Punjab govt needs to work on crop diversification: Economist

The state govt has not implemented the committee on restructuring the cropping pattern's recommendation to set up a separate department for crop divesification, economist and Punjab State Planning Board Deputy Chairman S S Johl said in an interview with Business Standard.

"This is supported by the fact that whereas the government claims diversification on over six lakh hectare, the ground reality is that the area under wheat and rice has increased during the last four years while the area under alternative crops such as maize, oilseeds and pulses has decreased," he said.

Starting from the very beginning, Johl said that in 1984-85, the government of Punjab realised the gravity of the situation created by monoculture --. rice-wheat crop rotation in respect of bulging food stocks with the government of India, in the context of supply exceeding demand and consequently the Food Corporation of India dragging its feet on procurement of food grains, specially paddy.

This also happened because minimum support prices were not increased with the increases in cost of production, hence a squeeze on farm incomes, food-deficit states increased their food grain production and as a consequence reduced lifting of food grain from the public distribution system, receding underground water table and deteriorating agricultural ecology of the state.

"The government of Punjab, therefore, constituted a committee to look into the situation and suggest measures to deal with the problem. The Committee submitted its report in July 1986. The report of the committee suggested shifting of at least 20 per cent of the area from under rice and wheat crops to other crops in order to bring about a perceptible change in the cropping pattern of the state," Johl added.

"Because of prolonged drought and consequent foodgrain shortages, the government of Punjab ignored the recommendations of the committee on crop diversification. In fact more emphasis was placed on increasing foodgrain production on insistence of the central government. However, from 1992 onwards, once again the stocks started building up. By 2000-01, the build up of foodgrain stocks became unmanageable at more than 58 million tones. This again gave birth to new problems.''

Commenting on the role of present Amrinder Singh-led Congress government on the diversification programme, Johl said this government took over in early 2002 and a committee was set up again to review the position.

"The committee submitted its report in June 2002, suggesting an "Agricultural Production Pattern Adjustment Programme for Productivity and Growth" This report made recommendations for every sub-sector of agriculture, including crops, fruits, vegetables, agro-forestry, floriculture, medicinal and aromatic crops, ornamental crops and animal husbandry. In total about 95 recommendations were made for various sub-sectors. Recommendations were also made for implementation of the diversification programme. The state government through its agencies and departments are endeavoring to implement the diversification programme as per their own understanding and capacities.''

Commenting on the paddy crop, he said that the real problem crop for Punjab is the rice crop. ``The crop grows from beginning of June to end September. This is the period when there is maximum monsoon precipitation. Yet, the water requirements of this crop are such that this is exactly the period when water table recedes in the state. Some farmers plant rice in the first week of May. This period of one-and-a-half month witnesses the maximum depletion of water table. This crop is ready for market in first week of September, but is of poorer quality and has high moisture content. Yet, under the influence of farmers' pressure groups, the government is invariably forced to relax specifications and lift the produce. Over the last four years, in order to sustain paddy crop, the industry had to be closed two days a week in order to divert electricity to the farm sector during the months of June to August. Domestic sector and commercial sector had to suffer scheduled as well as unscheduled and unannounced cuts in power supply for 4 to 6 hours a day. The opportunity cost of these power diversions is variedly estimated between Rs 3,000 to 3,500 crore. Thus the social cost of raising paddy in the state runs up to over Rs 5,000 crore, which is accounted for nowhere in the calculations of the cost of production of paddy by the Commission for Agricultural Costs and Prices (CACP).''

When asked as how can the government generate employment in rural areas, he said that there is a dire need for ancillarizing some industries and locate these ancillaries dispersed in the rural areas and also to locate agro-processing and agro-based industries in these areas.

``These ancillaries must be environment- friendly and clean enterprises that generate jobs for the literate and educated rural youth; otherwise, there is no dearth of ordinary labour jobs in the state, which attract migratory illiterate labour from outside of the state. According to one PAU study, already more than 17 percent of the population of the state is of migratory labour and their families, which is affecting the demography of the state adversely and does not benefit the unemployed youth of the state. Any expansion in such types of job will end up in attracting more of migratory labour into the state. For the purpose of increasing off-farm employment opportunities, the programme of Punjab government to set up rural business hubs is a step in right direction.''

When asked whether the state has taken the right step to amend "The Agriculture Produce Markets Act 1961" to provide for setting up of state-of-the-art modern private markets, especially for perishable products. He supported it and said that several credible companies and corporates such as Reliance India, ITC, Bharti, NDDB, are showing interest in establishing such markets. The state government is rightly facilitating and promoting such ventures.

In these markets, the companies will buy the quality produce, grade, process, pack the produce and sell it in the high-end domestic and/or international market. Based on mutual benefits, these companies can enter into contracts with the farmers also. Expansion of area under fruits can help a lot in the process of diversification. Through state promotion, Pepsi and Tropicana are endeavoring to establish orchards of processable oranges, on a large scale. As yet, they are at experimental stage although they have started distributing plants to the farmers. The real impact of this effort will become visible after about eight to ten years.''