Letters: Credit for supply chains

This refers to the editorial “Big loopholes in farm credit” (November 14). All agricultural issues are being sought to be resolved through credit subvention, but that is not a long-term solution. The small farmer faces a host of issues, including input costs that have multiplied, high cost of fertilisers, monsoon and markets. His land is snatched away by developers, and his son’s education is now costlier with privatisation. Medicines are unaffordable, too.

Even the National Commission on Farmers had stated in its report that “the Indian farmer is in deep distress”. What needs to be changed is financing of the entire agri-supply chain. At present, that supports crop production only. Credit needs of pre- and post-production activities should be paid attention, too. There are credit needs for harvesting, grading, transport, storage (pledge finance is done in a limited way) and processing. Thus, financing the entire agri-supply chain should be part of direct agriculture and priority sector finance by banks.

 

Another critical issue is lack of information — agri-extension by public providers is often weak. Some innovations have come in through mobile-based information delivery, but it is relatively low in reach. In this context, farmer clubs supported by Nabard are good options for credit-counselling and financial education needs in rural hinterlands.

B S Suran Mumbai

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