Written by Ashok Gulati , Gayathri Mohan
First, permit us compliment both the parties inward Maharashtra’s agrarian crisis for reaching an amicable solution, at to the lowest degree for the fourth dimension being, in addition to averting major chaos or violence. Farmers deserve appreciation for their disciplined, committed, non-violent “Long March”, in addition to the Devendra Fadnavis regime (GoM) deserves praise for gracefully accepting most of their nous demands. Second, volition the loan waiver or the MSP inward draw amongst the Swaminathan formula of cost addition l per cent — 2 of the nous farmers’ demands that stimulate got been accepted — solve Maharashtra’s agriculture problems? Certainly not. The electrical flow understanding volition render solely temporary relief to the state’s farmers. Much to a greater extent than needs to live on done to ensure that they prosper inward a sustainable manner.
What is the nous campaign of the crisis? Since the Fadnavis regime assumed usage inward Oct 2014, Maharashtra has had 3 years of negative agri-GDP growth. Only inward 2016-2017 did the state’s agriculture sector grow yesteryear 22.5 per cent. It registered (-)10 per cent inward 2014-15, (-)3.2 per cent inward 2015-16, in addition to is probable to live on (-)8.3 per cent this year, equally per the state government’s estimates. The state’s average agri-GDP growth inward the 4 years is zero. This is the rootage campaign of the farm distress inward the state. Except for sugarcane farmers, cultivators of most other crops stimulate got suffered badly. Cotton, for example, was struck yesteryear a pinkish bollworm laid on that destroyed 44 per cent of the crop. Market prices of soyabean, tur, chana went agency below their MSPs, in addition to the MSP of sorghum did non encompass the total cost of the crop’s production. This speaks of astute distress, almost akin to an agriculture emergency, inward certainly pockets of the state. The state regime has tried to render a healing touch, but that has non been enough.
Sarfaraz Alam
Sarfaraz Alam Efforts to larn agriculture dorsum on rail inward Maharashtra volition stimulate got to re-align cropping patterns amongst the state’s H2O resources. Only xix per cent of Maharashtra’s cropped expanse is nether irrigation, agency below the national average of 47 per cent. So, expanding the irrigation encompass should live on the state’s priority. The paradox of the agriculture scenario inward Maharashtra is that sugarcane, which occupies only 4 per cent of the state’s gross cropped expanse (GCA), takes away 65 per cent of the irrigation water, patch cotton, soyabean, sorghum, maize, gram in addition to tur, which together flora to a greater extent than than lx per cent of the GCA, larn near 8 per cent of the irrigation H2O (see graph). Unless this imbalance is corrected, the crisis volition resurface whenever Maharashtra faces a drought. Compulsory drip irrigation inward sugarcane, which may cost the state regime near Rs 7,000 crore, tin salve near one-half of the irrigation water, which if diverted to cotton, sorghum, maize or soyabean, tin improve productivity significantly. And much of this tin live on done inside 2 years at most, inward a mission mode.
Maharashtra too boasts the largest set out of dams in addition to major in addition to medium irrigation schemes. During the tenth in addition to 11th Five Year Plans (2002-2003 to 2011-2012), the cumulative expenditure on these schemes amounted to Rs 1,18,235 crore at 2014-15 prices. It increased the irrigation potential of the state yesteryear solely 8.9 lakh hectares (ha) of which solely 5.9 lakh ha was utilised during that period. This amounts to a cost of around Rs xx lakh/ha of irrigation potential utilised at 2014-15 prices. This is nada curt of a scam. Without increasing transparency in addition to meliorate governance, major canal irrigation schemes are an exorbitant proposition.
Solar-based drip irrigation is a meliorate option in addition to solar facilities tin set surplus ability dorsum into the grid at xv per cent premium over coal-based ability supplies. Besides improving irrigation in addition to augmenting yields, solar facilities volition give farmers regular assured income in addition to volition live on an insurance during droughts. Such schemes tin live on financed yesteryear either the somebody sector or through long-term loans from multilateral agencies.
The loan waiver was already agreed to concluding twelvemonth in addition to the electrical flow tweaking could enhance the before estimated cost of Rs 34,000 crore to near Rs 40,000 crore. According to the Maharashtra government, solely near Rs 11,000 crore of loans has been settled till Dec 2017. One doubts whether the remaining loan waiver tin live on done inward the side yesteryear side half dozen months.
However, the biggest gaffe is the Maharashtra government’s contention near accepting the MSP based on the Swaminathan formula. The MSP pricing is done yesteryear the Centre. And the Centre is talking of cost A2+FL (paid out costs addition imputed work solid unit of measurement labour cost) in addition to non comprehensive cost, C2, the existent bane. In whatever case, if Maharashtra is actually giving cost C2 addition l per cent equally MSP, it volition stimulate got to enhance the MSP of sorghum yesteryear to a greater extent than than nine per cent, of cotton fiber yesteryear near lx per cent in addition to groundnut, soyabean in addition to maize yesteryear near forty per cent. That volition live on an invitation for disaster inward the markets. Even at 1.5 times the cost A2+FL, the MSP of sorghum needs to become upwardly yesteryear to a greater extent than than forty per cent in addition to that of cotton fiber yesteryear near xx per cent. Can Maharashtra create it? Only fourth dimension volition tell.
Wisdom lies inward thinking clearly before taking the plunge. No cost-based pricing, live on it C2 or A2+FL, tin live on successful inward a marketplace seat economic scheme if it does non await at the demand side. It volition solely Pb to major distortions leading to huge efficiency losses. Influenza A virus subtype H5N1 to a greater extent than efficient, transparent in addition to equitable pick volition live on to give straight income back upwardly on a per hectare reason to the farmers.
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