You are here: Home » Economy & Policy » News
Business Standard

BS Agri Round Table: GST, note ban helped trace agriculture income flow

Investments are soon going to flow in agriculture, says Agricultural Secretary S.K Pattnayak

Indivjal Dhasmana & Jyoti Mukul  |  New Delhi 

BS Round Table
(From left) Dhanuka Agritech Chairman R G Agarwal, NITI Aayog Chairman for Social Cell Tajmul Haque, Agriculture Secretary S K Pattanayak, former Crop Science deputy director general J S Sandhu, NCCD chief advisor and CEO Pawanexh Kohli at Business Standard Agriculture Round Table, 2017, in New Delhi on Tuesday | Photo: Dalip Kumar

Prime Minister Narendra Modi’s target of doubling farmers’ income in six years is achievable, provided and practices are modified, according to senior government officials and experts.
 
Speaking at the Business Standard Round Table, 2017, Secretary S K Pattanayak said on Tuesday that 55 per cent of farmland was dependent on the monsoon and that the strategy to double the farmers’ income had to be different here compared to the land that was irrigated well.

 
Quoting a study by the Food and Organisation (FAO), he said irrigation alone could improve farm productivity by 2.5 times. In this respect, he said about 30 projects of the total 99 under the would be completed soon. The remaining ones will be completed in the next two-three years, he said. “This will add 7.6 million hectare of land under irrigation,” he said.

 
Pattanayak said farmers’ income could increase 30 per cent by facilitating market access, for which amendments to the APMC Act were must.
 
While the Centre had brought in the model Act, it was up to states to follow that, he said, adding that while Punjab had amended the Act, would soon do that. Similarly, has removed fruits and vegetables from the Act.
 
He said margins were not as high in as in other sectors of the economy. However, as the supply chain moved to the urban centres, it made sense to make investments here. “Investments are soon going to flow in agriculture,” he added.
 
Talking about the huge difference in the prices that get and what the customers pay, the secretary said the government was laying focus on producers organisations (FPOs). Pawanexh Kohli, chief advisor and CEO of NCCD, said while had been clubbed under FPOs, land was still fragmented. “We should have clubbed land too,” he suggested.
 
Tajmul Haque, chairman of the social cell at NITI Aayog, said one should be clear about doubling of farmers’ income. For instance, he said average monthly income of a farmer’s family stood at Rs 6,427 in India. On the other hand, Bihar, Odisha, and Jharkhand had average monthly farmer’s family income of less than Rs 5,000. Punjab, on the other hand, has Rs 18,000.
 
He said coordination was needed between price policy and technology policies to double the farmers’ income. Whatever minimum support prices were announced should be implemented on the ground, he suggested.  Pattanayak said the country now had decentralised procurement. Procurement was now improving beyond Punjab and Haryana, he said. “procured a lot of wheat and potatoes,” he said.
 
Besides, the government had built two million tonnes of pulses buffer stocks. He said pulses production rose from 17 million tonnes in 2015-16 to 22 mt in 2016-17.
 
Pattanayak said the goods and services tax (GST) and digitalisation had helped in knowing the flow of income.
 
His comments came after the Union Cabinet earlier in the day cleared raising of minimum support price for the rabi crop that would be harvested in the winter. The MSP of wheat was raised by Rs 110 to Rs 1,735 a quintal and of pulses by Rs 200 a quintal to help boost the output of these crops and check prices.
 
Pattanayak emphasised the need to diversify not just in but also animal husbandry to supplement income. “have a choice to move from traditional crops to high value crops and animal husbandry.”
 
Interestingly, the secretary also pitched for animal protein to tackle the issue of malnutrition in India.
 
J S Sandhu, former DDG, Crop Science, said while there was little scope of area expansion, quality seeds can increase farmers’ income. He said traditional crops such as cereals, oilseeds and pulses were grown on 77 per cent land, but these contributed to 40 per cent of farmers’ income. However, high value crops were cultivated on 19 per cent land and they contributed as much as traditional ones. Sandhu said, “We have not exploited There is a scope in exploiting it.”
 
R G Agarwal, chairman, Dhanuka Agritech, said got less income but consumers had to pay higher prices due to the middlemen. He also ridiculed the whereby export of onions was banned when prices were increased.

First Published: Wed, October 25 2017. 02:22 IST
RECOMMENDED FOR YOU