Small farmers hit by multiple adversities: UP agri dept

Crop recasting, effective income security and a refocusing of the subsidy pattern to target small and marginal farmers are needed, went a presentation by the Uttar Pradesh agriculture department at the two-day national conference on rabi crops.

The presentation was the basis of a discussion on the agrarian problem facing the country.

Uttar Pradesh's two main crops, wheat and sugarcane, have been facing a variety of problems in recent months. The wheat crop suffered extensive damage due to hail and unseasonal rain, while cane farmers have not been paid the due price for years.

Officials said the presentation identified high input cost, high cost of labour, falling prices for produce, havoc caused by natural calamities and high requirement of cash as being the main reasons for rural distress.

“This has been compounded by collapse of soil health due to excessive use of chemicals and a falling water table,” a senior official said.

He said this was compounded by falling public investment in farming, low access to institutional credit for small farmers, rising indebtedness, low productivity, decline in net profit and unavailability of other means of income.

The consequence has been that the number of small and marginal farmers has risen sharply in the past few decades, while the income and consumption gaps have widened. From 2002-03 to 2012-13, average income rose 318 per cent, while total debt per house had risen 273 per cent. “Big land holders can easily access credit from institutions, while it is a dream for small and marginal farmers,” officials said.

They also pointed to the rising cost of agriculture production, not offset by the Minimum Support Price (MSP) offered by the government. In 2014-15, the average cost of production of wheat in UP was 1,474 a quintal, while the MSP was Rs 1,450 a qtl. The average wholesale price was Rs 1,473 a qtl.

Awareness of the MSP is low and in many cases, small farmers are not able to avail of these facilities. The UP presentation also said agricultural extension services had not kept pace with the changing times.