Budget and Agricultural Reforms

Oh!! Ultimately the budget whirlwind seems to be over!!! Still feeling hot!! Everywhere I go, find bunch of people talking over the budget. Different people had different opinions about the budget. As I think that I am not a good orator, so let the Blog make a victim of my thoughts!! Every year we hear a lot from the Finance Minister. However, what is announced, what is implemented and what the general public get, could be a different aspect. And, it could be a subject of debate while having a sip of coffee or sitting on the lunch.

I did not have much expectation from the FM in this session. However, I was thinking that after seeing the economic atmosphere around and the whether condition, he would definitely focus on our traditional sectors like agriculture, I never could not find reason that why the agriculture industry does not attract the minister. Huh!! I have left it on its fate. Why do we always talk about the poor and do for the rich?

Can the waiver on the loans drive the permanent solution, government did not leave any opportunity to pat her back on it. How good it would be, if the government open the ears, and investigate the root cause of the farmer’s suicide and implement the basic reforms on the agriculture. I had read in my childhood in the books that Indian agriculture depends on the uncertain weather condition, lakh of hectare’s crop is vanished due to flood, every state has distinct kind of soil, we do not have concrete irrigation resources, we are far behind in the tools and technology used in the farming, every year we waste lakh of hectares in soil erosion blah blah blah ……. I do not know whether the writer was too intelligent or my finance minister does not know anything or have not got any such syllabus during his study, which talks about these problems. Some time I feel that I should carry all those books and put on the minister’s table, and then ask him to prepare the budget.

Agricultural growth stood 1.6% in 2008-09. It accounts 18.5% contribution in country’s GDP. And it’s the subject of deep concern that the average growth rate of principal corps is only 3.17% in India from 1994-95 to 2007-08. As per the Directorate of Economics and statistics (Ministry of Agriculture, India), only 42.9% agricultural area under the principal crop, in the country was irrigated in 2005-06 and 43.9% in 2006-07. It means more then half of the agricultural land is still at large to get the irrigation facility. Gross area under major crops e.g. Food grains, Cereals, Pulses, Rice squeezed by 3.13%, 2.33%, 6.88%, and 6.79% respectively during 1990-91 to 2008-09. Approximately 6.3 million hectares of crop-land destroyed due to flood in 2007 only. And, approximately same happens every year. Almost 130 million hectare of land (45% of total geographical surface area) is affected by soil erosion. India is loosing soil 30 times faster than the natural replenishment rate.

Contribution of IT/ITES industry to India’s GDP has grown from 1.2 per cent in FY 1998 to an estimated 5.5 per cent in FY 2008, which shows the growth of 358.33% in a decade. And, approximately 1.12 Million are associated with the industry. On a contrary, the agricultural industry has 65% of the total population of the country. In 1990-91, the contribution of agriculture towards country’s GDP output was at 32%, which has decreased to 18.5% by 2008-09. In other words, it was a tremendous decrease of 42.19% in 18 Years, which clearly shows the government’s focus and intention towards the agriculture.

The aforesaid data raises big question on the existence of the agricultural ministry too. What kind of development they are engaged with to uplift the industry, no one knows. It raises disappointment and concern over the government. Everyone knows that every year the government allocates billions of rupees for welfare and development of the agriculture. However, how and where is being implemented is a million rupee’s question. I believe that if the government focuses on the aforesaid concerns, it will not only improve the life of the associated people, but also play a pivotal role to increase the growth rate of the GDP of the country.