Geographically villages take a lion’s share in India. More than before the priority now is for the agricultural sector and without agricultural development India cannot firmly achieve double digit growth rate in economy. It is doubtful that the failed political parties of the past in power now with the corrupt government agencies implementing the economic programs can deliver the expectations of the mass in the rural India. However, the aspirations of the people can be fulfilled only if the corrupt officials are removed and the implementation of economic reforms is done with careful monitoring mechanism.

Agriculture Sector

All the nations of the world give first preference to Agriculture before other sectors. But in India importance for development is given in the reverse order of preference. By the persistent efforts of the peasants depending only on the monsoons and a little sop once in every five years India has achieved surplus production of food grains in the 1980s. Also, annually though India is capable of producing 220 million tons of food grains in surplus, because of poor distribution system, it has become incapable of preventing the farmers from deaths due to starvation or committing suicides due to debt burden, long drought situation or floods. Further, because India has a storage facility of 70 million tons only for keeping food grains in stock and the perishable nature of vegetables and fruits, 35% of agro-products are lost as waste. So, it is a pity that India suffers from the problem of scarcity in plenty because of bad policies and poor infrastructure facilities.

Foodgrain Production

As all funds are allotted to industries, defense and commerce out of the 30% revenue available from the national income after paying 70% of it as salaries to the government employees, farm sector is neglected without any reforms and modernization process being carried away by the notion that agriculture is a loss making sector. So, with no hope of economic development in rural areas many people have migrated to metropolitan cities and towns to work in industries, mills and companies. Satellite towns have increased along with the population. So, to balance the increase of population and their needs food grains production has to be increased to 300 million tons before 2020.

Liberalization of Economy

Consequently, for mobilization of financial resources to providing funds to various development projects, liberalization of economy has been started some 15 years ago leading to privatization of public sector units (PSU) and globalization of trade. But development of industries, IT, textiles, leather and other sectors at the expense of agriculture with the view to get short term gains at the cost of long term consequences has led to the present chaotic crisis in the 80% of rural India compelling the government to fulfill their demands on war footing by hook or crook.

Agro-Industries

So, infrastructure in the rural areas has to be developed in India first by introducing food for work program that will pave the way for laying of roads, digging of wells, installation of electric power, construction of go downs with refrigeration facilities for storing food grains, processing of vegetables, fruits and flowers into pickles, jams and perfumes for domestic and foreign consumptions and marketing them abroad utilizing export potentialities with the expertise of entrepreneurs. The skill and utilization of entrepreneurs, scientists, engineers, doctors and teachers have to be geared up in rural areas for the spread of education needed for the dissemination of agricultural knowledge, reduction of cost of production and the processing of products using TV, Radio, internet and possible phone facilities and various other jobs. This is the only way to stop migration of villagers to cities.

Above all, with the guidance, monitoring skill and control of sincere scientists, experts and entrepreneurs government, banks and financial institutions should come forward to make financial investments in irrigation projects, for buying of crops, fertilizers and insecticides, reducing cost of production, processing of agro-products and marketing them in the world in order to make agricultural development effectively, beneficially and profitably possible in India. So, priority to agriculture sector is the utmost need of the hour now.

WTO

World trade agreements are binding on all nations in the World Trade Organization (WTO), in which India and some other third world developing countries are members. Only recently many Asian nations by the globalization process have integrated themselves in the world market for the promotion of their trades and development of their economies. Because the advanced western countries are globally well established in trade, they are dominating other countries in the world market.

Trade/Livelihood

The success of the developed countries depends upon Market access, Domestic support and Export subsidy that are called as the three pillars of trade. Accordingly, as per their policy of protectionism both the USA and the EU countries give subsidies to their farmers, cut tariffs for exports and impose heavy duties for imports of farm products; and through WTO compel the Asian developing countries to cut subsidies to farm sector and reduce customs tariffs to export of food grains. Agriculture is just a trade for USA and EU but it is not only a trade but also a means of livelihood for millions of farmers in India and Asia.

Measures Needed

In the Doha WTO meeting India forcefully said that the aspirations of majority of Asian peasants should be taken into consideration for any agreement. Consequently, in the Cancun meeting India along with Mexico, Brazil and South Africa formed into G 20 countries to flight for their demands. But USA and other countries took up the Singapore problems like Investment and competition, Trade facilitation, Procurement of products by government and Regulation of Customs tariff for an inconclusive discussion which were again taken up in the Geneva Conference leading to no definite agreement.

Even after the meetings at Hong Kong and recently at Davos in the World Economic Forum (WEF) also no solid decision has been taken yet. So, the G 20 countries should mobilize majority support in the next WTO conferences to make USA and EU accept the conditions like 1. Ban subsidies to farmers and 2. Reduce Customs tariff for imports of agro-products from other countries which will boost sale of Indian farm products in the world market.  

February 17, 2007

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