This refers to the report "Banks ask FinMin to stop Andhra farm loan waiver" (June 7). The process of waiving loans is akin to treating the symptom, instead of rooting out the disease. Farmers continue to fall prey to local moneylenders. What needs to be addressed are the inefficiencies in India's agriculture sector.
More than 50 per cent of the population is still dependent on agricultural activities for their livelihood, whereas the contribution of agriculture to the gross domestic product (GDP) is declining - from 14.6 per cent in 2009-10 to 13.7 per cent of GDP in 2012-13. The faster development of industrial activities would provide an alternate source of employment so as to reduce the workforce dependent on agriculture. Farmers should be allowed to deal directly with consumers, instead of going through traders. This would ensure percolation of the profit margin to the producer.
The storage and processing of agricultural produce also needs improvement. The government should persuade states to permit foreign direct investment in multi-brand retail, maybe with covenants for developing infrastructure for storage and so on. Farmers should also be educated about different types of crops based on expected demand, instead of going for the same produce year after year.
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number
More than 50 per cent of the population is still dependent on agricultural activities for their livelihood, whereas the contribution of agriculture to the gross domestic product (GDP) is declining - from 14.6 per cent in 2009-10 to 13.7 per cent of GDP in 2012-13. The faster development of industrial activities would provide an alternate source of employment so as to reduce the workforce dependent on agriculture. Farmers should be allowed to deal directly with consumers, instead of going through traders. This would ensure percolation of the profit margin to the producer.
The storage and processing of agricultural produce also needs improvement. The government should persuade states to permit foreign direct investment in multi-brand retail, maybe with covenants for developing infrastructure for storage and so on. Farmers should also be educated about different types of crops based on expected demand, instead of going for the same produce year after year.
V Sridhar Kolkata
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number