Earlier, we discussed at the significance of green revolution and status of agriculture in India. In the article we will look into economic and ecological challenges along with the threats posed by climate change to Indian agriculture. Mismanagement of water resources, degradation of land and biodiversity has been a cause of major worry. The excessive use of pesticides and fertilizers has added to the issue.
ECONOMIC ISSUES
The input cost of agriculture has been increasing continuously. This has been further aggravated by decreasing returns on output. Middle men pocket significant amounts as commission leaving the farmer with a meager amount which is often adverse.
Even when there is a bumper harvest, farmers have been not able to make good profits because of price crashed due to excess supply. The price fluctuations and absence of storage capabilities have disempowered the farmer.
Crop failure due to pests, weeds and pathogens has also been on the rise, especially due to resistance induced by indiscriminate use of pesticides and herbicides.
Land fragmentation due to inheritance has also made farming unviable and unprofitable. It has been proposed that co-operative farming initiatives by pooling land and resources can change the face of the sector. A co-operative revolution similar to the one witnessed is white revolution can help them achieve economy of scale in a hitherto unprecedented manner.
PUBLIC DISTRIBUTION SYSTEM
India Public Distribution System (PDS) has been criticized for leakages in procurement and distribution. The setting of Minimum Support Prices (MSP) has ensured high level of buffer stocks with the government. However, due to an ineffective distribution mechanism there is a situation of rotting Grain Mountains on one hand and hungry millions on the other.
In 2013, the parliament enacted the National Food Security Act (NFSA) with the objective of providing food and nutritional security. It aimed to ensure adequate quality and quantity at affordable prices. NFSA is progressive Rights Based Legislation which has expanded and strengthened the earlier PDS.
MANAGEMENT OF WATER RESOURCES
Another area of significant concern is the level of falling water table. Many state governments have made provisions for free or subsidized electricity to the farmers. These have led to over drawing and over exploitation of ground water at a rate well beyond the aquifers recharge capability leading in increase in the salinity.
Decreasing productivity due to fall in fertility of the farmlands has led to decrease in the returns on investment. Farmers have tended to increase fertilizer to compensate for the fall which has done more harm than good.
Sowing of rotation crops such as legumes and fodder crops can not only increase the fertility of the soil but be extremely beneficial to the land in the long turn. Awareness among the farmers should be increased to the harmful effects of excessive chemicals. Scientific water management through monsoon management centers should enable the maximization of benefits of a good rainfall and decrease the harmful impact of deficit rainfall.
CHALLENGES DUE TO CLIMATE CHANGE
Climate change has become a buzz word in discussions about environment, but little is being done to make real and significant impact a ground. There has been insufficient global co-operation on the issue. The consensus evolved at the Paris Climate conference to restrict the increase in temperature to 1.5˚C above pre-industrial era is feared by some experts, to be too little, too late.
With climate change there has been an increase in the abnormality and unpredictability of the monsoons. The rise in mean sea level is feared to adversely affect the coastal regions. India with its lengthy coastline of around 7500km might be adversely affected due to sea level rise. Cultivable regions in West Bengal and Kerala are particularly vulnerable to sea level rise.
The unpredictability of monsoon had led to cycles of drought and floods. There is an urgent need to put in place a robust and responsive drought code and flood code to deal with the situation.
Not only the government but the global community should take anticipatory and pro-active steps to deal with the challenges steaming from agriculture.
CHALLENGES AT WTO
India along with other developing countries has fought against the developed countries for an equitable deal in World Trade Organization (WTO). However, the North – South divide (the difference of opining between the developed and developing countries) has been only increased with a final Agreement on Agriculture (AOA) being elusive.
Developed nations have large land holding and practice commercial mechanized agriculture. Whereas, developing nations such as Indian and under developed nations comprise mainly of small and marginal farmers who practice subsistence farming. Their livelihood needs to be protected.
India along with other developing countries pushed for a Special Safeguard Mechanism (SSM) in WTO to check and protect the farmers from abnormal surge in cheap imports.
In WTO, subsidies have been categorized by “Boxes” which are identified by colors of traffic light colors,
- Green box (Permitted)
- Amber box (slowdown) (Is to be reduced)
- Red (stop i.e. forbidden)
Theoretically the categorization looks good but, in practice most of the subsidies given by development countries are categorized as trade distorting and fall under the red box. Though the developed countries provide huge subsidies to their already well off farmers these are categorized as conservation and research funding and hence fall under the green box. Thus in practice, the subsidy provided to the already struggling poor farmer of the developing nation ought to be stopped, where as the domestic support provided to the rich and well off farmers of developed nation is permitted.
Though India exports only 7% of its agriculture produce the developed nations have strived for their pound of flesh at WTO negotiations. The public stock holding of India Public Distribution System came under fire at the WTO negotiations. Despite push coming to shove, India stood its ground and managed to get a “peace clause” protecting India from action in WTO until permanent solution to the public stock holding problem was found.
Apart from pursuing the Special Safeguarded Mechanism (SSM) to protect India farmers from cheap import surge, India has made use of import duties, minimum export price and anti-dumping duties to protect the farmer’s interest.
The stringent phytosanitary certifications under Codex Alimentarius have been detrimental to India exports. Developed nations have frequently resorted to its use to impose non-tariff trade restrictions on under-developed and developing nations. These restrictions such as the European restriction on India dairy imports harm the farmers and decrease their earnings.
Loss of interest in farming has been of particulars concern in Indian agricultural sector. Increasing input costs and risk coupled with decreasing return on output has made farming an unprofitable and high risk venture. This has resulted in decreasing youth participation in the sector.
Farmer suicides have been a blemish on India agricultural sector. Over burdened by debt and unable to cope up with crop failure several farmers have resorted to extreme steps. With increasing global, ecological and economic uncertainties there is an urgent need to protect and safeguard farmer’s interests.
The other challenges Indian agriculture include loss of prime farmland, loss of biodiversity, decrease in productivity and technological stagnation.