10 Reasons for new government in MP

On Tuesday after the declaration of election results, it was clear that the farmers are in a situation of making a huge change in the status of political parties that are ruling in. No time left of doing false promises and putting schemes, which have not proved to be beneficial to farmers in reality. It shows a clear picture how the BJP government lost badly in spite of introducing so many new schemes and benefits for the economically weaker section. 

It is quite is clear that the majority of votes are from the farming sector and the BJP was not able to bring up the condition of farmers in any sense. The farmers have always been in distress and this has really proved the reason for their selection of a new government which they expect can bring some or the other upliftment in their condition. What are the reasons that have compelled farmers to select the new entity? Come let us explore; 

1. Drought of 2014-15 

The drought situation in the country has brought condition of farmers to the lowest. Government has brought number of measures to overcome but has not been able to fulfill the losses during the period. Drought in Maharashtra, Gujarat and Karnataka ar also included. 

2. Lack of modern techniques 

Numbers of modern techniques are invented day to day but none of the new has been implemented. The lack of latest technological inventions always takes us back to the pavilion. Every progressive country depends on its new technologies and inventions, which needs to be implemented. 

3. Clash in farm prices 

The import and export factors are the major issues for the changes in the condition of farmers. Low international prices have meant exports have been hit while imports have hurt prices at home. For example, there was a bumper production of pulses in 2016-17 but imports of nearly 6.6 million tonnes arrived, compounding the problem. In 2017-18, another 5.6 million tonnes flowed in, depressing domestic prices further. The government delayed imposing tariffs on imports, which heightened the problem of prices for farmers. 

4. Problems in supply chains 

Gaps in the supply of finished products has led to the losses in post   harvest products leading losses  estimated at 4% to 16% of the total output, according to the OECD. 

5. Lack of food processing units 

This has led to the reason of loss to farmers as vegetable and meat products accounted for 5 to 8 % of the total value of output compared to cereal-based products at 21% and oilseeds at 18%. 

6. Delayed FCI reforms 

FCI has suggested a complete overhaul and recommended that farmers be given direct cash subsidy (of about Rs 7000/ha) and fertilizer sector deregulated. The panel had said direct cash subsidy to farmers will go a long way to help those who take loans from money lenders at exorbitant interest rates to buy fertilizers or other inputs thus relieving some distress in the agrarian sector. The report has been put in cold storage. 

The government appointed panel and recommended that FCI handover all procurement operations of wheat, paddy and rice to states that have gained sufficient experience in this regard. These states include, AP, Chhattisgarh, Haryana, Madhya Pradesh. 

7. Drawbacks in Marketing 

Although several initiatives have been launched to develop an electronic market place, lack in marketing has been the biggest factor in the loss of the government’s grip in the agriculture sector. Providing a genuine platform for farmers should be the focus which was really diverted as of the case. According to Niti Aayog document, farm sector development has ignored the potential of marketing. Access of farmers to market has always been cumbersome.

8. Irrigation was added factor 

According to survey, NABARD, National Bank for Agriculture and Rural Development has launched Rs 40,000-crore Long-Term irrigation Fund. Under this programme, 99 large irrigation projects were to be completed by December 2019 but the progress so far has been limited. There were number of factors including bureaucratic delays and slow implementation of states. 

9. Failure of Insurance schemes 

Pradhan Mantri Fasal Bima Yojna (PMFBY) has proved to be a complete failure. It was launched in year 2016 to provide Insurance and financial support to farmers in the event of the failure of any crops due to natural calamities, pests and diseases. It was also meant to stabilize the income of farmers and ensure they remain in farming. But due to high premiums and lack of innovation by insurance firms it has failed creating the stable condition for the farming community. 

10. Low productivity 

According to OECD data, the share of the farm sector in GDP has declined from 29% in 1990 to about 17% in 2016, but it remains a major source of employment. 85% of operational land holdings are less than 2 hectares and account for 455 of the total cropped area. Only 5% of farmers work on land holding larger than 4 hectares, according to Agriculture Census 2016.This was quite lagging compared to other Asian economies such as China, Vietnam and Thailand. Wheat and Rice yields are nearly 3 times lower than world yields while those for mango, banana, onion or potato are between 2 and 7 times lower than the highest yields achieved globally, according to the OECD. 

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