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Interviews | Ramesh Chand, Member, NITI Aayog speaks to Mahendra Kumar Singh & Surojit Gupta </title>
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Ramesh Chand has spent over three decades in farm research and teaching agricultural economics and policy. He has now been appointed as a key member of the NITI Aayog to prepare a blueprint for the revival of..."/>
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Ramesh Chand has spent over three decades in farm research and teaching agricultural economics and policy. He has now been appointed as a key member of the NITI Aayog to prepare a blueprint for the revival of..." />
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<h1 class="cat-box-title">Ramesh Chand, Member, NITI Aayog speaks to Mahendra Kumar Singh & Surojit Gupta</h1>
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Published on</span><span class="text-date"> Jan 1, 2016</span>
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<div align="justify">-The Times of India<br /><br />Ramesh Chand has spent over three decades in farm research and teaching agricultural economics and policy. He has now been appointed as a key member of the NITI Aayog to prepare a blueprint for the revival of the agricultural sector. In an interview to TOI, Chand talks about prices, rural distress, role of cutting edge technology and the need for state run institutions in the farm sector. Excerpts:<br /><br /><em>* What is the strategy to revive agriculture?<br /></em><br />The fortunes of the agriculture sector are cyclical. But the recent slowdown which followed 7-8 years of good growth has been further aggravated by two successive years of adverse monsoon rains. The rabi crop was hit by excessive rainfall. That further pulled down agri growth. This time despite low output, prices are also depressed. It's a double whammy for farmers. That is why you hear stories of agrarian distress. We have looked at a number of factors which can revive growth. One of them is good quality seeds. Another is fertiliser. And the third is in the area of prices.<br /><br /><em>* What about prices for the farmer?<br /></em><br />It does not always have to be through government support. We have serious problems with marketing. Markets are not only inefficient, their inefficiencies are rising. In some markets cartels are operating. I am a strong supporter of increased private sector participation in agriculture marketing. Under normal circumstances, the market should take care. That is not happening. One reason is that because of APMC Act (Agricultural Produce Market Committee) there are so many restrictions.<br /><br /><em>* Why is it that there has been no reform of APMC?<br /></em><br />States are not doing it. This is the problem. Central government has been trying to do it for the last 12 years. I would say traders' lobbies are opposed to reform of the APMC.<br /><br /><em>* What is the medium-term solution for developing agriculture markets?<br /></em><br />One is to expand the national common market gradually. Hopefully states should come on board.<br /><br /><em>* What is the solution for tackling the problem of pulses?<br /></em><br />Higher minimum support price alone is not a solution. If you can assure the farmer that you will get a reasonable price, he may put area under pulses. It may make some difference. But it will lead to very little increase in productivity. Prices help in harnessing potential created by technology, prices do not create potential by themselves. This synergy between prices and technology is very essential.<br /><br /><em>* What are we doing on technology for improving productivity?<br /></em><br />There will be a lot of emphasis on public research and development and even on private sector. Many people are against GM technologies but my position is that in critical areas where we are not able to find success through conventional technology we should not shy away from trying it. In ICAR, the best brains are being applied to increasing productivity of rice and wheat. They need to re-prioritise their research portfolio and put more people on pulses.<br /><br /><em>* What about onions?<br /></em><br />Pulses is a problem of deficiency, onions is a problem of management. No other crop has the kind of growth rate that onion has. We are asking ICAR and state agriculture universities to provide seeds for onions. Yes cartels are at work. I wrote a book where I said there are clear cases of market manipulation.<br /><br /><em>* How do you break these cartels?<br /></em><br />We have to go in for some sort of public sector intervention. We have to build some kind of storage structure in the public sector. Our public agencies maybe inefficient, but they are needed in these kinds of situations.<br /><br /><em>* How do you reform FCI?<br /></em><br />We need the public sector. A country like India needs institutions like the FCI. The inefficiencies can be addressed. FCI could say that we do not have autonomy. Inefficiency of FCI is partly operational and partly related to policy.<br /><br /><em>* Should private sector be allowed in some of the functions?<br /></em><br />Of course they should be. There are problems with FCI but they are not of FCI alone. I am a strong supporter of the presence of public institutions in important food items for safeguarding the interest of consumers. Imagine if the problems of onions were to happen to wheat and rice? We have had two consecutive droughts in many parts of the country but we are still comfortable. There is need to reform FCI but we should not take the extreme step of closing down FCI or even think of dismantling such an organisation. Why don't you allow FCI to procure from newly emerging surplus states such as Bihar? They need autonomy and their management should be in the hands of professionals rather than bureaucrats.<br /><br /><em>* There is fear of food inflation coming back. What is your view on this?<br /></em><br />I have been taking this position in G-20. Some kind of food inflation is good and we should accept it. If there is no food inflation there is no incentive for the farmer to raise production. But that inflation should be in farm harvest prices not in retail and wholesale prices alone. Some inflation in the farm harvest prices acts as a great incentive for producers. Only if it goes beyond a certain level one should feel concerned. </div><div align="justify"> </div><div align="justify"><em>The Times of India, 1 January, 2016, please <a href="http://timesofindia.indiatimes.com/india/Higher-MSP-wont-solve-pulses-problems-says-NITI-Aayogs-Ramesh-Chand/articleshow/50401413.cms" title="http://timesofindia.indiatimes.com/india/Higher-MSP-wont-solve-pulses-problems-says-NITI-Aayogs-Ramesh-Chand/articleshow/50401413.cms">click here</a> to access </em></div><div align="justify"> </div><div align="justify"><strong>Image Courtesy: The Hindu Business Line</strong> <br /></div>
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<br><a href="http://timesofindia.indiatimes.com/india/Higher-MSP-wont-solve-pulses-problems-says-NITI-Aayogs-Ramesh-Chand/articleshow/50401413.cms" class="re" target="_blank">The Times of India, 1 January, 2016, http://timesofindia.indiatimes.com/india/Higher-MSP-wont-solve-pulses-problems-says-NITI-Aayogs-Ramesh-Chand/articleshow/50401413.cms</a><div class="clear"></div>
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Interviews | Ramesh Chand, Member, NITI Aayog speaks to Mahendra Kumar Singh & Surojit Gupta </title>
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<h1 class="cat-box-title">Ramesh Chand, Member, NITI Aayog speaks to Mahendra Kumar Singh & Surojit Gupta</h1>
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<div align="justify">-The Times of India<br /><br />Ramesh Chand has spent over three decades in farm research and teaching agricultural economics and policy. He has now been appointed as a key member of the NITI Aayog to prepare a blueprint for the revival of the agricultural sector. In an interview to TOI, Chand talks about prices, rural distress, role of cutting edge technology and the need for state run institutions in the farm sector. Excerpts:<br /><br /><em>* What is the strategy to revive agriculture?<br /></em><br />The fortunes of the agriculture sector are cyclical. But the recent slowdown which followed 7-8 years of good growth has been further aggravated by two successive years of adverse monsoon rains. The rabi crop was hit by excessive rainfall. That further pulled down agri growth. This time despite low output, prices are also depressed. It's a double whammy for farmers. That is why you hear stories of agrarian distress. We have looked at a number of factors which can revive growth. One of them is good quality seeds. Another is fertiliser. And the third is in the area of prices.<br /><br /><em>* What about prices for the farmer?<br /></em><br />It does not always have to be through government support. We have serious problems with marketing. Markets are not only inefficient, their inefficiencies are rising. In some markets cartels are operating. I am a strong supporter of increased private sector participation in agriculture marketing. Under normal circumstances, the market should take care. That is not happening. One reason is that because of APMC Act (Agricultural Produce Market Committee) there are so many restrictions.<br /><br /><em>* Why is it that there has been no reform of APMC?<br /></em><br />States are not doing it. This is the problem. Central government has been trying to do it for the last 12 years. I would say traders' lobbies are opposed to reform of the APMC.<br /><br /><em>* What is the medium-term solution for developing agriculture markets?<br /></em><br />One is to expand the national common market gradually. Hopefully states should come on board.<br /><br /><em>* What is the solution for tackling the problem of pulses?<br /></em><br />Higher minimum support price alone is not a solution. If you can assure the farmer that you will get a reasonable price, he may put area under pulses. It may make some difference. But it will lead to very little increase in productivity. Prices help in harnessing potential created by technology, prices do not create potential by themselves. This synergy between prices and technology is very essential.<br /><br /><em>* What are we doing on technology for improving productivity?<br /></em><br />There will be a lot of emphasis on public research and development and even on private sector. Many people are against GM technologies but my position is that in critical areas where we are not able to find success through conventional technology we should not shy away from trying it. In ICAR, the best brains are being applied to increasing productivity of rice and wheat. They need to re-prioritise their research portfolio and put more people on pulses.<br /><br /><em>* What about onions?<br /></em><br />Pulses is a problem of deficiency, onions is a problem of management. No other crop has the kind of growth rate that onion has. We are asking ICAR and state agriculture universities to provide seeds for onions. Yes cartels are at work. I wrote a book where I said there are clear cases of market manipulation.<br /><br /><em>* How do you break these cartels?<br /></em><br />We have to go in for some sort of public sector intervention. We have to build some kind of storage structure in the public sector. Our public agencies maybe inefficient, but they are needed in these kinds of situations.<br /><br /><em>* How do you reform FCI?<br /></em><br />We need the public sector. A country like India needs institutions like the FCI. The inefficiencies can be addressed. FCI could say that we do not have autonomy. Inefficiency of FCI is partly operational and partly related to policy.<br /><br /><em>* Should private sector be allowed in some of the functions?<br /></em><br />Of course they should be. There are problems with FCI but they are not of FCI alone. I am a strong supporter of the presence of public institutions in important food items for safeguarding the interest of consumers. Imagine if the problems of onions were to happen to wheat and rice? We have had two consecutive droughts in many parts of the country but we are still comfortable. There is need to reform FCI but we should not take the extreme step of closing down FCI or even think of dismantling such an organisation. Why don't you allow FCI to procure from newly emerging surplus states such as Bihar? They need autonomy and their management should be in the hands of professionals rather than bureaucrats.<br /><br /><em>* There is fear of food inflation coming back. What is your view on this?<br /></em><br />I have been taking this position in G-20. Some kind of food inflation is good and we should accept it. If there is no food inflation there is no incentive for the farmer to raise production. But that inflation should be in farm harvest prices not in retail and wholesale prices alone. Some inflation in the farm harvest prices acts as a great incentive for producers. Only if it goes beyond a certain level one should feel concerned. </div><div align="justify"> </div><div align="justify"><em>The Times of India, 1 January, 2016, please <a href="http://timesofindia.indiatimes.com/india/Higher-MSP-wont-solve-pulses-problems-says-NITI-Aayogs-Ramesh-Chand/articleshow/50401413.cms" title="http://timesofindia.indiatimes.com/india/Higher-MSP-wont-solve-pulses-problems-says-NITI-Aayogs-Ramesh-Chand/articleshow/50401413.cms">click here</a> to access </em></div><div align="justify"> </div><div align="justify"><strong>Image Courtesy: The Hindu Business Line</strong> <br /></div>
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<br><a href="http://timesofindia.indiatimes.com/india/Higher-MSP-wont-solve-pulses-problems-says-NITI-Aayogs-Ramesh-Chand/articleshow/50401413.cms" class="re" target="_blank">The Times of India, 1 January, 2016, http://timesofindia.indiatimes.com/india/Higher-MSP-wont-solve-pulses-problems-says-NITI-Aayogs-Ramesh-Chand/articleshow/50401413.cms</a><div class="clear"></div>
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Interviews | Ramesh Chand, Member, NITI Aayog speaks to Mahendra Kumar Singh & Surojit Gupta </title>
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Ramesh Chand has spent over three decades in farm research and teaching agricultural economics and policy. He has now been appointed as a key member of the NITI Aayog to prepare a blueprint for the revival of..."/>
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-The Times of India
Ramesh Chand has spent over three decades in farm research and teaching agricultural economics and policy. He has now been appointed as a key member of the NITI Aayog to prepare a blueprint for the revival of..." />
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<h1 class="cat-box-title">Ramesh Chand, Member, NITI Aayog speaks to Mahendra Kumar Singh & Surojit Gupta</h1>
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<div align="justify">-The Times of India<br /><br />Ramesh Chand has spent over three decades in farm research and teaching agricultural economics and policy. He has now been appointed as a key member of the NITI Aayog to prepare a blueprint for the revival of the agricultural sector. In an interview to TOI, Chand talks about prices, rural distress, role of cutting edge technology and the need for state run institutions in the farm sector. Excerpts:<br /><br /><em>* What is the strategy to revive agriculture?<br /></em><br />The fortunes of the agriculture sector are cyclical. But the recent slowdown which followed 7-8 years of good growth has been further aggravated by two successive years of adverse monsoon rains. The rabi crop was hit by excessive rainfall. That further pulled down agri growth. This time despite low output, prices are also depressed. It's a double whammy for farmers. That is why you hear stories of agrarian distress. We have looked at a number of factors which can revive growth. One of them is good quality seeds. Another is fertiliser. And the third is in the area of prices.<br /><br /><em>* What about prices for the farmer?<br /></em><br />It does not always have to be through government support. We have serious problems with marketing. Markets are not only inefficient, their inefficiencies are rising. In some markets cartels are operating. I am a strong supporter of increased private sector participation in agriculture marketing. Under normal circumstances, the market should take care. That is not happening. One reason is that because of APMC Act (Agricultural Produce Market Committee) there are so many restrictions.<br /><br /><em>* Why is it that there has been no reform of APMC?<br /></em><br />States are not doing it. This is the problem. Central government has been trying to do it for the last 12 years. I would say traders' lobbies are opposed to reform of the APMC.<br /><br /><em>* What is the medium-term solution for developing agriculture markets?<br /></em><br />One is to expand the national common market gradually. Hopefully states should come on board.<br /><br /><em>* What is the solution for tackling the problem of pulses?<br /></em><br />Higher minimum support price alone is not a solution. If you can assure the farmer that you will get a reasonable price, he may put area under pulses. It may make some difference. But it will lead to very little increase in productivity. Prices help in harnessing potential created by technology, prices do not create potential by themselves. This synergy between prices and technology is very essential.<br /><br /><em>* What are we doing on technology for improving productivity?<br /></em><br />There will be a lot of emphasis on public research and development and even on private sector. Many people are against GM technologies but my position is that in critical areas where we are not able to find success through conventional technology we should not shy away from trying it. In ICAR, the best brains are being applied to increasing productivity of rice and wheat. They need to re-prioritise their research portfolio and put more people on pulses.<br /><br /><em>* What about onions?<br /></em><br />Pulses is a problem of deficiency, onions is a problem of management. No other crop has the kind of growth rate that onion has. We are asking ICAR and state agriculture universities to provide seeds for onions. Yes cartels are at work. I wrote a book where I said there are clear cases of market manipulation.<br /><br /><em>* How do you break these cartels?<br /></em><br />We have to go in for some sort of public sector intervention. We have to build some kind of storage structure in the public sector. Our public agencies maybe inefficient, but they are needed in these kinds of situations.<br /><br /><em>* How do you reform FCI?<br /></em><br />We need the public sector. A country like India needs institutions like the FCI. The inefficiencies can be addressed. FCI could say that we do not have autonomy. Inefficiency of FCI is partly operational and partly related to policy.<br /><br /><em>* Should private sector be allowed in some of the functions?<br /></em><br />Of course they should be. There are problems with FCI but they are not of FCI alone. I am a strong supporter of the presence of public institutions in important food items for safeguarding the interest of consumers. Imagine if the problems of onions were to happen to wheat and rice? We have had two consecutive droughts in many parts of the country but we are still comfortable. There is need to reform FCI but we should not take the extreme step of closing down FCI or even think of dismantling such an organisation. Why don't you allow FCI to procure from newly emerging surplus states such as Bihar? They need autonomy and their management should be in the hands of professionals rather than bureaucrats.<br /><br /><em>* There is fear of food inflation coming back. What is your view on this?<br /></em><br />I have been taking this position in G-20. Some kind of food inflation is good and we should accept it. If there is no food inflation there is no incentive for the farmer to raise production. But that inflation should be in farm harvest prices not in retail and wholesale prices alone. Some inflation in the farm harvest prices acts as a great incentive for producers. Only if it goes beyond a certain level one should feel concerned. </div><div align="justify"> </div><div align="justify"><em>The Times of India, 1 January, 2016, please <a href="http://timesofindia.indiatimes.com/india/Higher-MSP-wont-solve-pulses-problems-says-NITI-Aayogs-Ramesh-Chand/articleshow/50401413.cms" title="http://timesofindia.indiatimes.com/india/Higher-MSP-wont-solve-pulses-problems-says-NITI-Aayogs-Ramesh-Chand/articleshow/50401413.cms">click here</a> to access </em></div><div align="justify"> </div><div align="justify"><strong>Image Courtesy: The Hindu Business Line</strong> <br /></div>
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<br><a href="http://timesofindia.indiatimes.com/india/Higher-MSP-wont-solve-pulses-problems-says-NITI-Aayogs-Ramesh-Chand/articleshow/50401413.cms" class="re" target="_blank">The Times of India, 1 January, 2016, http://timesofindia.indiatimes.com/india/Higher-MSP-wont-solve-pulses-problems-says-NITI-Aayogs-Ramesh-Chand/articleshow/50401413.cms</a><div class="clear"></div>
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Interviews | Ramesh Chand, Member, NITI Aayog speaks to Mahendra Kumar Singh & Surojit Gupta
Ramesh Chand, Member, NITI Aayog speaks to Mahendra Kumar Singh & Surojit Gupta
Published on Jan 1, 2016
Modified on Jan 1, 2016
-The Times of India
Ramesh Chand has spent over three decades in farm research and teaching agricultural economics and policy. He has now been appointed as a key member of the NITI Aayog to prepare a blueprint for the revival of the agricultural sector. In an interview to TOI, Chand talks about prices, rural distress, role of cutting edge technology and the need for state run institutions in the farm sector. Excerpts:
* What is the strategy to revive agriculture?
The fortunes of the agriculture sector are cyclical. But the recent slowdown which followed 7-8 years of good growth has been further aggravated by two successive years of adverse monsoon rains. The rabi crop was hit by excessive rainfall. That further pulled down agri growth. This time despite low output, prices are also depressed. It's a double whammy for farmers. That is why you hear stories of agrarian distress. We have looked at a number of factors which can revive growth. One of them is good quality seeds. Another is fertiliser. And the third is in the area of prices.
* What about prices for the farmer?
It does not always have to be through government support. We have serious problems with marketing. Markets are not only inefficient, their inefficiencies are rising. In some markets cartels are operating. I am a strong supporter of increased private sector participation in agriculture marketing. Under normal circumstances, the market should take care. That is not happening. One reason is that because of APMC Act (Agricultural Produce Market Committee) there are so many restrictions.
* Why is it that there has been no reform of APMC?
States are not doing it. This is the problem. Central government has been trying to do it for the last 12 years. I would say traders' lobbies are opposed to reform of the APMC.
* What is the medium-term solution for developing agriculture markets?
One is to expand the national common market gradually. Hopefully states should come on board.
* What is the solution for tackling the problem of pulses?
Higher minimum support price alone is not a solution. If you can assure the farmer that you will get a reasonable price, he may put area under pulses. It may make some difference. But it will lead to very little increase in productivity. Prices help in harnessing potential created by technology, prices do not create potential by themselves. This synergy between prices and technology is very essential.
* What are we doing on technology for improving productivity?
There will be a lot of emphasis on public research and development and even on private sector. Many people are against GM technologies but my position is that in critical areas where we are not able to find success through conventional technology we should not shy away from trying it. In ICAR, the best brains are being applied to increasing productivity of rice and wheat. They need to re-prioritise their research portfolio and put more people on pulses.
* What about onions?
Pulses is a problem of deficiency, onions is a problem of management. No other crop has the kind of growth rate that onion has. We are asking ICAR and state agriculture universities to provide seeds for onions. Yes cartels are at work. I wrote a book where I said there are clear cases of market manipulation.
* How do you break these cartels?
We have to go in for some sort of public sector intervention. We have to build some kind of storage structure in the public sector. Our public agencies maybe inefficient, but they are needed in these kinds of situations.
* How do you reform FCI?
We need the public sector. A country like India needs institutions like the FCI. The inefficiencies can be addressed. FCI could say that we do not have autonomy. Inefficiency of FCI is partly operational and partly related to policy.
* Should private sector be allowed in some of the functions?
Of course they should be. There are problems with FCI but they are not of FCI alone. I am a strong supporter of the presence of public institutions in important food items for safeguarding the interest of consumers. Imagine if the problems of onions were to happen to wheat and rice? We have had two consecutive droughts in many parts of the country but we are still comfortable. There is need to reform FCI but we should not take the extreme step of closing down FCI or even think of dismantling such an organisation. Why don't you allow FCI to procure from newly emerging surplus states such as Bihar? They need autonomy and their management should be in the hands of professionals rather than bureaucrats.
* There is fear of food inflation coming back. What is your view on this?
I have been taking this position in G-20. Some kind of food inflation is good and we should accept it. If there is no food inflation there is no incentive for the farmer to raise production. But that inflation should be in farm harvest prices not in retail and wholesale prices alone. Some inflation in the farm harvest prices acts as a great incentive for producers. Only if it goes beyond a certain level one should feel concerned.
The Times of India, 1 January, 2016, please click here to access
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