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Jan-Feb 2002
 
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The State Government should amend the and Ceiling Act to promote corporate farming and promote collective schemes for greater private investment in agriculture


 

 

I refer to one of the major policy directives contained in the National Agriculture Policy on privatisation of agriculture and price protection of farmers in the post-quantitative restrictions regime relating to competitiveness. Domestic producers cannot meet competition after the removal of trade barriers. In several states, prices have gone below cost of production viz., coconut oil in Kerala, milk in most parts of the country, edible oils in oilseed growing states of the country, certain fruit producers, to name a few. This is because our reforms are painfully slow and without proper direction. Indian farmers who were sheltered by a highly protective regime until recently, now resist change and expect protection to continue. Farmers should instead be induced to produce for the market and the benefits explained to them.
The following are key areas where state governments, the private sector and NGOs could participate to make a major breakthrough in the world agricultural market:

Land Field

State governments should:

  • Allot degraded land for reclamation and cultivation by the private sector.
  • Encourage small and marginal farms to consolidate their holdings for colletive or cooperative farming.
  • Promote a regulatory authority to monitor proper usage of these wastelands.
  • Amend the Land Ceiling Act to promote corporate farming. n Promote collective schemes, for greater private investment in agriculture.
  • Give appropriate training to increase production while creating awareness of the importance of environmental protection with regard to soil and water management.
  • All these measures will generate employment.

    Private sector
    should:
  • Evaluate suitability of degraded land and grow crops for value addition, making commercial production internationally competitive.

    Watershed Development and Irrigation
Private sector should:
  • Participate in watershed development and rainwater harvesting schemes including rejuvenation of traditional systems, to make more land available for contract farming.
  • Reduce energy consumption and increase efficiency by use of capacitors for pump motors, etc.
  • Undertake mass production of drip and sprinkler irrigation systems to make them more affordable, improve the quality of drip and sprinkler nozzles to make them more durable and accurate.

    State governments should:
  • Initiate the setting up of professionally managed water users associations and introduce a consultative exchange with farmers on issues such as pricing, usage, design and modernisation, crop plans and maintenance services.
  • Provide incentives to improve rainwater storage especially in areas of low rainfall which could extend availability of water and increase area of land brought undercrops. More than 60 per cent of arable land in India is in arid and semi-arid areas.

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