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Rejuvenating Agriculture in Karnataka:

Challenges and Options

S. Subramanya

Secretary ( udget ! Resources"

#overnment o$ Karnataka


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Phasing of the

presentation%art &. Agriculture deceleration and crisis

%art '. rom Sel$ Reliant arming Systems to )*ternali+ed arming

Systems

%art ,. -hat should be the objective o$ rejuvenation o$ Agriculture

%art /. S-O0 analysis o$ Agriculture system

%art 1. 2o3 do 3e overcome the 3eaknesses and utilise the

opportunities $or rejuvenating agriculture


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Phases of Agricultural Development

in India Phase 1 1951 to 1967

Dominated by extensive agriculture

!eforms in the form of land grant and landreforms

Phase " 1967 to 1999 Productivity enhancement measures

through green revolution technologies

Phase # 1999 till no$ Attempted liberali%ation of agriculture


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&urrent state of our agriculture'

Deceleration ( !ecent trends indicate that

though the performance ofthe )arnata*a +tate,seconomy in terms of gro$th

in -ross +tate DomesticProduct .-+DP/ hasimproved0 gro$th inagriculture has not beenvery satisfactory

he deceleration in

Agriculture has been rightlyrecogni%ed as the root causeof rural distress that hassurfaced in )arnata*a as$ell as in many parts of thecountry

0

10000

20000

30000

40000

50000

60000

70000

80000

99-00 00-01 2001-02 2002-03 2003-04 2004-05 2005-06

Agriculture

secondary sector

tertary sector

#ross State 4omestic %roduct at

constant prices


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&urrent crisis in farming families

There seems to be an all er!ading crisis in "arming "amilies# $o% "arm incomes due to inade&uate roducti!ity gro%th and lo%

rices "or the "arm outut ha!e ushed "armers to criling debt' a"e% among them un"ortunately resorted to suicide#

(n!estments in creating irrigation otential' ro!iding imro!edinuts and ro!isioning o" credit has contributed to increase inroducti!ity# )ut roducti!ity increase has not contributedareciably "or imro!ing the &uality o" li"e o" "arming community#(t has not enhanced the con"idence o" "arming "amilies#

The crisis in "arming sector is not urely a distributional onearising out o" small land holdings# The %hole "arming sectorirresecti!e o" the si*e o" holding is a""ected#


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&ontextual importance of agriculture Agriculture can be seen in t$o

contexts 2irstly0 as a system for improving the

production of agricultural commoditiesfor providing food security

+econdly as a system contributing to theincome of farming families and therebycontributing to improvements in the3uality of living of farming communities


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-ro$th pattern of agricultural production

in )arnata*a

+arnata,a agriculture gre% at

an a!erage rate o" 4#4 er cent

during the "irst hal" o" 1980s

1980-85.' but then deceleratedsharly in the latter hal"#

(n the beginning o" 1990s'

although it ic,ed u

marginally' it %as "ar "rom being

a dynamic and !ibrant sector#

/rom 2000 on%ards agricultural

roduction !aried enormously

on account o" drought#

0

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91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 2001-

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2002-

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2003-

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2004-

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2005-

06

2006-

07

Total food grain production in Karnataka

from 91-92 to 06-07


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Production 4olatility in

agriculture ur agriculture by and

large is still dependent onrainfall and determinesthe production

Dry land technology anddrought resistantcultivars indeed have nothelped appreciably toovercome the problem

arising out of drought +o$n area data indicates

that farmers have notstopped farming

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80100

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9 1 - 9 2

9 2 - 9 3

9 3 - 9 4

9 4 - 9 5

9 5 - 9 6

9 6 - 9 7

9 7 - 9 8

9 8 - 9 9

9 9 - 0 0

0 0 - 0 1

2 0 0 1 - 0 2

2 0 0 2 - 0 3

2 0 0 3 - 0 4

2 0 0 4 - 0 5

2 0 0 5 - 0 6

2 0 0 6 - 0 7

yield in la,h tons

so%n area in la,h ha

Sown area and yield

relation of food grain

production


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Impact of production of price of

agricultural commodities

change in inde "or agricultural commodities in +arnata,a

-8

-6

-4

-2

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93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 2001-

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2ood commodities aredemand inelasticcommodities igherproduction is often

associated $ith pricecrash

igher productivity manynot mean higher income tofarming families

Drought poses investmentris* etter productivity isoften associated $ith pricecrash

8here are incentives tothe farmer to contribute tohigher productivity(

%roduction in lakh tons

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93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 2001-

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2002-

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2004-

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2005-

06


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%art '.rom Sel$ Reliant arming Systems to

)*ternali+ed arming Systems:

Population gro$th and intermittent droughtscaused very serious famines in India in the past

2aced $ith the severe food decits the countryembar*ed on a ne$ food grain productionstrategy0 :-reen !evolution; $hich introduced

signicant changes in farming practices


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Sel$ Reliant arming System o$ the past

(n the ast "arming %as basically a "amily ursuit#

(t %as a sel"-contained system %ith inuts li,e seeds coming

"rom re!ious har!est and manure "rom "arm and animal %aste#

$abor' as an inut' %as largely contributed "rom "amilymembers#

roduction %as basically "or the consumtion o" the "amily and

surlus %as reser!ed "or lean years# ery little o" agricultural

roduce %as mar,eted#

(ndeed cash %as not re&uired "or "arming oerations in the ast#

Thus' "arming system could be titled as ubstance /arming#

%ith !ery little disosable surlus o" "ood grains#


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2rom +elf !eliant farming to


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8ho gained and $ho lost on account ofchange from +elf !eliant farming to


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Distinct classes of farmers

(n the ost >reen ?e!olution eriod' the "arming community'too' has e!ol!ed into t%o distinctly di""erent entities# a small segment o" outgoing' !enture-some and enterrising

"armers caitali*ing the emerging oortunities@ The (ndian /armer' a large ma=ority o" in%ard loo,ing' resource oor and con"ormist

"armers =ust see,ing their security o" li!elihoods@ The +isan#

hile the "irst grou is able to &uic,ly a!ail the economicincenti!es ro!ided' the later seems to be grouing in acon"used %orld to "ind a direction in their e""orts#

hen isolated success story o" the "irst grou is re!ealed inseminars' interaction sessions ' a "e% try to emulate and a largema=ority sigh in desair# The anguish gets e3ressed in many

"orms#


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Part #8hat should be the ob=ective of

re=uvenation of Agriculture(


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orts made to re=uvenate agriculture +arnata,a agriculture %as guided by the ational olicy till 1996# (t

did hel to increase yield substantially "rom 1976 to 1987# tagnationset in a"ter 1986#

;oncerned by the stagnation o" roduction during late eighties

go!ernment constituted a committee under the ;hairmanshi o" ri#atishchandran "or understanding the reasons "or oor gro%th o" Agriculture and "or suggesting remedial action#

+arnata,a Agriculture olicy %as ronounced in 1996 on the basis o"recommendations o" the abo!e committee# Bost o" the measuressuggested circled around yield enhancement inter!entions'

ro!isioning o" inuts' credit e3tension and modi"ication o" thee3tension measures# Ba=ority o" the olicy measures ha!e beenimlemented#

Cur agriculture olicy %as re!isited in 2006 and a e% Agriculturalolicy has been adoted by the state#


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Possible ob=ectives of !e=uvenation

2ood security It is felt that if agriculture continues to be stagnant

the country $ill face food crisis 2ood imports may

have to be resortedence !e=uvenate agriculture

Increasing income of farmers 2armers are not getting good income and their

incomes can be raised by increasing the

productivity and diversication of crops o up*eep the gro$th $itnessed in

secondary and tertiary sector

ne is against the other?


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!e3uired policy shift &hange of priority from food +elf

+u@ciency concerns to raising

income of farming community Providing safety net to the farming

communities


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Part +8 analysis of Agriculture system


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+trengths of our

agriculture uge mano%er already engaged in agriculture# (lliteracy in the "arming community is no longer seen as

a de!eloment constraint# ;lear title on land and %ater# >ood ublic sector research "acility and net%or,# ystem o" ban,s and ;ooerati!es to ro!ide credit# Ability o" domestic mar,et to absorb domestic

roduction# A reali%ation that Agrarian sector is lagging

behind and something must be done to impartgro$th


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8ea*nesses Agriculture seen as a system "or "ood sel"-su""iciency alone# hrin,ing $and-man ratio#


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pportunities Dnormous coe "or di!ersi"ication "rom a system "or "ood

roduction to a system "or ro!iding energy#

Time to align agriculture as a system to meet e3isting demand

instead o" a mere "ood roduction system# ?aid gro%th o" secondary and tertiary sectors#

>lobali*ation o" agriculture#

Dn!ironment conduci!e to suort ri!ate in!estments in "aming

A gro%ing reali*ation that agriculture and "arming communities

need better suort#


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hreats roduction crash Bar,et "ailure and rice crash

hort term changes in demand "or agriculturalcommodities a""ecting long-term actions#

$ac, o" clarity about legal system tosa"eguard interests o" "armers and other

sta,eholders including in!estors# (? rights and ri!ate research# TC and (nternational agreements


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Part 5o$ do $e overcome the $ea*nesses and utilise

the opportunities for re=uvenating agriculture(


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Ceasures re3uired for

re=uvenation ofagriculture Productivity improvements of food

crops

Diversication of food crops Diversication to$ards non food

crops Ceasures to ensure sustainability of

cropping systems Providing security net to the farming

community


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Agriculture seen as a system "or "ood sel"-

su""iciency alone# ;hange in olicy statement

6hrin,ing $and-man ratio ;onsolidation o" holdings

ro% short duration cros' drought resistent

cros and imro!e e""iciency o" irrigation

systems# (ntroduce better insurance

mechanisms#

(ncreasing cost o" roduction#

;an be reduced through scienti"ic use o"

inuts# 2ro!iding targeted subsidies#

2oor caital "ormation in agriculture#

;reate enabling ro!ision to suort

in!estments in agriculture#

$ac, o" economic sense in roduction

rocess# (mro!e a%areness o" "arming communities


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Issues relating to

productivity enhancementmeasures /ood commodities are by and large


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Diversication from food

crops to non food crops There are ho%e!er' many oortunities

to re=u!enate agriculture# (t is time to

trans"orm our agriculture into a systemto meet the non "ood demands o" the

domestic mar,et instead o" !ie%ing it as

a mere "ood roduction system# omerominent oortunities a!ailable are

noted belo%E


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pportunity under biofuels The country is "acing "uel crisis# recious "oreign

e3change is being sent on imort o" etroleumroducts# resent technology allo%s use o" bio"uels

either directly or along %ith other "uels# There e3istsscoe "or di!ersi"ication "rom a system "or "oodroduction to a system "or roducing bio"uels# At 15relacement o"


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pportunities available

under Pac*ging ac,aging o" goods is an emerging sector# Cortunity has been comletely utili*ed by

lastic almost to an e3tent o" renderingagricultural inuts useless# ith a legislati!e "rame%or, in lace "or

curbing the use o" lastics in ac,aging and

suorting organic roducts througharoriate olicies it is ossible to trans"erdomestic ac,aging oortunities to the tuneo" 6000 crores to agriculture#


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pportunity in the area of

Pharmaceuticals iopharmaceuticals is a very

important sunrise sector and is

heavily loaded $ith IP! 8ithproper legal frame$or* in place itshould be possible for supporting

contract farming in this sector


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pportunity in the area of po$er

generation Dlectrical o%er is in short suly in the

%hole nation# roduction o" electrical

o%er using cogeneration lants insugar "actories is not ne%# )ut' %hy

%aste alone has to be burnt# Cur

agriculture roduction system can berealigned to roduce o" high calori"ic

!alue "uel#


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8hat is the role of governments( Agriculture continues to be a priority

sector 2unding of interventions is di@cult

but not insurmountable he policies re3uired for greater o$ of

private investments are not in place hesector no$ needs third generation

reforms hese reforms involve politicalideologies Political $ill to usher inreforms is perhaps the need of the hour


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+uggested reforms &hanges in land reforms &hanges in la$s relating to

mar*eting of agricultural produce Providing safety net to farmers !ecogni%ing private sector research

contributions !evamping of extension system

Many more….


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han* you

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