When the government is stirred to act energetically, it is usually to impose a ban on "hoarding" whichever food stuff where price hikes have hit the headlines - onions usually, or pulses more recently. But these knee-jerk reactions amount to tampering with market mechanisms and make things worse rather than better. The need for cold storage, or for increasing onion dehydration capacity, to solve the perennial shortage of onions has been suggested every year, only to be forgotten till the next episode of eye-watering prices. The emergency decision to import certain kinds of lentils was so low relative to the scale of the demand for pulses in India as to once again beg the question of whether the government was serious about solving the problem.
Instead of short-term responses, the Centre and the states need to dramatically increase funding for agricultural research and agricultural universities to develop better seeds and fertilisers, including varieties better able to thrive in the face of water shortages. Average landholdings are a mere 1.15 hectares - but this is all the more reason for urgent action. Drip feed irrigation is also a priority as the water paucity crisis unfolds daily. Agricultural growth is limping along at about two per cent - some experts predict it might actually slip further this year - while the rest of the economy is growing at more than seven per cent. This disparity in prospects does not bode well when agriculture still employs more than half the population. As a recent series of reports in this newspaper showed, the crisis now extends from supposedly rich agrarian states like Punjab - where the whitefly, abetted by an unusually extended hot weather period, has wreaked havoc on cotton farmers - to rubber farmers in Kerala, who have been clobbered by a collapse in prices. The limits of short-term responses to forces as unyielding as climate change and embedded low productivity on India's small farms have been on display all this year. It is time for the government to act.
