OneWorld.net (U.S.)

NEW DELHI: The National Commission on Farmers has called for credit reforms in the farm sector to prevent farmers from committing suicide. It has suggested reducing the interest rate on farm credit and asked for a census of suicides for a proper understanding of the situation.

Observing that "Indian agriculture is in a state of serious crisis," the Commission, chaired by M.S. Swaminathan, said the rate of growth in food production had fallen below the population growth rate. "If we place faces behind figures, over 400 million children, women and men belonging to families with small and marginal holdings and landless labour families are in deep distress."

Dr. Swaminathan and his team have submitted the second report of the Commission titled "Serving farmers, saving farming," to Agriculture Minister Sharad Pawar. It has not officially been made public. Ministry sources said the report was "under examination."

The first report of the Commission submitted earlier this year was "under discussion" with the Ministries considered. Both the reports are interim. The term of the Commission is till October 2006.

The Commission suggested that an all-India Debt Survey be done to take into account newer forms of credit, indebtedness of farmers and "newer forms of bondage."

It recommended a moratorium on debt recovery, including on loans from non-institutional sources till "reasonable" profit margins were recorded.

The debt recovery should be staggered in easy instalments.

It suggested that a corpus — on the lines of the National Calamity Relief Fund — be set up for assisting farmers affected by crop loss and that the interest of loans in areas hit by pests and natural calamity be waived.

Crop insurance cover

It called for the crop insurance cover to be expanded all over the country and the implementation of legislation to regulate and deter the sale of spurious seeds and chemicals (pesticides).

The Commission recommended that the minimum support price for coarse cereals and pulses be implemented and quantitative restrictions on import of farm commodities be introduced.

It laid stress on Market Intervention Schemes and the setting up of Village Knowledge Centres in farmers' distress hotspots.

"To achieve a four per cent growth rate in agriculture, we must aim at an eight per cent growth rate in horticulture and animal husbandry. This calls for higher investment in irrigation, animal husbandry, fisheries, post-harvest technology, rural energy supply and communication. The investment in agriculture has stagnated at 13 per cent of the Gross National Product in the last three five-year plans," the Commission said.

It has worked out a composite financial package of Rs. 8,337 crore investment in various sectors of agriculture, fisheries and animal husbandry.

This is in addition to the Rs. 12,230 crore estimate of the Inter-Ministerial Task Force on Agriculture Marketing for development of marketing, storage and cold storage infrastructure during the Tenth Plan.

Source: The Hindu