Framing viable strategy for agri sector growth

It is recognised that the area under cultivation in the country may decline due to pressures of urbanisation and industrialisation. Therefore, rising requirements of farm output have necessarily to be met through the rise in the combined productivity of all the inputs. Agricultural research and extension are the major determinants of the rise in such productivity. Yet, the allocations for agricultural research, education and extension in the country have stagnated around 0.5% to 0.6% of agriculture GDP for a long period, as against a minimum of 1% of agriculture GDP recommended by the ICAR over two decades ago. Budgets of both the States of Telangana and Andhra Pradesh for 2014-15 indicate the provision for agricultural research & extension at 0.3% of agriculture GSDP for Telangana and 0.26% for AP. The corresponding figures for extension and farmers’ training are 0.04% and 0.03%. Adding Center’s allocation, the figure for each of them may go up to around 0.5%

Agriculture growth has been high at over 4% per annum at the national level in the last decade following deceleration to a mere 2% in the earlier decade. Agriculture GSDP growth rate in Telangana could well have been above the national average, at around 5%, in the last decade.

This achievement is in line with the overall GSDP growth rates in Telangana as well as in Andhra rising above the All-India GDP growth rate nearly a decade ago after hovering below the national average for five decades of planning.

Thanks to the rapid growth of services sector, including particularly the IT sector, following economic reforms, the contribution of Telangana’s own GSDP growth rate towards raising the growth rate of undivided AP has been significant, leading to piercing the national average growth rate.

This revival of farm growth at the national level as well as in Telangana was made possible by stepping up public and private investment, adopting new technologies in an environment of improved terms of trade for agriculture, and, not the least, diversification of agriculture induced by the rising demand for high value products.

Policy failures

Deficiency of public investment and effort for water augmentation and its conservation; inadequate allocations for agriculture research, education and extension; neglect of marketing reforms and post-harvest infrastructure including agro-processing; and inadequate supply of institutional credit and provision of crop insurance are the major failures on the policy front.

Mounting subsidies on certain inputs have undermined productive investment, sustainability and incentives for the adoption of new technologies for conservation of resources. For example, excessive subsidy on urea, apart from undermining productive investment, has prevented balanced application of nitrogenous, phosphoric and potassic fertilisers and led to indiscriminate mining of soil nutrients.

Provision of free power for drawing ground water in semi-arid regions like Telangana became inevitable, no doubt, because of the decades-long neglect of surface irrigation leading to stagnation in agriculture and distress for farmers. Farm growth picked up in Telangana and very soon peaked to the all-India level, following the supply of free power since mid-2000s, but led to unsustainable extraction of ground water and degradation of environment.

Hopefully, the current drive to augment surface water through Mission Kakatiya for reviving tanks as well as through a number of irrigation projects for harnessing Godavari water will bring about the much-needed balance in the supply of irrigation water from different sources. This can create necessary conditions for appropriate pricing of water and targeting of subsidies only to the deserving sections for ensuring their sustainable and equitable use.

Strategy for agricultural research

Even before the consequences of global warming and climate change began to be felt in terms of extreme weather events, Telangana being semi-arid, its agriculture has been characterised by high uncertainty and risk. Telangana accounted for over two-thirds of the total number of suicides committed by the farmers in the undivided AP State.

Therefore, raising farm productivity through methods that reduce output variability or risk while protecting environment has to be the foremost concern of agricultural research in Telangana. Apart from rainfall and irrigation, cropping intensity and diversification of agriculture contribute to growth as well as reducing variability in output and income.

Evolving cropping systems and farming systems, including livestock enterprises, suited to small farmers under varying agro-climatic conditions holds the key to such a strategy for making optimum use of farmers’ own resources like land, labour and water and harnessing nature’s bounty like sunshine.

The perspective on agricultural research drawn by the faculty at the Professor Jayashankar Telangana State Agricultural University, in the light of the emerging challenges, is quite encouraging. Emphasis on soil health, water conservation and plant health through innovations in biotechnology are commendable.

Priority for agricultural research & extension

It is recognised that the area under cultivation in the country may decline due to pressures of urbanisation and industrialisation. Therefore, rising requirements of farm output have necessarily to be met through the rise in the combined productivity of all the inputs.

Agricultural research and extension are the major determinants of the rise in such productivity. Yet, the allocations for agricultural research, education and extension in the country have stagnated around 0.5% to 0.6% of agriculture GDP for a long period, as against a minimum of 1% of agriculture GDP recommended by the ICAR over two decades ago.

State agricultural universities are greater victims of financial stress. Latest budgets of both the States of Telangana and Andhra Pradesh for 2014-15 indicate the provision for agricultural research & extension at 0.3% of agriculture GSDP for Telangana and 0.26% for AP. The corresponding figures for extension and farmers’ training are 0.04% and 0.03%. Adding Center’s allocation, the figure for each of them may go up to around 0.5%.

Compare our position with China. China lagged behind India in respect of agriculture research and extension during the green revolution period of 1970s and 1980s, but forged much ahead of India following economic reforms in the post-green revolution period. China is now allocating over 1.5% of its agriculture GDP for agriculture research & extension.

(Excerpts from the First Foundation Day Commemorative Lecture, Professor Jayashankar Telangana Sate Agricultural University in Hyderabad on September 3. The writer is the Founder-Member & Honorary Professor, Centre for Economic and Social Studies (CESS), Hyderabad)

By C H Hanumantha Rao