Tuesday, January 16, 2018

Dinesh Kamath's Editorial 'The government should solve farmers’ problems' that was published in Newsband

The government should solve farmers’ problems
The government should address the problem of severe price fluctuations. We had enough of boom and bust in the prices of agricultural goods. The government should solve the problems of many distressed farmers.
The government comes up with fiscal measures such as farm loan waivers, a higher minimum support price for farm produce, or some combination of the two. The next Union budget may well be focussed on the rural economy through fiscal measures. Such relief measures temporarily ease the pain on farmers, but not in the long run.
In the absence of a robust market for buying and selling forward-looking contracts, farmers are left to fend for themselves against severe fluctuations. The domination of the wholesale market by cartels prevents farmers from receiving a fair price. The real issue exist in the transportation of goods and foul play of market middle men. In some remote places the production is heavy whereas the majority of consumers are available at metro cities where vegetables are sold at a high price but the producers are not getting the actual benefits.
Government should make new policies for agricultural sector because the old system is not able to provide any good support to the farmers and most importantly they should give the fair prices to the farmers directly without any middlemen.
The farmers sell it at such a cheap price still the consumers buy it at a very steep price. The middlemen have taken the place of government to manipulate and 'govern' the market prices of essential commodities. Minimum Support Price, is implemented many a times for short term gains and remedies, and sometimes for political gains too. When people try to respond to the issues faced by them, the voices go unheard.
Continuous failure on the part of government to improve structural and infrastructural status of agriculture in the country have led many farmers to go to the extent of ending their lives. The agricultural distress of farmers due to high fluctuation in prices of crops has been a recurring phenomenon, arising chiefly due to an unstructured supply chain and the absence of a stable market. Merely taking ad hoc fiscal measures such as increasing the minimum support price would not be efficacious in the long term, it is therefore imperative to completely overhaul the supply chain management using big data and artificial intelligence so that the mismatch between supply and demand is reduced and farmers receive a fair price for what they grow.
It is ironical that India reels from food insecurity and still allows a bulk of its produce to rot on the roads. It is high time government embrace technology driven inventory and supply chain management so as to avoid this pitiable situation in future.
Agriculture is a key sector that has lot of employment potential as well as revenue generation. A pragmatic policy towards farmers is essential to uplift the sector and boost its prospects

The annual cycle of plentitude and shortage is really a vicious one. Even while the surplus production remains, the advantage never comes to the consumer. This paradox exposes some market aberrations. The foul play in this market riddle is the handiwork of unscrupulous middle men. The corrective initiatives should take these things also into consideration.

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