Page 15 - English Tehelka Issue 3&4

BudgetSpecial BUDGET

Agrarian distress: Govt funds in rural infrastructure includ- credit flow but expansion of rural and divergence of funds.

branch network has been noticed in
ing irrigation, research and exten-
No wonder that a fourth of di-
rightly focuses on farmer sion services. the last two decades. Rural branches rect agriculture lending is done in
of public sector financial institu-
urban/metro branches in the garb
Credit Flow to Agriculture and
of food-processing, warehousing,
tions have been flushed with funds
food-parks, etc. Besides, close to
Farmer Suicides
but farmers are still at the mercy of
woes and rural economy Going by official claims, the alloca- the unorganised sector. Small and 50 per cent of agriculture credit is
marginal farmers, who constitute
tion of funds under priority sector
extended in the last quarter of a fi-
nancial year (January, February and
lending has been scaling up con-
almost 80 per cent of the total farm-
sistently year-on-year and the flow
farmers are minimum as this part
of agriculture credit that stood at ing population, are kept out of the March). The credit requirements of
loop due to definitional delusions
96,000 crore in 2004 has jumped of the year is neither sowing nor
The plight of the farm sector was highly evident but hardly any concrete measures were taken to to 10 lakh crore now. Not only harvesting time. So farmers have to
address issues concerning agriculture. komal amit gera finds out what ails the significant sector and Minimum Support resort to non-institutional sources
— private moneylenders and com-
what can be done to improve the situation Growth rates of GDP of Agriculture Price is announced mission agents — for urgent needs
Sector and GDP of the Economy from by the govt mostly at exorbitant rates of interest.
1981-82 to 2016-17 (%) during the sowing Agro Economist Ramakumar gives
A study conducted by noted
he message is loud and culture sector comes even as the growing numbers of farmer sui- Period Growth rate Growth rate of season, when it is a lucid explanation of how the rich
Agriculture
of economy

clear. The Union Budget Finance Minister in his last budget cides across India in recent years. were cornering the funds meant
2018 was focussed on speech had pegged the agricultural It was perceived that economic 1981-90 2.9 4.7 too late to prepare for the poor. In 1990, loans worth
the rural sector. Prime growth rate to be 4.1 per cent which liberalisation would ensure a 1991-1999 2.8 5.3 additional land less than 2 lakh constituted 92 per
T Minister Narendra Modi now seems to be wishful thinking. favourable shift in terms of trade for 2000-2009 2.4 6.8 cent of loans under direct finance
and Union Finance Minister Arun This evidently indicates the dichot- agriculture in India. Policymakers in 2010-2017 2.1 4.5 and for purchase on agriculture. Now, only 46 per
Jaitely had in the recent past too omy between the government’s favour of liberalisation expected the Source: Statistical Abstracts of inputs cent of direct agricultural finance is
made candid admissions of top ambitious goal of doubling farm- producers to plough back surplus less than 2 lakh, which means that
priority to be accorded to the agri- ers’ incomes and dismal ground from cultivation to make long-term
culture sector to ensure that gains realities. improvements in soil health and a
reach farmers and growth is visible sprout in agricultural productivity
in the farm sector. Background of agricultural and growth rate.
Anxious over its political for- distress The arguments that eco-
tunes in the aftermath of a narrow The deterioration in the health of nomic reforms would eliminate
victory in the Gujarat Assembly agriculture in our country has not bias against agriculture, thereby
elections, the Bhartiya Janta Party’s been sudden. It started during the improving the livelihood security
think-tank had swiftly incorporated post-liberalisation era and cul- of the rural poor, has remained an
a rural theme in its pre-budget dis- minated into utter distress, with unfulfilled dream. Belying the
cussions. The year 2018 is a dress expectations, these policies had a
rehearsal for the 2019 General class bias against small and mar-
Elections as three important states Farmer suicides ginal producers and the poor. Agri-
— Rajasthan, Madhya Pradesh culture sector started losing its sig-
and Karnataka — are heading for are reported nificance as an income-generating
assembly elections this year. from not only activity at a faster pace with the
The latest data from the Cen - onset of reforms. This can be cor-
tral Statistical Organisation (CSO) rain-deficit but roborated from the fact that the
reveals that the country’s economic growth rate of gross domestic prod-
growth is expected to be at 6.5 per also rain-fed and uct (GDP) of agriculture has been
cent, the lowest under the present irrigated areas declining whereas the growth rate
NDA government, mainly due to of GDP of our economy has been • Farming plans
slowdown in the agriculture sec- due to stagnation improving. (see box) The government
tor. The CSO has projected the farm in income and The share of public capital for- had vowed to give
and allied sector growth to slip to 2.1 mation in total capital formation top priority to
per cent in the current fiscal year escalating cost of in agriculture went down from 58 agriculture sector
from 4.9 per cent in the preceding inputs in farming per cent in 1981-82 to 21 per cent in
year. The slide in growth of agri- 2012-13, curtailing the availability of

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14-18 Budget.indd 2-3 12/02/18 3:35 PM