This is an article published on August 15 in the Perspective page of the Statesman.
Former Union Agriculture Secretary Siraj Hussain opined his views on the scenario in the agriculture sector.
Please click to see the printed version https://epaper.thestatesman.com/c/54237992
About Siraj Hussain, Former Union Agriculture Secretary, Government of India.
Former Union Agriculture
Secretary Siraj Hussain was one of the main officers, who prepared a roadmap
and formulated most of the agriculture schemes announced by PM Narendra Modi
during the Modi 1.0. He also headed the Food Corporation of India—a statutory
body under the Ministry of Consumer Affairs, Food and Public Distribution,
which is mainly engaged in the procurement and distribution of main Rabi and
Kharif crops in India. Prior to Union Agriculture Secretary post, he was the
Union Secretary in Food Processing Ministry.
The 1979 batch Uttar
Pradesh cadre IAS officer has also served in Uttar Pradesh in various
capacities including the chief of UPSIDC (Uttar Pradesh States Industrial
Development Corporation), Registrar of Cooperatives Societies and Secretary to
UP Chief Minister.
In 2016 Siraj was
awarded Honorary Doctorate by Acharya NG Ranga Agriculture University in Andhra
Pradesh. Since his superannuation in January 2016, he has been working with
ICRIER (Indian Council for Research on International Economic Relations) as
Visiting Senior Fellow. Besides, he has also been engaged in research on
various aspects of Indian agriculture and food processing and has authored
several research papers on agriculture and rural economy. Siraj spoke to Vijay
Thakur, Special Representative, The Statesman, on the issues related to
farmer’s problem in the country.
Question:
Lockdown had an impact
on all sector in the country. How do you see Lockdown and market slump
thereafter on Agriculture and its allied sectors?
Answer:
The situation was very
bad during the Initial days of lockdown during March. Farmers were beaten up at
some places. In some places, it was reported that they were not allowed to
transport their produce to market. It caused huge loss to farmers engaged in
fruits and vegetable crops.
However,
the government took prompt action and exempted agriculture operations from
the lockdown. As a result, we had record high procurements of wheat. Farmer’s
did not suffer much in the procurement process. wheat grower got MSP but Channa
and Cotton crop farmers procurement was below the MSP. In nutshell procurement,
this time was better than previous years.
Question:
It means there was
little impact of lockdown and subsequent market slump on agriculture and its
allied sector.
Answer:
No. It had a real
impact on two main sectors Poultry and milk sectors. The Producers were very
badly hit. Most affected were the poultry farmers, the price of a live bird,
which was around Rs 85 per Kg in February-March came down to Rs 35 a bird.
So was the situation
of milk producers. The bulk producers, which contributes to nearly 25 % of the
milk consumption, did not buy it to that level. According to a rough estimate,
the price of bulk milk price went down by Rs 10 a litre. That is why milk
producers are agitating in Maharashtra.
Question:
Will Covid-19 have an
impact on Kharif production as well?
Answer:
Thankfully, this time
Kharif operations have taken place in time because of good and timely Monsoon.
Availability of labour has increased in the farming sector as well because of
the job. Direct seeding of rice has an impressing increase in Punjab.
Present scenario indicates that we would have record production of Kharif this
year.
Question
It means everything is
going to be fine in the Agriculture Sector?
Answer:
No, The problem is
probably still there. We may have the problem of plenty this time. The Record
high Kharif production is good, but the purchasing power of people have gone
down due to lockdown and slump in the market. The decrease in income and
increasing unemployment due to COVID 19 may not generate as much demand as we
had expected. Migrant labours who had gone back home are facing a tough time.
They are earning less than what they used to earn in urban areas. I think it
would be very difficult for farmers to get a good price for their produce.
Question
But then we have
export options?
Answer
As regards the export
of our Kharif crop major exporting crop is rice and cotton. Export of Cotton we
cannot predict, as most of our cotton goes to China. Considering the present
scenario, it is difficult to comment on its export.
Now coming to rice,
unfortunately, Indian rice export has also been declining in the international
market.
In case of rice our
major importer country is Iran, thankfully it would continue to import it from
India. Look at the import figure, the import of non-basmati Indian rice has
come from USD 3 Billion to 2 Billion—a 33 % decline. Similar is the situation of
Basmati rice—it came down from USD 4.7 billion to USD 4.3 Billion.
Globally also, the
purchasing power of people has gone down. And that is our worry. I still do not
think the global demand for food products would go down that much. I am not
sure if we will get a better price in the international market as well.
Question:
What is your hope from
the Agriculture Sector? What more you think the government should do to help
the farmers?
Answer:
Government has taken a
few good steps. They have opened up the market. Now a farmer can sell their
produce anywhere in the country through E-NAM. It has allowed movement of
agriculture produce anywhere in the country. If all goes well, it would bring
very good results in future. New players will enter the market, would give a
better price to the farmers.
Then e-commerce
companies are also coming up. They would also procure directly from the
farmers. The big question still remains, the private players would come only
when there is demand in the market. We also have some hope from the
infrastructure AgriFunds, it may have some impact. I Think government lacks
long term plans for agriculture funds.
Question:
Modi Government had
announced the plan to double farmer’s income by 2022. Do you think the
government would be able to meet its target in the wake of COVID-19?
Answer:
I have repeated it
several times that nominally income of farmers doubles every six years without
any impact. This is data from NSSO surveys. In 2002-03 the average monthly
income of farmers stood at Rs 2115, grew to Rs 6426 by 2012-13—an annual
increase of 11.75 %. Which means regardless of massive government efforts, the
nominal income has already been growing at the target set by the Modi
Government, But actually doubling of real income would take 16 years to double.
And if the government is talking about
doubling real income, it needs 20 % increase every year in farmer’s income.
This is a real challenge, some good steps have been taken, yet I see no major
long term strategy of the Modi Government in this regards.