Enhance MSP, improve agricultural productivity: CIFA

The contribution of agriculture to gross domestic product (GDP) has remained constant in spite of increased productivity as prices of agricultural produce have either remained constant or reduced. 
For representation purposes (File Photo | EPS)
For representation purposes (File Photo | EPS)

HYDERABAD: In its pre-budget wishlist, the apex farmer’s body — the Consortium of Indian Farmers Associations (CIFA) — sought reduction in compensation cess rates on cigarettes, measures to improve agricultural productivity and enhancement of minimum support price (MSP), besides others.

To achieve the government’s twin goals of doubling farmer incomes by 2022 and $5-trillion economy by 2025, the CIFA said it was imperative to implement a stable long-term agricultural and rural policy.
“Today, agriculture is the only sector which has a net negative return on invest as the priority is to keep the inflation low resulting in farmers getting lower price for their produce,” said Bojja Dasaratha Rami Reddy, Secretary General, CIFA.

He added that tobacco farmers have been economically hit due to the discriminatory taxation rates on cigarettes.With regards to irrigation, CIFA said policy-makers should help improve water use efficiency, incentivise low-water intensity crop production in areas under canal irrigation to reduce water intensity crops cultivation, and provide live irrigation to rain-fed areas to improve output efficiencies to meet domestic demands and consequently sustain the agriculture sector.

According to Reddy, the current focus on agri-industrial complexes would only help the rich, while the small and the marginal farmers would be left behind, unless the policy addresses and focuses on small and medium-sized farmers.

To improve farmers’ income, the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) should focus on the unirrigated half of India’s cultivable land with initiatives such as setting up of a water dispute tribunal, instituting a long-term irrigation fund, he added.

Meanwhile, CIFA suggested that the MSP should be fixed at cost (actual cost + family labor + land lease cost) plus 50 per cent profit as recommended by the MS Swaminathan Committee.

The contribution of agriculture to gross domestic product (GDP) has remained constant in spite of increased productivity as prices of agricultural produce have either remained constant or reduced.  Thus, inflation needs to be a factor while determining the MSP, he noted. Also, the Commission for Agricultural Costs and Prices must be made autonomous with adequate representation of farmer’s organization. “An effective method of annually recording tenant farmers for each crop season must be documented for enabling data-supported equitable distribution of loans and subsidies,” Reddy explained.

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