The Hindu Business Line : Pouring woes

The rain gods are smiling at last, but it is not an unmixed blessing. For peninsular India if the rain spell has proved to be a vicious parting kick, for the central and northern region, it is a benevolent gesture, parched as they were because of deficient precipitation. Crop losses in Karnataka and Andhra Pradesh (AP) caused by heavy downpour are sure to add to the woes of the kharif season. Paddy, maize and cotton crops have been hit. National rice out put already expected to be down by 10-12 million tonne because of a six million hectare lower acreage could be even lower because Andhra Pradesh is one of the largest producers. Similarly, maize is an important kharif crop in Karnataka. As for cotton, the crop losses are unfortunate, but the impact will not be severe because of overall large crop nationwide. The Government may have had a contingency plan for delays in onset and/or progress of monsoon, but there can be none for sudden fury of the kind unleashed by nature in the last few days. Farmers in Andhra Pradesh and Karnataka are, of course, the worst sufferers because they have already spent all their monies on inputs and agronomy. They not only have to be compensated for income losses, but also supported for maximising rabi season output which can potentially compensate, at least partially, the current losses. The State Governments have to rise to the occasion.

The Met Office forecast of a wet north and northeast India over the rest of the week is not only good for late sown kharif crops, but also augurs well for rabi planting of grains and oilseeds. But make no mistake. The overall agricultural situation is far from satisfactory. For instance, it is critical that the breadbasket States of Punjab and Haryana have sufficient precipitation which would improve soil moisture and boost rabi planting. A close monitoring of input supplies for rabi planting is necessary.

Food prices already at elevated levels face the risk of further spurts. The Government’s short-term fixes like storage control have yielded little. It is time for market intervention. Public stocks of wheat and rice have to be used effectively to douse the inflationary expectations. Pulses and edible oil should be added to the list of commodities that are sold through public distribution system. It is unclear why the Centre continues to abdicate its responsibility on this count and wants State Governments to supply these items. At present, there is no better way to help the poor access essential foods and fight inflation. It may be necessary to regulate and, if need be, curtail the flow of speculative funds into the agricultural markets, both physical and futures. This year’s developments once again expose the hollowness of the Government’s planning process and implementation strategies for agriculture.

Related Stories:
Krishna floods receding, but threat persists: CM
Rains drown farmers’ hopes in AP, Karnataka
45-50 lakh ha fall in area under kharif paddy likely

More Stories on : Editorial | Natural Calamities | Karnataka | Andhra Pradesh

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