THE government’s efforts are now focused on controlling food shortage, checking inflation by eliminating market imperfections and curbing hoarding and smuggling. Will these steps resolve the problem food security, ignoring the factors that lead to low productivity which is the main cause of food shortage and inflation?

Agriculture is the backbone of the economy. Farmers are the most important segment of this agrarian society which plays a vital role in the economy. It provides 45 per cent of the total employment, food for the entire population and raw materials for industry. Improvement in social and economic conditions of this segment can usher in better productivity of crops. Their incomes need to rise so that a part of savings can be invested in modernization of farming.

A random study conducted on the economic condition of some hundred farmers revealed that saving from crop income of 56 of them was zero. The rest of the farmers that is 44 per cent said they could save on an average Rs30,000 per year from the income of their crop which they paid to suppliers of inputs like seeds, fertiliser etc.

Most farmers (76 per cent) said they borrowed money from input suppliers for purchase of necessary agricultural inputs at higher rates on condition to sell their products only to the lenders. As a result, investment per hectare remains low leading to low production. This process continues and most of the farmers are trapped in vicious circle of poverty. Analysis of the data depicts that 98 per cent of farmers wanted to use fertilisers but due to shortage of funds they could not.

Other factors like natural calamities, no access to media and system of weather forecast, lack of market information, unaffordable cost of technology, costly farm inputs and poor know-how about latest production-raising techniques, health expenditures on both human beings and livestock, death of agro-supporting animals and land tenure/owned systems affect production of crops. This leads to rise in poverty among farmers which varies significantly between rural and urban areas. There is a continuous transfer of resources from rural to urban areas which needs to be reversed by moderating cost of agriculture inputs and agricultural credits.

All these lead to reduction in output, where as consumption remains constant throughout the year leading to inflation and food shortages. Government actions to control the market situation may be necessary but it alone will not be enough, as the current inflation seems not only due to markets’ faulty structure, but also because of short supply due to low productivity on account of increase in the prices of agricultural inputs. Therefore, an integrated policy is needed to keep the prices of inputs within the reach of farmers.

If provision of food items at low prices, which is considered the basic element of development objective, is obligatory, efforts to improve efficiency of agricultural production and increase the average yield per hectare should be the priority of government policy. It will be possible only with reduction in the costs of inputs and with the provision of facilities to farmers’ community.

The following suggestions can help increase the level of farm production:

Price support no doubt play a vital role in boosting production but at the same time it also leads to inflation, as mostly crops are basic inputs for industries. Permanent solution is to give subsidy on basic inputs necessary for cultivation.

There is a need to enlarge the cultivation area which at present stands at 40.76 million acres while the same is the figure for barren land. Virgin lands can be brought under plough by building smalldams and water reservoirs. Steps should be taken to bring barren area under cultivation. In this respect, small portions of land can be given to peasants. This will not only reduce poverty of the farmers but also help in overcoming food shortage and inflation.

Hoarding and smuggling should be curbed so that provision of food can be made possible at normal rate. The present market system works against the interests of the growers and fuels food inflation. The system needs to be revamped.

Heavy rain, storm, fog and flood have severe devastating effect on crops. Most of the farmers do not have an access to weather forecast. They should be provided with basic information and should be warned about the weather with repeated broadcast and telecast so that they may take precautionary measures.

Officials of the agriculture department should advise farmers on how to reduce production cost and increase output.

The agriculture bank should provide sufficient loan to farmers with holdings below 12 acres at minimum interest rate. At present only a small amount of credit is allowed to farmers which are hardly enough to cultivate even two to three acres.

Farmers associations can play an important role in arranging credits for farmers. Latest technologies like laser leveler, tractors, thresher etc., which are basic tools for cultivation, are unaffordable for small farmers.

They should be provided with these tools at subsidised rates and on easy installments or on rent by private or public sector organisations.

Steps should be taken to provide technical education including use of various farm equipment and machinery to farmers to improve their skill in farming for boosting agricultural output.