'Focus now on linking farmers to mkts'

TRADE TALK: Calvin Miller

Calvin Miller, senior officer, rural finance, Food and Agriculture Organisation (FAO), is happy with the country's rural finance when compared with the rest of the world. He, however, he expresses concern over the government's increasing intervention in rural finances, even as the private sector fights shy of investing in agriculture. Excerpts:

As an agricultural economist, where do you see Indian agriculture heading?

Indian agriculture is going in two different directions. On the one hand, the country has seen major growth in value chain and linkages, consolidation of production, finances, marketing, risk management, focus on standards and quality commitments. On the other, it has a very large subsistence farming base, which I see is gradually losing out "� a difficult transition probably because of a large population. Besides, it (subsistence farming) would not be competitive in the long run. The focus should now be on linking farmers to the markets to bring the fruits of growth closer to them.

What measures need to be taken as regards rural finance in the country, especially in the unorganised agriculture sector?

In terms of rural finance, India has more depth. More people have access to rural finance in India than in many other developing countries, largely due to the government's programmes. However, the downside of it is that the heavy state intervention in agriculture has made the private sector shy away from investing in agriculture finance.

How do you see India's contribution to global agriculture?

India is emerging as one of the new giants, along with China, Brazil and Russia. It represents a middle ground between the US and Europe and the very poor countries. India can be a global leader, as it has a competitive edge with a sizeable tech-savvy professionals.

What help can India expect from the FAO?

The FAO is an agency of the United Nations Organisation focused on food and agriculture. Along with funding, we are a technical agency providing more expertise in terms of technical analysis. With the Indian government, we are involved in different projects, such as food and vegetable chain and linking farmers to markets. We are planning a major conference with the government on agri-business competitiveness.

What are the ways to deal with a rising population that is leading consumption levels to a new high every year?

Increasing productivity and efficiencies (cutting losses and expenses), improving policies, developing strong infrastructure and creating better investment environment will help in tackling the rising demand.