April 07, 2014

Farmers: The focus of agricultural development

Samprati Motghare
IIM graduate, Batch of 2014


With a constant impetus on increasing the production of food grains, West Bengal has always been a leader when it comes to production of India’s staple food - rice. It contributes about 16% of the total rice production in the country. The state achieved cereal production of 173 lakh tons in 2013-14 as compared to 148 lakh tons in 2010-11. All these facts hint at a prosperous farmer class in the state – a far cry from the ground reality which existed till the year 2011. The reason was a lack of focus towards the demand-centric production strategy, which consequently led to farmers ending up with lesser money, despite putting in great endeavours in the fields.


Situation till February 2012

Coarse grain paddy (MTU 7029, IR 36, IR 64) were promoted for cultivation because of its higher productivity. Farmers also felt that if they are able to grow more, they will be able to earn more. However, the planners, till then, had forgotten the basic principle of economics, i.e. income from a produce depends on its demand in the market. As more people were shifting to finer grain rice for consumption, there were few takers of the coarse grain rice in the state. This simply meant that despite being the leader in rice production, West Bengal was essentially importing rice for its consumption. The price which was being offered to farmers was Rs. 950 per Quintal which was far less than their production costs.


Crucial steps taken by the government

To tackle the pressing problem of low prices being offered to farmers, the West Bengal government took some urgent steps.

Persuaded Food Corporation of India to stop import of rice for PDS
Rice of all varieties was put on Open General License (allowed to export)
32 Lakh metric tons of paddy was procured for PDS at Rs. 1,080/Quintal and money was paid through A/C payee cheques
Exporters were encouraged and helped to pick up coarse grain, resulting in export of 11 Lakh metric tons to 61 countries.


Strategic turnaround

As a strategic measure, farmers were encouraged to grow finer and aromatic rice on additional 8,000 hectares by replacing the coarse grain. Also, in areas yielding less than 2 metric tons/hectare of coarse grain, farmers were encouraged to grow pulses, oil seeds and maize with all the support being extended by the government. The results of the above steps have brought smiles back on the faces of farmers. As compared to the price of Rs. 950-1000 per Quintal that they would sell ‘at farm’ for coarse grain till 2012, they are now selling at a price of Rs. 1330-1350 per Quintal. This increase is much more significant in case of Mini Kit and Khas (Gobindo Bhog) varieties which has seen an increase from Rs 1,200 per Quintal to Rs 1,640-1,700 per Quintal (for Mini Kit), and from Rs. 2,150 per Quintal to Rs. 3,200 per Quintal (for Khas), respectively.


A detailed understanding of these facts and the work carried out at the grass-root level, only further strengthens the Chief Minister’s belief that no development is development until it brings happiness to the farmers.