TODAY -

2014 : Why not to attach top priority to farm sector?

Dr B K Mukhopadhyay *

Why not to attach top priority to farm sector?
Why not to attach top priority to farm sector?



What the latest statistics reveal? Some 57 percent of the developing world's rural population lives in lower middle- income countries, and 15 percent lives in the least-developed countries. Even though historical trends show that agriculture's share diminishes over time [in US it is around 2 percent as compared to India's around 18 percent of GDP] and the share of population in rural areas declines, there will still be more poor people in rural areas than in cities for at least a generation.

The fact remains that though most successful developing countries have not relied on agriculture for export expansion and growth, yet growth in agriculture has a disproportionate effect on poverty because more than half of the populations in developing countries reside in rural areas and poverty is much higher in rural areas than in urban areas.

It is better not forgotten that around 15 percent of the world population remain below the poverty [line of $1.25 per day [around 18 percent of population below the poverty line of $2 per day lived even in China!]. India's situation has not been good too on this score. Distribution of income between the people is –point to see. Inequality [measured with the help of Gini coefficient – which has a value of one when all the income in an economy accrues to one person and zero when every person in an economy has the same, equal income] combating cannot be there if the micro-factors are not taken care of.

In India the fault not only lies with the planning process [politics overriding the economic considerations], but also with very poor implementation process / project delays and the like. Even where the plan had been a good one and implementation done well, the post follow up remained far from being satisfactory as a result of which continuous assets generation got terribly blocked.

In spite of the fact that the farm front scenario has been changing, it must be admitted that the reality leaves much to be desired. Not only India has backlog but the same is true globally! High and volatile commodity prices and their implications for food insecurity remain clearly among the most important issues facing Governments today.

So far economies like India are concerned is it not a fact that the gains from green revolution has been steadily fading away? Judging by the ongoing facts and circumstances population growth is not going to retard especially in the developing block, while food grains out put would not be able to register commensurate growth - such a situation needs immediate tackling.

And here lies the biggest challenge – farm development. It is clear that the developing nation's GDP growth has been mainly hinging upon the industrial sector [read corporate] backed by the services sector. It would have been more attractive and at the same time immensely useful had there been equal growth in the farm sector. That was not there. Problems galore in spite of the fact that the plan allocations have been stepped up and a number of measures have been taken by both – at the Centre and at the state levels.

So come 2014 - the "Sense of Urgency" has to be taken with all degree of seriousness. A number of examples could be cited which could prove effective optional utilization of resources had not been there. Pulses output in India hovers around 16 to 18 million tones right from the 60's, it being the top supplier of protein to non-vegetarians.

World market has been tremendous too for agri products. But till now our share has not been able to capture even 1 per cent! Even Bangladesh, Venezuela, have emerged meaningfully to be tough competitors in mango market. A number of developing countries are still largely dependent upon imports of cooking oils we have still less wheat and rice per capita than in the 80's.

Vast favourable agro-climatic conditions could have given good returns by now for commodities like grapes, guava, pineapple, etc. No denial of the fact: there has been a significant rise in the quantum of farm credit in the last decade in particular. It is a fact that credit flow to the farm sector has been witnessing steady rise over time. Banks have considerable exposure to Priority Sector lending and more particularly in various sectors of Agricultural lending.

The need is, thus, there to formulate a credit policy especially for the small and marginal farmers. Actually, the expectations are higher and thus the formulation of a credit policy exclusively for the small and marginal farmers could go a long way in channelizing the resources in a planned and directed manner. It is good that the private sector banks are also coming forward.

In the recent years the Banks have been focusing on rural credit and the working with micro-finance groups has attracted attention. Banks have also been exploring the possibilities to further extend works with the Co-operative societies so as to expedite flow of credit in the rural sector as till date Banks are not allowed to work directly with the Co-operative societies for lending to this sector.

There is no doubt that lending is still skewed in favour of a few industrial houses. Naturally the Clarion call is there to increase the lending speed to the farm sector. Banks are to focus on the bottom of the pyramid by giving loans to tenant-farmers, small and medium enterprises and extending micro-credits in villages. It has rightly been observed that for the PSBs, private Banks, foreign Banks, RRBs and Co-operatives farm lending would be the key area in the days to come. Over urbanization dominates the scene and increasing trend in the matter of incidence of urban poverty galore resulting in further depreciation of healthy living in metro-cities.

Rural savings generated continue to be used for metropolitan/urban development and migration of fund continues if the current trends are of any indication in as much as the top 100 centres which account for 65% of deposits are able to grab 73% of credit so far as banking business indicators are concerned and thus furthering the incidence of regional imbalance. Truly, institutional finance alone could not change the scenario in the very absence of other infrastructure and allied supports. Simply asking the banks to double credit flow/utilization in next three years is not enough. The roots must be taken into account.

In fact, agriculture sector does not require money flow alone – more important is to have the infrastructure development at the earliest. Dependence on rain god adds to the woes. And then floods and droughts becoming a annual ritual. Productivity gets a blow in the absence of quality seeds and other inputs supplies, a slow modernization process.

Consistent decline in the share of private- sector investment in the agriculture sector is a matter of concern. This trend needs to be reversed through creation of a favourable policy environment and availability of credit at reasonable rates on time for the private sector to invest in agriculture.

That is why the crucial requirement is there to beef up coordination among different sections involved in the process of farm sector's development. There is no short cut formula on this score and it is to be especially seen by all concerned that repayment culture is not distorted. Recycling of farm still poses the biggest menace. Huge provision for loan waiver cannot and should not be the escape route though politically attractive. Assets generation over space and time is badly required at this juncture. Practical support to the farmers stay at the top if ultimately a changed picture is aimed at, especially when potentiality galore.

Agricultural development, in fact the whole process of rural development, requires a shot in the arm. Reforms should not be stopped since once we have entered into the tunnel every effort must be made to come out of the tunnel, the process being very very difficult and complex too, simply because of the fact that the steps taken till now as well as the very implementation process is full of gaps which should have been bridged during last 60 years of planning. Piece meal measures do not have the capability to register growth and development in a continuous and spontaneous manner.

That is why the time is for actions so that the gaps are taken care of in a bigger and speedier way keeping in view the global trend. Especially for food grains a lot depends on this part of the world [India, China where half of the world population live in]. The global factor has to be essentially kept in view as many of the countries are speedily opening up and want to have a good niche in the market plus the responsibility is also there with the betters to see development taking place in Mali, or Ethiopia, Myanmar and the like!


* Dr B K Mukhopadhyay wrote this article for The Sangai Express
The Writer is a noted Management Economist and can be contacted at m[DOT][email protected]
This article was posted on December 24, 2013.


* Comments posted by users in this discussion thread and other parts of this site are opinions of the individuals posting them (whose user ID is displayed alongside) and not the views of e-pao.net. We strongly recommend that users exercise responsibility, sensitivity and caution over language while writing your opinions which will be seen and read by other users. Please read a complete Guideline on using comments on this website.




LATEST IN E-PAO.NET
  • Violence in Manipur 2023-2025 : Timeline
  • Condemnation of Armed Football Match
  • Guwahati Asian Film Fest : Day 1
  • Of guns and football
  • 76th Republic Day @ Kangla #3 : Gallery
  • Epom Amadei Ithak - A theatrical revisit
  • Economy of the dynamic global landscape
  • Is the Bhagavad Gita relevant today ?
  • Healthy hair in Winter
  • Guwahati Asian Film Festival (GAFF) 2025
  • From the battlefields to Delhi
  • Speculations on replacement of Chief Minister
  • 12th Legislative Assembly #2 : Gallery
  • Education & its disjuncture in Manipur
  • HUN-Thadou Cultural Fest 2025 : Theme
  • Coo :: Poem
  • Agartala Coach : India U-19 Women Cricket
  • The story of the village of hope
  • Career choice in wetlands
  • CM in Delhi to meet Shah
  • After failed plastic ban bid, on brickfields
  • New catfish species discovered in Chakpi
  • Love, Unsure :: Poem
  • Manipur's border battles: Deeper conflict
  • A world without leprosy
  • Origin of corruption & possible remedies
  • The question of life
  • 'Sereki' unveils Majuli-themed campaign
  • Posers over summons to Delhi
  • Addiction-free campaign
  • Mera Chaorel Houba @Kangla #5 : Gallery
  • Lamtanganba, Adum , Mahaiso : eMing
  • Manipur : Champions Jr Natl Sepaktakraw
  • Effective Unified Command approach
  • Saurashtrian Tamils
  • Accepting the change :: Poem
  • From Kumbh to heaven direct
  • Edge of the seat suspense
  • Wetlands revival efforts reaping fruit
  • Natambakta : Play by JNMDA #4 : Gallery
  • EIIFF 2025 unveils Festival Memento
  • Climate change & plant diseases
  • Shija Hospital- AHPI Healthcare Award
  • Budget 2025: A big gift for middle-class
  • The Science of Success : Attitude #2
  • Cakeology 2025: India's largest cake expo
  • Need to stick to a consistent narrative
  • Leniency on tobacco ban aiding demographic
  • 76th Republic Day @ Kangla #2 : Gallery
  • Pheiroijam Christina - 21st Miss North East
  • Manipur: Gold at 28th Jr National Sepaktakraw
  • Clarion call for redeeming our rightful future
  • The Power of Poppy - 67 :: Poem
  • Clean energy for sustainability
  • Union Budget: Industrialists from NE speaks
  • Balaram Sougaijamba: General of Manipur
  • Nikhil Okram crowned 14th Mister North East
  • Chadong village: Rising from waters with hope
  • Financial literacy for common man
  • Obituary: (L) Pu Thangkholen Sitlhou
  • Nail care in Winters
  • State of war since 2023: No winner, only losers
  • Talks on new district row
  • Radio E-pao: 1000+ songs from Manipur
  • Maibi Jagoi @ Kwak Tanba : Gallery
  • February Calendar for Year 2025 : Tools
  • Ballad of Letting Go :: Poem
  • 2nd Eikhoigi Imphal International Film Fest
  • Deeper exploration of term 'Hill-Valley Divide'
  • Children's Book to adopt 'Look East Policy'
  • Pony registration & conservation
  • Endless suffering of internally displaced child
  • 21st Ningtham Kumhei Fest #2 : Gallery
  • Thiyam Suryamukhi conferred Padma Shri
  • Isolate Kuki Militants by facilitating safe return
  • Sports Meet held at Rongdai Village
  • Eco-Apocalypse: Prevent collapse with Green
  • Grand Finale : 21st Mega Miss North East
  • Time to give more teeth to ST demand
  • 5 years of ILP; what about NRC demand ?
  • Remembering Md Ladu, celebrated polo player
  • The Lament of Love's Deceit :: Poem
  • Need for inculcating value based education
  • Royte - Times Young Entrepreneur Award
  • Glass Child Syndrome ! 'Sibling rivalry'
  • 6 Films for NE Section at GAFF 2025
  • Pony registration & conservation
  • Impartial anti-extortion cell need of the hour
  • 76th Republic Day @ Kangla #1 : Gallery
  • Conservation Strategies of Pethia manipurensis
  • Remembers 13 Brave Indian Soldiers
  • Workshop: Intl Year of Quantum Science
  • Governor's role and discretionary powers
  • Physics workshop for educators at Agartala
  • Who wins Delhi - Daru or Dharma
  • War on Drugs: A war Manipur cannot loses
  • NE turning into transnational drug hub
  • Essence of Gaan-Ngai #2
  • Manipur's dystopian reality
  • The day Light reached the hills
  • 2nd Eikhoigi Imphal Intl Film Fest 2025
  • Why is depreciation of rupee not stopping ?
  • An introduction to Rabies (Hydrophobia) #5
  • Thoithoiba Yelhou Yangkok Artist #2 : Gallery
  • Republic Day Titbits
  • NIT Manipur: Best Design Award @VLSI Design
  • The Power of Poppy - 66 :: Poem
  • Grand Finale: 14th Mega Mister North East
  • Application : FILMART, Hong Kong
  • The Science of Success : Attitude #1
  • 21st Ningtham Kumhei Fest #1 : Gallery
  • Demographic for balkanisation of Manipur
  • Training on Mushroom Cultivation at Nambol
  • Jugeshwor Kshetrimayum receives GELA 2025
  • Construction Committee of Meetei Yumpham
  • Call against misuse of social media
  • Positive & negative aspects of social media
  • In Search of Peace in Manipur
  • Embracing the Shadows :: Poem
  • Dr Manmohan Singh will live on
  • Rise in the price of medicines
  • Respecting the dead- Denying is a disgrace
  • Winter skin care tips for oily skin
  • Illegal immigrants :: Of FMR & border fencing
  • JD-U row exposes national parties' apathy
  • State Gaan-Ngai @Sagolband #2 : Gallery
  • On 'Only BJP can save Manipur'
  • Frontline health workers dispelling darkness
  • 14th East Himalayan Trade Fair
  • Life is plastic
  • Killers on the road : 834 lives lost
  • Call to action to save State's wetlands
  • Essence of Gaan-Ngai #1
  • The Taste of Dreams wins @Red Intl Film Fest
  • Science: 3rd eye for Meitei-Kuki reconciliation
  • Northeast flies high in direct selling
  • Mastering focus amidst distractions
  • An introduction to Rabies (Hydrophobia) #4
  • Indo-Naga Talks (From 2012) :: Timeline
  • BJP : Tepid response from the hills
  • BABINA Hospital sets example in healthcare
  • Nitya Ras @Nongmeibung #1 : Gallery
  • Agonizing reality of our country's veteran elites
  • Historicising the colonial narratives
  • NSS Team Departs for National Integration
  • HUN-Thadou Cultural Festival 2025
  • Time to recreate Naga Peoples Convention 2.0
  • Career in nutrition
  • Need to give more meaning to War on Drugs
  • Time for real action not empty rhetoric
  • Foundation: Manipur Press Club #2 : Gallery
  • "Aronba Wari" :: Shumang Leela Synopsis
  • Tripura's livelihoods challenges
  • Archaeological Exhibition @ Kangla : Gallery
  • Gaan-Ngai @Chaopok village #1 : Gallery
  • Manipur needs to affirm her tribal roots
  • Madras/Chennai- 1989 till 2024 : Gallery
  • Investigate "arms recoveries" in Mizoram
  • Training on Mushroom Cultivation
  • NE Direct Selling Conference & Expo
  • Response of Delhi in last 20 months
  • Regulated entry after FMR scrap, border
  • Mutua Bahadur : Preserving Manipuri culture
  • Competitive Altruism: Resolving ethnic conflict
  • Pithe Puli Utsav at Agartala
  • Building the best version of yourself
  • Guwahati Asian Film Festival 2025
  • Tips to keep your lips soft & smooth in winter
  • Subsidised flight tickets for all
  • MCPCR alert on child trafficking fear
  • Imoinu Erat Thouni @ Wangkhei : Gallery
  • Gaan-Ngai celebrating Culture in Delhi NCR
  • The Weeping Gods of Manipur :: Poem
  • Disarming Kuki-Zo armed groups under SoO
  • Why nurses deserve more recognition, pay
  • The hidden truths of our social media lives
  • MMTU stand bang on target: Recapping May 3
  • Enhancing aerial options to ease travel woes
  • 2nd Emoinu Fish Festival #1 : Gallery
  • Sustainable development - climate action #1
  • RIST Talk- 62 : Artificial Intelligence (AI)
  • "Technically a BJP MLA will rule Nagaland"
  • Makar Sankranti : vibrant customs & traditions
  • Why gold is a strong hedge but ...
  • Delhi date on January 17
  • Onus of addressing tribal issues on new Guv?
  • Nupilal Ningshing Lamjel #2 : Gallery
  • Licypriya Kangujam: Nat'l Youth Day Award
  • Barak Festival advocates Peace, Progress
  • 'Yu', not fully liberalised
  • Article 355 equals Governor's Rule ?
  • Calls to vote with conscience
  • Zingtun academy leading by example
  • State Gaan-Ngai @Sagolband #1 : Gallery
  • Is Kuki-Zo community pushing Nagas to edge?
  • Will drive to find-treat-prevent TB continue ?
  • Smart Cities, dustier roads ?
  • ST of NE & Dalits of mainland India
  • That May :: Poem
  • Understanding Red, Yellow, Green
  • Cong posers on Govt aid to SoO group
  • Culturals @Tri-Nation Football #1 : Gallery
  • Gaan-Ngai festival of Kabui/Rongmei
  • 40 Years & 04 Stations- Part IV (Madras)
  • Manipur Gold: 34th Sr Natl Sepaktakraw C'ship
  • Public Health Risk Management Training
  • The Power of Poppy - 64 :: Poem
  • The Science of Success #4
  • Hingminashi Eikhoi : Call for unity in diversity
  • A Hymn for Goddess Emoinu
  • Are the foods we eat, correct ?
  • Gangtok, Sikkim (1983 till 1988) : Gallery
  • The Taste of Dreams : Teaser Unveiled
  • Be a child of courage & conquer obstacle
  • Hans Renal Care Centre in Guwahati
  • Focus on pre-May 3, 2023 period
  • Conundrum over the genesis of crisis
  • Misna Chanu aids to Jiribam IDPs : Gallery
  • North-East Students invited to JEE Main 2025
  • Empower the State else avoid blame on CM
  • Obituary : Thaunawjam Brajamohon
  • Hope :: Poem
  • An introduction to Rabies (Hydrophobia) #3
  • Winter makeup tips for dry skin
  • Imphal, Delhi still groping in the dark
  • Tension over assault case, land claims
  • Mega Protest Rally, end AFSPA #2: Gallery
  • Foundation: Manipur Press Club #1 : Gallery
  • Ningol Chakkouba @ Delhi #3 : Gallery
  • Indigenous Pottery Making @Imphal : Gallery
  • AIR Radio Imphal Station - Live streaming
  • Nupi Lal Memorial @Pune #2 : Gallery
  • The historical account of Kabaw Valley #3
  • Featured Front Page Photo 2024 #6: Gallery
  • E-Pao.net : 25th Anniv & 2025 Wishes
  • Protest @Delhi - Murder of Meiteis #2: Gallery
  • "Connections", art exhibitt @ DC : Gallery
  • Observance of Thang-Ta Day #1 : Gallery
  • Mera Chaorel Houba #4 : Gallery
  • Nupi Lal Memorial @Pune #1 : Gallery
  • Meitei Mayek Tamba : Online Classroom #5
  • Indigenous People Cultural Fest #1 : Gallery
  • Maibi Jagoi @ Mera Houchongba: Gallery
  • Mega Protest Rally, end AFSPA #1: Gallery
  • Ta Ta TabuHtoN :: Seireng
  • Downloadable Manipuri Calendar :: 2025
  • GHOST of PEACE :: Download Booklet