crores. As per data from the solid waste management department of the Pune Municipal Corporation (PMC), around 140 tonnes of leftover food is collected daily from the hotels and restaurants in the city which nearly 50 percent is good to consume. India is facing the loss of Rs.50,000 crores worth of food items. United states, the food waste worth is $180 billion every year, Canada's food waste is approximately 40 percent and worth of $27 billion, around 5.3 million tonnes of food waste goes to trash in UK that's worth is £12 billion, the food wasted in Italy can feed the entire population of Ethiopia. The FAO estimates that more than 30% of the global food production goes to garbage that counts 1.3 billion tonnes which can cater to 3 billion people.
Food waste can be occurred in three levels 1. Farm level ,2. Distribution level, 3. End user level.
The major food waste happens in the farm level. Before harvesting, the crop losses could be with pest, birds, rodents and wild animals and the natural disasters also can cause for crop damages. Losses may be high in harvesting process since the machine harvesters are unable to detect the difference between ripen and half grown crops and also it collect some part of the crop and the rest will be left in the field itself. Some crops like horticulture produces must be harvested by hand picking only, then some root crops may damaged by careless hand harvesting and acute labor shortage lead to the yield loss as crops are not harvested and decayed in the fields.
At the distribution level, supply chain & value chain losses are very frequent due to lack of storage facilities, no proper transportation and unable to access the markets on policy issues. A nation-wide study on quantitative assessment of harvest and post harvest losses for 46 agricultural produces in 106 randomly selected districts was conducted by CIPHET in 2010 revealed that wastage in fruits and vegetables is between 5.8 - 18.0 % for different crops. Wastage are lower for other items as compared to fruits & vegetable: for crop (3.9 -6.0%), cereals (4.3-6.1%), pulses (4.3-6.1% ), oilseeds (6.0%), Meat (2.3%), fish (2.9% ) and poultry(3.7%). Although the food stored in proper facilities, some portion get waste by the pests and microorganisms, supermarkets always reject the produces for slight cosmetic imperfection though they met the edible standards. Retail stores, farmers markets and whole sellers are losing huge amounts in unsold fruits and vegetables, we can't ignore the export losses in food products since they don't meet the agriculture, safety and health standards. Altogether, a significant quantity of food produced goes waste during the processes of pre & post harvesting, supply & value chain.
Food waste can be seen everywhere in our daily life, in kitchen at home, restaurants, in big fat weddings, gala parties, in work place canteens and so on. Some social behaviors have lead to food waste like cooking surplus food, ordering excess food in the restaurants, load-up the plates with more than sufficient items in buffet. Once in a while when we check our refrigerator, we may find some leftovers and uneaten food that ends up in the trash can. Super markets promotion sales also push the consumers to buy more than enough food and which is frequently throw away.
Waste happens in throughout the food system in all stages like farming, transportation, processing, distribution, supermarkets, restaurants, food service providers and households which accounts around 40% of the food we produce.
Recycling and disposal expenses are additional burden to the food waste, all uneaten food ends up in our landfills which generates green house gas emissions and it is estimated that 14% of the world’s CO2 emissions are caused by food waste itself. This huge waste of food puts heavy pressure on agriculture as it must provide for growing population that is wasting up to 2 billion tonnes of food a year. Agriculture consumes 70% of water reserves in the process of food production, 3000 liters of water required for our daily food needs, management of water is the key for our food production and water is going to be more expensive in future. One more important issue is land usage, if we lose the food with wasteful habits the demand will be increased for extensive usage of land for farming and livestock. The food waste has ripple effects on other industries like energy, fertilizers and pesticides which are produced by coal, chemicals, fuel, natural gas and so on, all these incremental cost is driven by uneaten food.
Wasting a food is a cultural habit, by not wasting food we can express ourselves as well mannered and responsible. The most important thing is... to buy only whatever our actual need and use it completely. The super markets should liberalize their purchase practices i.e. rejecting the food stocks for just small flaws in physical characteristics. Government should set a national goal to reduce the waste and sensitize the public against the waste of food by creating awareness and should encourage the NGOs who are working against food waste. Modern engineering and technologies should be implemented in Pre/Post harvesting stages and fully integrated infrastructure should be created for transport, storage and processing. Elimination of food waste will provide a lot more food for growing population, it reduces the carbon foot print and mitigates the heavy load on agriculture.
Saturday, December 22, 2012
Kisan Divas
Chaudhary Charan Singh's birth
anniversary on December 23rd every year is observed as Farmer’s Day ( Kisan
Divas). The late Charan Singh is also remembered for the one and only budget he
presented in 1979. That Budget had everything a farmer could dream of in his
favor. He also came out with various initiatives in favor of farmers, his
passionate appeal and magnetic persona united all the farmers against the
moneylenders and landlords. He was also a very effective writer and penned his
thoughts on farmers and their problems and solutions. Charan Singh passed away
on 29 May 1987.
Saturday, December 08, 2012
Re−shaping the small and marginal farmers
Three quarters of the world's farmers cultivate small plots of land, India is the land of marginal and small farmers, the average size of farm land holding is 1.16 hectares ( 2.86 acres). 85% of the Indian framers are cultivating the 70% of farm lands which are below two hectares each, more than 60% of the farm produces come from the small farms only. The productivity of the small farmers is the solution for growing population food needs, the future of the Indian sustainable agriculture is depends on the performance of these small and marginal farmers only. Most of small farmers cultivate the farm land with the support of their family members and local labor which the quality of the work is higher. They spend more time on mulching, trellising, weeding, removing the rock stones, soil conservation and building the irrigation systems which are a part of good agriculture practices . They grow multiple crops and sow as soon as they harvest, small farms have been the most efficient for sustainable and bio-diversified way of agriculture.
India's land holdings average size has been decreasing i.e. 1.16 hectares ( as per 2011 data) and at the same time the number of land holdings are increased to 138 million which are caused by the population growth and family subdivisions. Some researchers argue that small farm land holdings' output is always low and their operating expenses are high. I feel, the farm size is not a constraint for the productivity, small farms are sustainable and the efficiency also more or equal to large farms. Numerous studies have confirmed that there is an inverse connection between the size of forms and yield per hectare, the smaller they are the yield is greater, the contribution of output is higher for marginal and small farmers and they grow high value crops like fruits and vegetables. But small and marginal farmers have been facing lot of problems like credit and Indebtedness, land titles and tenancy issues, low level education and skills, globalization challenges and climate changes.
The Western model of agriculture is being forcibly advocated by some agricultural policy analysts and economists which is really applicable for only large land holdings. As per Indian agri profile, we can't shift our small farms to larger farms that will cause a decline in food production and also the unemployment of displaced workers that's going to be a big problem. It is very clear that the Western model of agriculture can't support our Indian agriculture like heavy mechanized, less labor-oriented, chemical-based, high-input agriculture. Actually we should adopt the Eastern model of agriculture which have been implemented in Taiwan, Japan, Thailand, South Korea, Indonesia and China. The far east agriculture practices like experimenting with high yield verities, controlled use of fertilizers, drip irrigation, effective use of manpower, multiple cropping and custom made small farm equipments are exactly appropriate to Indian farm lands. Moreover, Indian small scale family farmers can't afford to heavy farm equipment, extraneous inputs and hired workers, so the Eastern style of agriculture is the way forward for India.
While small shops, hawkers, farmers markets are being wiped out and replaced with super markets and hyper malls, the small farmers loss their customers. The large super markets always need the consistent supply, competitive price, high quality produces with safety standards, this will be a big challenge for the small farmers since most of the farmers deliver their produces to local vendors and open markets. Supplying to large chain supermarkets is a great opportunity to the small farmers, to confront the same, the government should enact the collective farming by combine all small farm land holdings in to a farmers' cooperative for mutual benefit. Under this model, the farmer will be an independent share holder and collectively utilizing the supply chain/value chain with their own operated marketing societies or private processors.(Just like dairy co-operatives).
This is the time to reshape our Small scale farm production and marketing systems since we are allowing the FDIs in retail trade, to integrate with big chain retails markets the small and marginal farmers should be strengthened with modern technologies and policy reforms. We wish the small and marginal farmers avail the market opportunities for better prospects.
Sunday, November 04, 2012
I am against to hunger and poverty, not to the technology
Achieving Food and Nutritional security is not easy task, we need to try every option either genetically Modified (GM) or Conventional. The food grains which are cultivated today are not absolutely wholly natural, most of them are altered and hybridized by selective breeding or chemicals or Viruses. We need to depend on modern technologies to get bumper yields, drought tolerant and disease tolerant crops for growing food needs. The government and the progressive thinkers should focus on public understanding on Agriculture technology research.
I am not against to the technology ...but especially in food crops part we have some concerns about safety of human health and environment. We already have so many conventional verities of food crops for centuries which contain rich health & nutrition values. The agritech researchers are mentioning that the GM food contains same nutritional values as non GM, then why we need GM Food crop?! why can’t our researchers develop new verities by hybridization and natural selection instead of genetically engineering? Food security is not only providing food for all but also the bio - safety must be ensured, the bio technology has to develop the food crops without compromising safety and regulatory aspects.
The BT Cotton was developed and introduced in India in 2002 and still the farmers have mixed opinions on the crop. Monsanto claims that the BT cotton plays a beneficial role in increase of production and reduction of the costs of cultivation. But the farmers are complaining that the cost of cultivation has been increased comparatively with the traditional verities and the yield per acre did not increase. We have reports on livestock dying allegedly on consuming Bt cotton plants and Farm workers are suffering with allergies including rashes, itches, and irritations while working in GM crop fields. The mainstream scientific community argues that all safety tests have been done but there is no systematic research to address this serious problem.
In India, there are a lot of apprehensions associated with GM foods chiefly relating to the safety aspects both for the environment and for human health. There are fears that novel genes and genetic constructs could escape into the environment and create monster plants like weeds that cannot be destroyed or new, recombinant pathogens like bacteria and virus for which there are no cures. That is the reason there is a strong appose on BT Brinjal and the protesters are claiming that the BT brinjal is a threat to plant biodiversity, flaws in the data on the gene inserted into the brinjal, no long-term toxicity and cancer-safety tests were done which leads to kidney and liver damage. The technology needs improvement and the safety aspect will have to be tested far more rigorously before it can be declared that GM crops are indeed a safe source of food.
The GM companies should focus their R&Ds on the crops like drought tolerance, salinity tolerance and alkaline tolerance. Farmers will need to grow crops in locations previously unsuited for plant cultivation since most of the cultivatable lands have been converted to non agriculture purposes. Creating plants that can withstand long periods of drought , high salt/alkaline content in soil will help people to grow crops in formerly inhospitable lands. Ethanol based Transgenic Sugarcane, maize and sugar beet crops have to be developed for support Bio fuels instead of fossil fuels. Genetically Engineered Tobacco plants are required for medical use. Modified Subabul, Eucalyptus and Bamboo plants are required more tonnage for paper production. We expect the crop science or agriculture research outputs should be safe for human health and environment. The safety tests and systematic research should be conducted under regulatory measures before launching any crop which is genetically engineered. I am against to hunger and poverty, not to the technology.
Sunday, October 07, 2012
Saturday, September 22, 2012
FCTC - The imposed treaty
Recently the Tobacco Institute of India has given awards to the tobacco farmers on their achievements. I met some of the farmers who attended the awards function , in casual chat one of the prospective farmer mentioned that he doesn't know what FCTC (Framework Convention on Tobacco Control) means until he attend the award ceremony. Most of the tobacco growers don't know about the FCTC which was ratified by Indian government in 5th February ,2004. The world Health Organization ( WHO) adopted the FCTC in May 2003 to reduce the tobacco consumption to protect the global public health and this is one of the most quickly ratified treaties in United Nations history. FCTC formulated the policies for the member countries to adopt the better strategies for tobacco control, those might be mandatory and some of them are provisional.
India is so active in FCTC treaty and was the one among the first signatory countries. Even prior to FCTC, India has been working on tobacco control by several legislations like COTPA (Cigarettes and Other Tobacco Products Act) i.e. ban on smoking in public places, ban on underage sales, prohibiting the tobacco sales within 100 yards of schools and hospitals and restrictions on tobacco advertisements & sponsorships. Proactively our Union Health Ministry proposed that all new films have to flash a static anti-tobacco message during a smoking scene. The government initiatives are not only with consumption part but also in production and distribution, government is enforcing the heavy taxes to control the tobacco consumption. The tax on tobacco products in India is are complex and vary for tobacco products, cigarettes taxes are calculated by the length and the process of manufacturing which accounts approximately 38% on retails price and the Bidis (tobacco rolled in a leaf) are taxed very low averaging 9% on retail price.
India is the third largest producer and second largest group of smokers, over 120 millions of Indians smoke which counts 10% of the total world's tobacco smokers and over 250 million people across the country use tobacco products like gutka, cigarettes , bidis and other kinds. Tobacco will be responsible for 13% of all deaths in India, it counts around 900,000 deaths per year. Worldwide, every 1 in 10 adult deaths are caused by tobacco and it kills more than 5 million people per year. The World Health Organization warned that if the same consumption patterns continue, more than 8 million people will die per year by 2030. Everybody has the same questions, why farmers are growing tobacco even that is harm for human health and why governments are allowing tobacco cultivation even lot of health organizations and social groups are advocating a ban on tobacco. Tobacco cultivation is a part of Indian agriculture system, it is legally cultivated agriculture crop and globally trading commodity. Tobacco is the best cash crop among all cash crops… in terms of high value returns and suitable to most environments, on top that it’s a labor intensive crop which helps to improve the rural employment .Indian Tobacco Industry is providing livelihood to more than 25 million people in the country, the tobacco contribution to India’s GNP is about 10%.
Consuming tobacco is a fatal addiction and social problem, it keeps the health in hazard. The problem should be dealt with public awareness, anti smoking campaigns by government and other advocacy groups have not much influenced the tobacco farmers neither threaten to tobacco cultivation nor encourage them to leave the crop. But the FCTC regulations are simple forcing ban farmers from cultivating tobacco. Indian government never consulted and asked the tobacco farmers' opinion before ratifying the treaty in 2004, it's an autocratic decision. The Indian tobacco farmers were not against to our national tobacco control law like COTPA or any legislation which prohibits tobacco consumption, they do concern about public health but imposing FCTC regulations on tobacco farmers without consulting them is unacceptable, FCTC planned to force all the governments to keep the tobacco farming industry in jeopardy. Indian farmers are opposing several articles of the FCTC like 9 and 10 which are dealt with regulation, testing, measuring and disclosure of contents.
FCTC proposals will affect our tobacco farmers and industry, more than 30 million of Indians livelihood will be devastated. Especially in Andhra Pradesh and Karnataka, tobacco growing is the main source of livelihood for farmers and moreover India is the place where the tobacco grow year-around. AS per FCTC articles 17 and 18, the government should provide technical and financial aid assistance for economical transition to all stake holders whose livelihoods are seriously affected as a consequence of tobacco control programs, but after so many research and field trials they identified that it takes so many years. However, now the working group abandoned its original mandate and came out with new set of recommendations like restrict/stop all financial and technical support for tobacco farming; mandate the seasons when tobacco can and cannot be grown; limit, then reduce, the land area where tobacco can be grown, dismantling all tobacco governing bodies and reduce tobacco production. These irrational destructive proposals are going to be destroy the million lives of tobacco dependents by not offering economically viable alternative crops and livelihood.
I think the FCTC treaty is autocratic and imposed one, because the veto powered nation- United States of America haven't ratified the same and other large tobacco production countries like Argentina, Zimbabwe, Malawi and Indonesia were never signed the treaty. If India implements these guidelines, then non signed countries may dump their tobacco products ,they will increase their production and it may lead to contraband trading, then Indian tobacco farmers livelihood will be in trouble and the Indian economy will go down i.e. almost Rs.13,500 crore of excise revenue and Rs 4,160 crore of export revenue. I am not against to tobacco control, government is spending millions of tax payers' money towards public health and creating awareness on tobacco consumption risks but I request our Indian government to refuse these unreasonable, imposed FCTC proposals and think in a pragmatic approach to help tobacco farmers for their smooth economic livelihood transition.
Sunday, July 08, 2012
Indian farmers need a restructured CACP
The well know basic economic principle for the marketable produces is : Cost of production + considerable percentage of margin= Price of the product. But this basic principle is not applied to Indian farmers, their farm products are sold at horrible losses. The government and the government advisory commissions are forcing the farmers to sell their produces with very less prices which are not even matched to the cost of production. The government fixes the Minimum Support Prices ( MSP) for major agriculture commodities by the Commission for Agriculture Cost and Prices (CACP) recommendations. The CACP considers various valid points to determine the support / remunerative prices for the agriculture produces. Nevertheless, the CACP has not been recommended the remunerative price for farmers from past ten years.
Based on the " Cost of the production theory of value", each and every product or service price can be decided by the cost for producing the same. CACP has been considering the Cost of Cultivation (C2) while assessing the agriculture commodity prices, but there is some serious flaws in calculation criteria which causes the underestimate of actual costs and moreover the MSP doesn't even equal to the actual Cost of Cultivation. As we know that how the input costs have been increased from past few years such as fertilizers, labor cost, diesel, fodder and cattle feed. The average labor wages have increased by 75% in past three years and the fertilizers are more than doubled. But the CACP has announced the MSP hikes for 2012-2013 crops are ranging from 16% to 53% on 2008 -2009 data. CACP has been using the old data ( 2008-2009 )for assessing the current crops support prices and also the data of 2008-2009 itself had contested by the farmers organizations in terms of number of samples and calculation mechanism.
CACP usually depends on Department of Economics and Statistics (DES) of Department of agriculture for data collection and the data contains the information of Area/Production/Yield (APY). But there are some controversies on interpretation of the data among the determining of MSPs and other purposes like calculating GDP, planning commission and economic indicators. Sometimes CACP also collects the data on its own but it's not collecting ample number of samples and also while computing the cost of production there is no consideration for crop insurance, marketing and transportation cost paid by the farmers. Still, the CACP's recommended MSPs are faulty and unfavorable to the farmers and they are losing Rs.240,000 of crores every year for just because of underestimated MSPs by CACP.
All farmers organizations have been reiterating for National Commission on Farmers recommendations for fixation of the remunerative price i.e. C2 +50% profit margin on C2, but the CACP is computing the prices on the obsolete data of 2008-2009. It has to take previous year data for computing the consecutive year prices and it should consider all prescribed 12 factors while formulating the price recommendations. Not only 12 aspects but also other issues like inflation, cost of living for farmers, and losses due to import - export policies. However, Indian farmers need a revived CACP since it fails to protect their best interests, it should be dismantled and restructured with new terms and references.
Based on the " Cost of the production theory of value", each and every product or service price can be decided by the cost for producing the same. CACP has been considering the Cost of Cultivation (C2) while assessing the agriculture commodity prices, but there is some serious flaws in calculation criteria which causes the underestimate of actual costs and moreover the MSP doesn't even equal to the actual Cost of Cultivation. As we know that how the input costs have been increased from past few years such as fertilizers, labor cost, diesel, fodder and cattle feed. The average labor wages have increased by 75% in past three years and the fertilizers are more than doubled. But the CACP has announced the MSP hikes for 2012-2013 crops are ranging from 16% to 53% on 2008 -2009 data. CACP has been using the old data ( 2008-2009 )for assessing the current crops support prices and also the data of 2008-2009 itself had contested by the farmers organizations in terms of number of samples and calculation mechanism.
CACP usually depends on Department of Economics and Statistics (DES) of Department of agriculture for data collection and the data contains the information of Area/Production/Yield (APY). But there are some controversies on interpretation of the data among the determining of MSPs and other purposes like calculating GDP, planning commission and economic indicators. Sometimes CACP also collects the data on its own but it's not collecting ample number of samples and also while computing the cost of production there is no consideration for crop insurance, marketing and transportation cost paid by the farmers. Still, the CACP's recommended MSPs are faulty and unfavorable to the farmers and they are losing Rs.240,000 of crores every year for just because of underestimated MSPs by CACP.
All farmers organizations have been reiterating for National Commission on Farmers recommendations for fixation of the remunerative price i.e. C2 +50% profit margin on C2, but the CACP is computing the prices on the obsolete data of 2008-2009. It has to take previous year data for computing the consecutive year prices and it should consider all prescribed 12 factors while formulating the price recommendations. Not only 12 aspects but also other issues like inflation, cost of living for farmers, and losses due to import - export policies. However, Indian farmers need a revived CACP since it fails to protect their best interests, it should be dismantled and restructured with new terms and references.
Friday, June 01, 2012
Subsidy CUT, Rupee DIP, Fertilizer prices UP
India uses low quantity of fertilizers against the global average, the
monsoon plays major role on consumption pattern in India, a good rainfall makes higher usage of fertilizers for enhancing crop yields. Due to Euro zone crisis
the world markets are volatile, Indian
economy also experienced the same
negative impact. India has been depending on imports for its major soil
nutrient needs and the Rupee value has gone down with new record level so the
fertilizers prices are expected to raise. The components for making fertilizers
like naphtha ,fuel and natural gas prices
have been increasing year by year and if the fuel price increases, invariably
it is going to affect on fertilizer prices.
Indian farmers are already suffering from high input costs and the steep increase in fertilizer prices are going
to be more burden for them. India imports a quarter of urea, 100% of potash and
almost 70% of DAP (Diammonium Phosphate). DAP is
widely used by Indian farmers, the price has gone up to Rs.987 per bag( 50
Kilos) and it is expected to be
increased more with rupee dip. similarly
Potash has increased to Rs.720 per bag( 50 Kilos). Not only the
fertilizers and also the pesticides,
insecticides and herbicides prices have
affected by rupee slide. Acetamiprid (ACE) and Imidacloprid
(IMI) are widely used pesticides in India, their prices have also increased by
Rs.100.
The price of fertilizers and pesticides may increased by 30% due to rupee value
decline and subsidy cuts. The government
has decreased the subsidy on DAP and
other NPK (Nitrogen, Phosphorous, and Potash) fertilizers by 27% since April
2012, the subsidy for DAP was Rs 19,763 in last fiscal year now it is Rs 14,350 per tonne similarly the subsidy for MOP (Muriate of Potash) has been fixed at Rs 14,440 per tonne against
Rs 16,054 last fiscal. The subsidies for nitrogen, phosphate and potash
nutrients have also been lowered by 11.6%, 32.6% and 10.3% respectively. The
raw materials for producing fertilizers prices have also increased due to rupee
depreciation. so invariably, the kharif crops going to be very expensive for farmers with raised input costs.
Every Farmer need subsidies since they have been incurred
losses without remunerative prices, non availability of credit ,high input
costs and many more adverse reasons. If the government feels the subsidy on
fertilizers must be reduced then it should
allow the farmers to fix the prices for their produces on their own like other
industries and also the government should not intervene in agriculture exports. The UPA
government has randomly increasing the petrol prices to save the Oil marketing
companies from their losses, why can't the government do the same thing for the
farmers by fixing the remunerative
prices for farm produces. In fact, the government reduced the fertilizer subsidies as part of their austerity measure to match
the fiscal deficit but the government is
claiming that the reduced subsidy funds are going to be diverted to organic
manures and bio fertilizers. Actually the organic farmers are very less,
organic farming is picking up but
reducing the subsidies on chemical fertilizers are ridiculous since 90% of the
farmers are depend on the same.
Ministry of chemicals and fertilizers has intended to give the subsidies directly to the
farmers, it's a welcome move because the retailers are misusing the subsidies
and it's not reaching to the real beneficiaries. At this point of time the government officials
should ensure the fertilizers are sold
at MRP prices and most of the retailers might have the old stocks which they
got with old prices, they are trying to sell the same stock with new increased
prices, the government officials must control the traders not to sell with increased
prices. At least it will give little relief to farmers against the increased
input costs.
Monday, April 09, 2012
Connecting the rivers is a great idea
Over 60% of Indian agriculture is dependent on rains which is very complex, risk prone and low productivity. The problems with rain fed farming is multifaceted; difficult to adopt modern technologies, uncertainty in output and low income which affect to livelihood of farmers that leads to rural poverty and suicides. Being an agriculture dominant country India should have proper irrigation systems to distribute and manage the river water and floods. Supreme Court of India has impelled the mega project which will link the major rivers in north and south for optimum utilization of water. As we know that our Indian farmers have been suffering with crop losses due to droughts and floods and also their villages were destroyed in floods. The Inter- linking of rivers (ILR) project assures to manage the water from surplus to lacking and mitigates the flood havoc. The project expands the irrigated land that can increase the food production and able to feed 1.20 billion of Indians. The increased irrigation land will help to adopt modern technologies in agriculture for higher yields.
The river linking project involves on Himalayan and peninsular rivers, the design consists of 30 proposed links i.e. 16 in Himalayan component and 14 in peninsular component. The grand design of ILR project will add 40 million hectares of irrigated land to India, generates the 34000 million kilowatts of electricity and the navigation controls the floods and mitigates the droughts. Government of India (GOI) has been implementing the traditional methods like small water tanks, ponds, watershed schemes and lift irrigation schemes which are helpful… but very little, so India needs a durable river management system to fulfill water needs. As we know that how the city dwellers of Chennai, Hyderabad and Bangalore are in fresh water stress for their daily needs and at the same time 60% rainwater is going waste in seas. To avoid the wastage and proper management of water can be possible through river and canals channeling only.
There are many positive results with ILR but the other end the project is being criticized on various reasons and making controversial for their vested interests and political prospects. They are arguing on environmental, ecological consequences, international disputes and resettlement & displacement of the project- affected people. We have new Land Acquisition, Rehabilitation and Resettlement Bill to accomplish such issues and India need to learn from our neighboring countries like China, Pakistan and Brazil, how they completed the prestigious dams successfully for their national interest. Interlinking the rivers is an economic development process; most of the countries are constructing dams and channels for their national benefit and progress and ILR is same kind for our national energy, irrigation and drinking water needs of growing population. Population displacement and resettlement is a tough task, the projects disrupts the lives and lifestyles of the people who live in the affected areas. However, the government authorities must focus on methodologies and processes to involve all stake holders and civil societies to smoothen the process.
The arguments of the organizations who are opposing this project are baseless and vested, all these organizations are urban based, non-farm communities and they can’t understand the farmers’ perils. They live in air conditioned rooms, using magnificent and spectacular words to grab the public attention, they are failed to understand the farmer’s agony on water scarcity (so many farmers committed suicides for their crop failures due to drought & floods and unable to repay loans they had taken to drill bore wells) The can’t understand the perils of rural women who walk miles together to get bucketful of drinking water. Some of the political leaders are confusing and exasperating the people by giving the false interpretation i.e. this project is going to divert their own water to other areas. But all these arguments are unjustifiable and their electoral prospects only, because the ILR is a national project and this is for entire nation’s benefit and progress not for particular state.
In spite of these critiques and arguments, the ILR project is the only option to fulfill the water needs of growing population. India has been experiencing the floods & droughts and the sufferers used to get ex gratia payments from Prime Minister Relief Fund or Chief Minister Relief Fund, etc. from past 60 years. Instead of that if this gigantic project is completed… all disasters can be prevented, but it requires lot of money and time. As per Millennium Development Goals by UNDP, safe drinking water and sanitation is a human right and our central government should not consider the political limitations for water resources. The central government should take the control on inter-state rivers, the project must be included in five years plan as top priority, make involving all stake holders efficiently and this should be completed in a time bound manner.
The river linking project involves on Himalayan and peninsular rivers, the design consists of 30 proposed links i.e. 16 in Himalayan component and 14 in peninsular component. The grand design of ILR project will add 40 million hectares of irrigated land to India, generates the 34000 million kilowatts of electricity and the navigation controls the floods and mitigates the droughts. Government of India (GOI) has been implementing the traditional methods like small water tanks, ponds, watershed schemes and lift irrigation schemes which are helpful… but very little, so India needs a durable river management system to fulfill water needs. As we know that how the city dwellers of Chennai, Hyderabad and Bangalore are in fresh water stress for their daily needs and at the same time 60% rainwater is going waste in seas. To avoid the wastage and proper management of water can be possible through river and canals channeling only.
There are many positive results with ILR but the other end the project is being criticized on various reasons and making controversial for their vested interests and political prospects. They are arguing on environmental, ecological consequences, international disputes and resettlement & displacement of the project- affected people. We have new Land Acquisition, Rehabilitation and Resettlement Bill to accomplish such issues and India need to learn from our neighboring countries like China, Pakistan and Brazil, how they completed the prestigious dams successfully for their national interest. Interlinking the rivers is an economic development process; most of the countries are constructing dams and channels for their national benefit and progress and ILR is same kind for our national energy, irrigation and drinking water needs of growing population. Population displacement and resettlement is a tough task, the projects disrupts the lives and lifestyles of the people who live in the affected areas. However, the government authorities must focus on methodologies and processes to involve all stake holders and civil societies to smoothen the process.
The arguments of the organizations who are opposing this project are baseless and vested, all these organizations are urban based, non-farm communities and they can’t understand the farmers’ perils. They live in air conditioned rooms, using magnificent and spectacular words to grab the public attention, they are failed to understand the farmer’s agony on water scarcity (so many farmers committed suicides for their crop failures due to drought & floods and unable to repay loans they had taken to drill bore wells) The can’t understand the perils of rural women who walk miles together to get bucketful of drinking water. Some of the political leaders are confusing and exasperating the people by giving the false interpretation i.e. this project is going to divert their own water to other areas. But all these arguments are unjustifiable and their electoral prospects only, because the ILR is a national project and this is for entire nation’s benefit and progress not for particular state.
In spite of these critiques and arguments, the ILR project is the only option to fulfill the water needs of growing population. India has been experiencing the floods & droughts and the sufferers used to get ex gratia payments from Prime Minister Relief Fund or Chief Minister Relief Fund, etc. from past 60 years. Instead of that if this gigantic project is completed… all disasters can be prevented, but it requires lot of money and time. As per Millennium Development Goals by UNDP, safe drinking water and sanitation is a human right and our central government should not consider the political limitations for water resources. The central government should take the control on inter-state rivers, the project must be included in five years plan as top priority, make involving all stake holders efficiently and this should be completed in a time bound manner.
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