The Hindu Business Line : More public expenditure needed in agriculture: Report

THE causes for the wide spread crisis in the agriculture sector in Andhra Pradesh are complex and manifold, reflecting reduced levels of public intervention in terms of investment and regulation, according to the report submitted to the State Government by the Commission on Farmers' Welfare headed by Prof Jayati Ghosh.

The commission, which probed into the causes of suicides by farmers and the problems plaguing the agricultural sector, stated that the economic strategy of both the State and Union Governments has systematically reduced the protection accorded to farmers and exposed them to market volatility and private profiteering without adequate regulation.

During the past decade, "the State of Andhra Pradesh became almost a laboratory for every neo-liberal economic experiment, with a massive shift towards relying on incentives for private agents, as opposed to State intervention and regulation of private activity." Both the State and Union Governments have reduced critical forms of public expenditure, destroyed important public institutions and did not adequately generate other non-agricultural economic activities, the commission stated.

Set up by the State Government, the commission held discussions with a large number of farmers during its field visits apart from consulting experts in various relevant fields. It observed that by late 1990s, the crisis was found to be the consequence of inadequate agricultural services pertaining to seed supply, machinery, soil testing, market information and market intelligence.

The commission recommended, among others, registration of actual cultivators, including tenants and women, meeting all the credit requirements of the farmers, restoration of tanks and other minor water bodies, revival of the public extension network, provision of quality inputs at affordable prices, creation of a market stabilisation fund and provision of employment for 100 days for every adult in the rural areas. It added that public expenditure on agriculture and allied activities should reach five per cent of the gross state domestic product in the next Budget.

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