Docstoc

Slide 1 - Indianfarmers

Document Sample
Slide 1 - Indianfarmers Powered By Docstoc
					N EGLECT OF AGRICULTUR E IN INDIA AFTER L IBERL IZATION
                    Presentation by
       P. Chengal Reddy, Secretary General CIFA
              Columbia University, U.S.A.
                   15th October 2008,




       Consortium of Indian Farmers Associations, (CIFA)
       8/32, South Patel Nagar, New Delhi – 110008
       Ph: 91- 11- 25842111, 24505048, Fax; 91- 11- 25842123
       Email: cifa_delhi@yahoo.com
               www.Indianfarmers.org
                                                                       1
                          P. Chengal Reddy, Secretary General - CIFA
1. Decelerating trends in         Period           1980-81         85-86 1990-91     1995-96   2000-
                                                   to 84-85        to 89- to 94-95   to    99- 2001 to
Agriculture since Reforms                                          90                2000      2004-
1990’s                                                                                         05
• The share of Agriculture        Compou 3.86                      4.08   3.57       2.96      2.03
GDP declined from 55% in          nd avg
1950s to 18% in 2007-08.
                                  growth
• The share of the services
sector has increased
                                  rate
dramatically to 56%. Such
changes in output shares were
not accompanied b y
commensurate changes in the
distribution of the workforce.
• The gap between the incomes
of agricultural workers and
non-agricultural workers
widened from 1.8 in 1951-52 to
5.2 in 2032-04.
• Agricultural growth slackened
continuously by half from 4%
during 1985-86/89 to 2.03%
during 2000 – 01/2004 -05
                              P.Chengal Reddy, Secretary General - CIFA                          2
                                      1985-90 1993-94          95-96      97-98    2000-01   2004-05
2. Expenditure on                     Average                                                RE
Rural
development         Rural             11.1       8.4           6.9        6.4      5.8       6.2
                    Development
declined sharply    plus
by half during      infrastructure
1990s
3. There has been                              1949 – 50 to                       1967-68 to            1991 – 92 to
slowing of output                                1964 -65                          2002-03               2006 - 07
and yield growth    Food grains
since 1991.         Production        2.8                                 2.3                          1.0
                    Yields            1.4                                 2.1                          1.1
•The period since   All Crops
1991 marked in time Production        3.2                                 2.7                          1.3
when growth in      Yields            1.2                                 1.9                          1.2
Indian agriculture
was arrested.




                                                                                                                 3
                                     P.Chengal Reddy, Secretary General - CIFA
4. Fragmentation of                                                      •Percentage of Operational Holdings
                         •       (Figures in brackets indicate distribution of operating area by holding size)
holdings :
                         Holding category                    1960-61          2002-03
• There is significant
increase in the share    Marginal(less than 1 H 39.1                          69.8 (22.2)
of holdings in the       a)
smallest category, and   Small(1-2 H a)         22.6                          16.1 (20.6)
a definite decline in
the share of holdings    Semi-medium       19.8                               9.0 (20.4)
of larger size.
                         (2-4 H a)
                         Medium (4-10 H a) 14.0                               4.3 (22.7)

                         Large(10 H a             4.5            0.8 (12.1)
                         and above)
                         All categories           100            100
                         Source: “Some aspects of operational and holdings in India
                         2002-03” NSS Report No.492. entry for 2002-03 is the
                         average of figures for the Kharif and Rabi crops.



                              P.Chengal Reddy, Secretary General - CIFA                                  4
5. Distribution of Operated       Holding                                 1960-61   2002-03
Area by Holding Size              Category
                                  Marginal(less than 1 H a)               6.9       22.2
                                  Small(1-2 H a)                          12.3      20.6
                                  Semi-medium(2-4 H a)                    20.7      22.4

                                  Medium(4-10 H a)                        31.2      22.7
                                  Large(10H a and above)                  29.0      12.1
                                  All categories                          100       100
                                  Source: 'Some aspects of operational land holdings in
                                  India 2002-03', NSS Report No. 492. Entry for 2002-
                                  03 is the average of figures for the kharif and rabi
                                  crops




                              P.Chengal Reddy, Secretary General - CIFA                    5
6. Reduction in Agriculture                                     (Rs. croes – at 1999-2000 Constant & Prices )
Investment from 1990’s        Year            Public sector Private sector
                              198 0-8 1       12,521            14.929
                              1990-91         7,882             27,691
                              2002-03         7,962             38,861
                              2004-05         10,267            38,309
                              Source: National Accounts statistics 2007, GOI
                                    Period              1980-81           1990-91           96-97 to
                                                           to                to              03-04
                                                         90-91             96-97
                              Public sector net 3.86                      1.92         1.42
                              fixed capital
                              stock




                              P.Chengal Reddy, Secretary General - CIFA                                         6
7. Increase in Irrigation        Public Expenditure on Irrigation and Flood
Expenditure: -                                    Control
                             Period                               W PI ( Base        Real expenditure
                                                                  (1993-94=100)      1993-94 prices
• N on Involvement of
farmers
                             Seventh Plan 1985-90                 58.5               28,349

                             Eighth Plan 1992-97                  110.7              28,354
                             Ninth Plan1997-2002                  147.2              43,817
                             Tenth Plan2002-07                    186.3              55,450


8. Slow down in irrigated    Trend                                Rate               In Area
area – since 1990’s                                                                  (% peryear
                             Period                               1990-91         to 96-97 to
Inefficient Govenence                                             96-97              03-04
                             Gross irrigated area                 2.62               0.51




                            P.Chengal Reddy, Secretary General - CIFA                                   7
9. Decline in Agriculture,
Research expenditure :

• Funding of publicly-
provided 'research and
extension' expenditure has
not kept pace with the             Public Expenditure on Research and Extension as Share of
increasing need for such                                       Agricultural GDP
support.                                                                                (Per cent)

10. Extension Neglected : -               Year                 Research &          Extension &
                                                                 education            training
 Decline in investments in        1960s                      6.5                  10.7
extensions since 1990’s           1970s                      9.5                  0.00
                                  1980s                      6.3                  7.0
                                  1990-2005                  4.8                  2.0




                                                                                               8
                              P.Chengal Reddy, Secretary General - CIFA
11. Reduction in                                                            (Rs. In crores – Accounts ‘ 000’s)
credit to small            Year   Rs          And          %        Rs25000 Above      Agri Cultur %
                                  25,000      below        shar     to    Rs Rs      2 No.of e          share
farmers : -
                                  A/Cs        Amoun        e        2lakh    lakh % a/c s Amou
• Growth of credit                            t                     % share share              nt
to agriculture was         1996   23141       14253        49.5     25.4     25.1      2418 28808 11
only 12 per cent                                                                       8
during 1986-87 to          2001   16428       16931        32.7     33.3     34.0      1984 51730 9
1994-95 as against                                                                     3
target of 18%.             2006   17802       22979        13.3     31.4     55.3      2906 172684 11
                                                                                       8
•The small and marginal
                           b) Decline in loans to farmers with Rs.25,000 and less.
farm holdings account
for 42% of agricultural    Decline by 1/ 3 rd , (33% ) over 92 – 93
land;                      No. of year A/C in Lakhs
• but the share of small
and marginal farmers
                           1992 – 93 267
was only 21% in the        2005 – 06 178
total advances to          Decline in Long term Loans in Agriculture (%)
agriculture at end                          1991           1996         2005        2006   2007
                           Year
March 2007.                                 76             51           41          35     40
• The share of small       Percentage
loans of Rs 25,000 and     (%)
below reduced to13         Increase indirect Loans - thus reducing direct finance by 10
from 49 % in 1996.         percentage points.
• The share of big loans
                           Year             2001           2007
increased from 25% to
55%.                       Percentage       16             26
                           (%)
                                                                                                          9
                                        P.Chengal Reddy, Secretary General - CIFA
c) Neglect of Artisans and Craftsman
1975 - 80                            80-90                        90 - 00   2000 -05
27.4 %                               21 %                         2.3 %     14
d) Declining Rural Credit / Deposit Ration
Year                             Rural C/D
                                 Ratio % )
1990 – 91                        60.00%
2000 – 01                        39.00%
2004-05                          49.00%




                             P.Chengal Reddy, Secretary General - CIFA                 10
12. Suicides by farmers-Anaslysis : -
•    76 % of the victims were dependent on rain-fed agriculture
•    78 % w as small and marginal farmers.
•    76 to 82 % have borrowed from non-institutional sources
    interest @ 24 to 36 %.

13. Conclusion : - Major causes for deceleration of Agriculture
•    Stagnant public investment for almost a quarter of a century,
    slowing of irrigation expansion since 1991, downscaling of
    production due to farm fragmentation and down trend in
    investment credit & credit flow to small farmers, decrease in
    growth of direct agriculture loans and increase in indirect loans
    cutting into quantum of direct credit.

•   Inefficiency in Governance and leakages in implementation.


                         P.Chengal Reddy, Secretary General - CIFA   11
   14. NEGLECT OF SMALL                  FARMERS DURING REFORMS
• Diluting the objective of credit to priority sectors.
• 1985 directive - Banks to extend Agri credit to an extent of 40% of net
  bank credit.
• Change of Direction in 1993 - only direct finance for agriculture should
  be considered as a part of the priority sector target of 18% Agriculture &
  Allied.
• 1993, Direct & Indirect finance have been considered as Priority Sector –
  only direct finance for agriculture should be reckoned.
• Corporate, Partnership firms and Institutions in included.
• Loans under the category “Other types of Indirect Finance. 5 6 % in
  1999 increased to 7 6 % in 2006 .
• Changes brought in RB I credit policy 2008 – 09
• Major expansion of loans with a credit limit of more than Rs. 10 crore, and
  particularly, more than Rs. 25 crore.
• 7 5 % decline in the share in amount of small Agriculture
  2003 - 2 3 . .6 0%, 2006 - 1 3. 3 0%
• Agri advances of Rs. 1crore and above increased by a whopping 400%

                          P.Chengal Reddy, Secretary General - CIFA         12
        15. Farmers’ unfriendly steps by GOI
•   Ban of Export of Rice
•   Ban of Private Trade in Wheat Market
•   Ban of Commodity Trading.
•   Non Implementation of N. C. F of Dr. M.S. Swaminathan
•   (October 200 6. )
•   Non Implementation of Arjun Sen Gupta Commission
    Recommendations
•   Non Implementation M.P’ report Agriculture Standing Committee
•   Implementation of 6th pay Commission with in 4 months.
•   1990 – 2006 – reduction of rural Bank B ranches 35134 to 30572
•   Indebtedness of farmers of Andhra Pradesh – 82% -
    Tamilnadu – 75 % - Punjab – 65 %.


                         P.Chengal Reddy, Secretary General - CIFA   13
         16. ACTION PROGRAMME

• Focus on small farmers and Dry Land Farming

• Increase public investment in Agriculture, storage and
  marketing facilities

• Increase irrigated land

• Improve Agri R&D and Extension services

• Provide Bank Loans up to 18% of Bank Credit

• Fix remunerative M.S.P as per recommendations of N.C. F.

• Remove Trade and Other Controls / Regulations
                         P.Chengal Reddy, Secretary General - CIFA   14
P.Chengal Reddy, Secretary General - CIFA   15

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:4
posted:3/2/2010
language:English
pages:15