Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
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Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
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Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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        LATEST NEWS UPDATES | Stemming the tide of agrarian distress -Seema Bathla &amp; Ravi Kiran    </title>
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-The Hindu 

Rather than just increased budgetary outlays, farmers need plans that will rescue them from crop failure

Similar to the last two Budgets, this year&rsquo;s pro-agriculture intentions are palpable through increased outlays to the agricultural sector and initiation of various..."/>
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-The Hindu 

Rather than just increased budgetary outlays, farmers need plans that will rescue them from crop failure

Similar to the last two Budgets, this year&rsquo;s pro-agriculture intentions are palpable through increased outlays to the agricultural sector and initiation of various..." />
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                            <div align="justify">-The Hindu <br /><br /><em>Rather than just increased budgetary outlays, farmers need plans that will rescue them from crop failure<br /></em><br />Similar to the last two Budgets, this year&rsquo;s pro-agriculture intentions are palpable through increased outlays to the agricultural sector and initiation of various programmes. They seem impressive, but closer scrutiny shows that the measures may be of little help to stem the tide of agrarian distress. There are some real challenges confronting three laudable Budget announcements.<br /><br /><em>Three challenges<br /></em><br />The first is to raise the minimum support price (MSP) by at least 50% above the cost of production. The MSP will also be extended to all crops for which estimates on cost of cultivation and a remunerative price are to be ascertained. There are two pertinent issues here. One is to estimate the cost of production of commodities not covered under the scheme and their procurement procedures, if undertaken. Two, the production cost, as calculated by the Commission for Agricultural Costs and Prices, is based on three different methods, termed as A2, A2+FL, and C2. A2 covers all paid-out expenses, including in cash and in kind, namely, cost on account of seeds, chemicals, hired labour, irrigation, fertilizers and fuel. A2+FL covers actual paid cost and unpaid family labour. C2 includes all actual expenses in cash and kind incurred in production and rent paid for leased land, imputed value of family labour plus interest paid. In the last few years, the government has been giving MSP above 50% based on cost A2+FL, which is to be continued as per this Budget. But farmers, for many years, have been demanding that the raise in MSP be based on C2 instead. Also, little attention has been paid towards altering the ongoing &lsquo;high input cost and low output price&rsquo; regime. While a workable formula for fixing MSP in consonance with the States will take time, the government must extend immediate help to farmers from rampant price volatility. The States can implement the &lsquo;price deficiency payment scheme&rsquo; (difference between MSP and price received) as has been started in Haryana for some vegetables, and the Bhavantar Bhugtan Yojana in Madhya Pradesh for select oilseeds. These schemes can also encourage small holders, including tenants, who constitute at least 86% of farmers, to sell in the regulated markets.<br /><br />The second measure is to develop and upgrade the existing 22,000 rural haats into Gramin Agricultural Markets. A corpus of ?2,000 crore has been allocated in the name of the Agri-Market Infrastructure Fund for developing and upgrading marketing infrastructure. Despite the promising appearance, the real challenges are to ascertain the priority of the respective States towards it and ways to accelerate its pace. The latter can be taken forward through public-private partnership, which has worked successfully in other sectors. Under market reforms, it will also be important to link production centres with marketing through agri-value chains, which would require farmers to aggregate, form self-help groups, or farmer producer organisations. The hard truth is that farmers, especially small landholders in less developed States, sell their produce mainly through village traders or government-run Primary Agricultural Credit Societies (for wheat and paddy at MSP) and often get exploited. It is a daunting task, particularly in the event of a crash in commodity prices, to have some mechanism in place to avert distress (as mentioned in the case of Haryana and Madhya Pradesh). A hike in MSP should be supplemented with irrigation, and reduction in fertilizer cost. Another interrelated initiative is the launching of &lsquo;Operation Green&rsquo; with an outlay of ?500 crore to address the challenge of price volatility of perishable commodities. This again makes it necessary for State governments to bring various programmes under one roof, perhaps within the Agricultural Produce and Livestock Market Committee 2017, to help farmers.<br /><br />The third important step is to increase institutional credit from ?10 lakh crore in 2017-18 to ?11 lakh crore in 2018-19. The share of agricultural credit in gross domestic product in agriculture and allied activities has increased from 10% in 1999-2000 to 41% in 2015-16. The actual flow has considerably exceeded the target. Therefore, targeting of the announced allocation to the poorer farmers and tenants in each State will go a long way in improving their purchasing power and augmenting investment, which is currently low.<br /><br />Please <a href="http://www.thehindu.com/opinion/op-ed/stemming-the-tide-of-agrarian-distress/article22859916.ece" title="http://www.thehindu.com/opinion/op-ed/stemming-the-tide-of-agrarian-distress/article22859916.ece">click here</a> to read more. <br /></div>                                                           
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    <br><a href="http://www.thehindu.com/opinion/op-ed/stemming-the-tide-of-agrarian-distress/article22859916.ece" class="re" target="_blank">The Hindu, 27 February, 2018, http://www.thehindu.com/opinion/op-ed/stemming-the-tide-of-agrarian-distress/article22859916.ece</a><div class="clear"></div>
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Rather than just increased budgetary outlays, farmers need plans that will rescue them from crop failure

Similar to the last two Budgets, this year&rsquo;s pro-agriculture intentions are palpable through increased outlays to the agricultural sector and initiation of various..."/>
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Rather than just increased budgetary outlays, farmers need plans that will rescue them from crop failure

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    <h1 class="cat-box-title">Stemming the tide of agrarian distress -Seema Bathla &amp; Ravi Kiran</h1>
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                            <div align="justify">-The Hindu <br /><br /><em>Rather than just increased budgetary outlays, farmers need plans that will rescue them from crop failure<br /></em><br />Similar to the last two Budgets, this year&rsquo;s pro-agriculture intentions are palpable through increased outlays to the agricultural sector and initiation of various programmes. They seem impressive, but closer scrutiny shows that the measures may be of little help to stem the tide of agrarian distress. There are some real challenges confronting three laudable Budget announcements.<br /><br /><em>Three challenges<br /></em><br />The first is to raise the minimum support price (MSP) by at least 50% above the cost of production. The MSP will also be extended to all crops for which estimates on cost of cultivation and a remunerative price are to be ascertained. There are two pertinent issues here. One is to estimate the cost of production of commodities not covered under the scheme and their procurement procedures, if undertaken. Two, the production cost, as calculated by the Commission for Agricultural Costs and Prices, is based on three different methods, termed as A2, A2+FL, and C2. A2 covers all paid-out expenses, including in cash and in kind, namely, cost on account of seeds, chemicals, hired labour, irrigation, fertilizers and fuel. A2+FL covers actual paid cost and unpaid family labour. C2 includes all actual expenses in cash and kind incurred in production and rent paid for leased land, imputed value of family labour plus interest paid. In the last few years, the government has been giving MSP above 50% based on cost A2+FL, which is to be continued as per this Budget. But farmers, for many years, have been demanding that the raise in MSP be based on C2 instead. Also, little attention has been paid towards altering the ongoing &lsquo;high input cost and low output price&rsquo; regime. While a workable formula for fixing MSP in consonance with the States will take time, the government must extend immediate help to farmers from rampant price volatility. The States can implement the &lsquo;price deficiency payment scheme&rsquo; (difference between MSP and price received) as has been started in Haryana for some vegetables, and the Bhavantar Bhugtan Yojana in Madhya Pradesh for select oilseeds. These schemes can also encourage small holders, including tenants, who constitute at least 86% of farmers, to sell in the regulated markets.<br /><br />The second measure is to develop and upgrade the existing 22,000 rural haats into Gramin Agricultural Markets. A corpus of ?2,000 crore has been allocated in the name of the Agri-Market Infrastructure Fund for developing and upgrading marketing infrastructure. Despite the promising appearance, the real challenges are to ascertain the priority of the respective States towards it and ways to accelerate its pace. The latter can be taken forward through public-private partnership, which has worked successfully in other sectors. Under market reforms, it will also be important to link production centres with marketing through agri-value chains, which would require farmers to aggregate, form self-help groups, or farmer producer organisations. The hard truth is that farmers, especially small landholders in less developed States, sell their produce mainly through village traders or government-run Primary Agricultural Credit Societies (for wheat and paddy at MSP) and often get exploited. It is a daunting task, particularly in the event of a crash in commodity prices, to have some mechanism in place to avert distress (as mentioned in the case of Haryana and Madhya Pradesh). A hike in MSP should be supplemented with irrigation, and reduction in fertilizer cost. Another interrelated initiative is the launching of &lsquo;Operation Green&rsquo; with an outlay of ?500 crore to address the challenge of price volatility of perishable commodities. This again makes it necessary for State governments to bring various programmes under one roof, perhaps within the Agricultural Produce and Livestock Market Committee 2017, to help farmers.<br /><br />The third important step is to increase institutional credit from ?10 lakh crore in 2017-18 to ?11 lakh crore in 2018-19. The share of agricultural credit in gross domestic product in agriculture and allied activities has increased from 10% in 1999-2000 to 41% in 2015-16. The actual flow has considerably exceeded the target. Therefore, targeting of the announced allocation to the poorer farmers and tenants in each State will go a long way in improving their purchasing power and augmenting investment, which is currently low.<br /><br />Please <a href="http://www.thehindu.com/opinion/op-ed/stemming-the-tide-of-agrarian-distress/article22859916.ece" title="http://www.thehindu.com/opinion/op-ed/stemming-the-tide-of-agrarian-distress/article22859916.ece">click here</a> to read more. <br /></div>                                                           
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    <br><a href="http://www.thehindu.com/opinion/op-ed/stemming-the-tide-of-agrarian-distress/article22859916.ece" class="re" target="_blank">The Hindu, 27 February, 2018, http://www.thehindu.com/opinion/op-ed/stemming-the-tide-of-agrarian-distress/article22859916.ece</a><div class="clear"></div>
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Rather than just increased budgetary outlays, farmers need plans that will rescue them from crop failure

Similar to the last two Budgets, this year&rsquo;s pro-agriculture intentions are palpable through increased outlays to the agricultural sector and initiation of various..."/>
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                            <div align="justify">-The Hindu <br /><br /><em>Rather than just increased budgetary outlays, farmers need plans that will rescue them from crop failure<br /></em><br />Similar to the last two Budgets, this year&rsquo;s pro-agriculture intentions are palpable through increased outlays to the agricultural sector and initiation of various programmes. They seem impressive, but closer scrutiny shows that the measures may be of little help to stem the tide of agrarian distress. There are some real challenges confronting three laudable Budget announcements.<br /><br /><em>Three challenges<br /></em><br />The first is to raise the minimum support price (MSP) by at least 50% above the cost of production. The MSP will also be extended to all crops for which estimates on cost of cultivation and a remunerative price are to be ascertained. There are two pertinent issues here. One is to estimate the cost of production of commodities not covered under the scheme and their procurement procedures, if undertaken. Two, the production cost, as calculated by the Commission for Agricultural Costs and Prices, is based on three different methods, termed as A2, A2+FL, and C2. A2 covers all paid-out expenses, including in cash and in kind, namely, cost on account of seeds, chemicals, hired labour, irrigation, fertilizers and fuel. A2+FL covers actual paid cost and unpaid family labour. C2 includes all actual expenses in cash and kind incurred in production and rent paid for leased land, imputed value of family labour plus interest paid. In the last few years, the government has been giving MSP above 50% based on cost A2+FL, which is to be continued as per this Budget. But farmers, for many years, have been demanding that the raise in MSP be based on C2 instead. Also, little attention has been paid towards altering the ongoing &lsquo;high input cost and low output price&rsquo; regime. While a workable formula for fixing MSP in consonance with the States will take time, the government must extend immediate help to farmers from rampant price volatility. The States can implement the &lsquo;price deficiency payment scheme&rsquo; (difference between MSP and price received) as has been started in Haryana for some vegetables, and the Bhavantar Bhugtan Yojana in Madhya Pradesh for select oilseeds. These schemes can also encourage small holders, including tenants, who constitute at least 86% of farmers, to sell in the regulated markets.<br /><br />The second measure is to develop and upgrade the existing 22,000 rural haats into Gramin Agricultural Markets. A corpus of ?2,000 crore has been allocated in the name of the Agri-Market Infrastructure Fund for developing and upgrading marketing infrastructure. Despite the promising appearance, the real challenges are to ascertain the priority of the respective States towards it and ways to accelerate its pace. The latter can be taken forward through public-private partnership, which has worked successfully in other sectors. Under market reforms, it will also be important to link production centres with marketing through agri-value chains, which would require farmers to aggregate, form self-help groups, or farmer producer organisations. The hard truth is that farmers, especially small landholders in less developed States, sell their produce mainly through village traders or government-run Primary Agricultural Credit Societies (for wheat and paddy at MSP) and often get exploited. It is a daunting task, particularly in the event of a crash in commodity prices, to have some mechanism in place to avert distress (as mentioned in the case of Haryana and Madhya Pradesh). A hike in MSP should be supplemented with irrigation, and reduction in fertilizer cost. Another interrelated initiative is the launching of &lsquo;Operation Green&rsquo; with an outlay of ?500 crore to address the challenge of price volatility of perishable commodities. This again makes it necessary for State governments to bring various programmes under one roof, perhaps within the Agricultural Produce and Livestock Market Committee 2017, to help farmers.<br /><br />The third important step is to increase institutional credit from ?10 lakh crore in 2017-18 to ?11 lakh crore in 2018-19. The share of agricultural credit in gross domestic product in agriculture and allied activities has increased from 10% in 1999-2000 to 41% in 2015-16. The actual flow has considerably exceeded the target. Therefore, targeting of the announced allocation to the poorer farmers and tenants in each State will go a long way in improving their purchasing power and augmenting investment, which is currently low.<br /><br />Please <a href="http://www.thehindu.com/opinion/op-ed/stemming-the-tide-of-agrarian-distress/article22859916.ece" title="http://www.thehindu.com/opinion/op-ed/stemming-the-tide-of-agrarian-distress/article22859916.ece">click here</a> to read more. <br /></div>                                                           
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    <br><a href="http://www.thehindu.com/opinion/op-ed/stemming-the-tide-of-agrarian-distress/article22859916.ece" class="re" target="_blank">The Hindu, 27 February, 2018, http://www.thehindu.com/opinion/op-ed/stemming-the-tide-of-agrarian-distress/article22859916.ece</a><div class="clear"></div>
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Home हिन्दी

Stemming the tide of agrarian distress -Seema Bathla & Ravi Kiran

Published on Feb 28, 2018   Modified on Feb 28, 2018

-The Hindu Rather than just increased budgetary outlays, farmers need plans that will rescue them from crop failure Similar to the last two Budgets, this year’s pro-agriculture intentions are palpable through increased outlays to the agricultural sector and initiation of various programmes. They seem impressive, but closer scrutiny shows that the measures may be of little help to stem the tide of agrarian distress. There are some real challenges confronting three laudable Budget announcements. Three challenges The first is to raise the minimum support price (MSP) by at least 50% above the cost of production. The MSP will also be extended to all crops for which estimates on cost of cultivation and a remunerative price are to be ascertained. There are two pertinent issues here. One is to estimate the cost of production of commodities not covered under the scheme and their procurement procedures, if undertaken. Two, the production cost, as calculated by the Commission for Agricultural Costs and Prices, is based on three different methods, termed as A2, A2+FL, and C2. A2 covers all paid-out expenses, including in cash and in kind, namely, cost on account of seeds, chemicals, hired labour, irrigation, fertilizers and fuel. A2+FL covers actual paid cost and unpaid family labour. C2 includes all actual expenses in cash and kind incurred in production and rent paid for leased land, imputed value of family labour plus interest paid. In the last few years, the government has been giving MSP above 50% based on cost A2+FL, which is to be continued as per this Budget. But farmers, for many years, have been demanding that the raise in MSP be based on C2 instead. Also, little attention has been paid towards altering the ongoing ‘high input cost and low output price’ regime. While a workable formula for fixing MSP in consonance with the States will take time, the government must extend immediate help to farmers from rampant price volatility. The States can implement the ‘price deficiency payment scheme’ (difference between MSP and price received) as has been started in Haryana for some vegetables, and the Bhavantar Bhugtan Yojana in Madhya Pradesh for select oilseeds. These schemes can also encourage small holders, including tenants, who constitute at least 86% of farmers, to sell in the regulated markets. The second measure is to develop and upgrade the existing 22,000 rural haats into Gramin Agricultural Markets. A corpus of ?2,000 crore has been allocated in the name of the Agri-Market Infrastructure Fund for developing and upgrading marketing infrastructure. Despite the promising appearance, the real challenges are to ascertain the priority of the respective States towards it and ways to accelerate its pace. The latter can be taken forward through public-private partnership, which has worked successfully in other sectors. Under market reforms, it will also be important to link production centres with marketing through agri-value chains, which would require farmers to aggregate, form self-help groups, or farmer producer organisations. The hard truth is that farmers, especially small landholders in less developed States, sell their produce mainly through village traders or government-run Primary Agricultural Credit Societies (for wheat and paddy at MSP) and often get exploited. It is a daunting task, particularly in the event of a crash in commodity prices, to have some mechanism in place to avert distress (as mentioned in the case of Haryana and Madhya Pradesh). A hike in MSP should be supplemented with irrigation, and reduction in fertilizer cost. Another interrelated initiative is the launching of ‘Operation Green’ with an outlay of ?500 crore to address the challenge of price volatility of perishable commodities. This again makes it necessary for State governments to bring various programmes under one roof, perhaps within the Agricultural Produce and Livestock Market Committee 2017, to help farmers. The third important step is to increase institutional credit from ?10 lakh crore in 2017-18 to ?11 lakh crore in 2018-19. The share of agricultural credit in gross domestic product in agriculture and allied activities has increased from 10% in 1999-2000 to 41% in 2015-16. The actual flow has considerably exceeded the target. Therefore, targeting of the announced allocation to the poorer farmers and tenants in each State will go a long way in improving their purchasing power and augmenting investment, which is currently low. Please click here to read more.

The Hindu, 27 February, 2018, http://www.thehindu.com/opinion/op-ed/stemming-the-tide-of-agrarian-distress/article22859916.ece

Tagged with: Farm Loans Farmers' Income minimum support price Minimum Support Prices agrarian crisis

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