GRSV Blog No. 4,
Released on 11/05/2020,
S.V. Raghuram Shetty, C.L. Laxmipathi Gowda, V. Ramanatha Rao and
M.J. Vasudeva Rao
Co-Founders, GRSV Consulting Services (www.grsvconsulting.com)
These are unprecedented times. The world has come to a sudden halt due to the crisis caused by the novel Coronavirus (COVID 19) pandemic. When we consider the many epidemics and disasters seen before, history seems to be repeating itself: the world has seen major health crises every 100 years over the last four centuries with Plague (1720), Cholera (1820), Spanish Flu (1920), and COVID -19 in 2020. The information on how many are dead and how many are affected by the present pandemic are available widely in the media. The pandemic has shut down large parts of the world economy, which is fast sliding towards a deep recession. Though the virus is a calamity in the area of public health, it has impacted all major economic activity, including the primarily important agricultural sector. Hence the question we ask – can agriculture bounce back or comeback transformed for the better once this present pandemic end – globally in general and India in particular? We think it will.
Serious crises and disasters often provide great opportunities, and we need to focus on those as well. History has shown us how agriculture and food systems have not only recovered but also transformed for dramatically better soon after crises and disasters; for example, after the “Irish Potato Famine” in Europe, the “Great Depression and Dust Bowl” era in the US, and the “Bengal Famine” period in India. One common strand in all those examples is the role that science and technology played in the historical transformations. Can the present Coronavirus challenge be leveraged as an opportunity to arrest the downward spiral of smallholder agriculture and revive and reboot the rural economy? Can agriculture be transformed for the better once this pandemic ends in India and globally?
In the shorter term, India seems to have done well compared to the rest of the world, both in limiting the spread of the virus, and more importantly, in ensuring systems and processes are put in place – to prevent any panic among farmers and consumers. Measures have been taken to mitigate the effects of the lockdown on routine agricultural operations.
Two key elements need particular attention in developing a short-term mitigation plan and the longer-term revival strategy and action plan.
In the short term among other things, we consider resettling migrant labour, and assisting farmers in harvesting and planting activities
1. Resettling migrating labour: COVID-19 has brought into focus the extent of migrant labour in the country. Governments should utilize the opportunity created by reverse migration of labour to villages and find immediate employment for them, through programmes such as the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), but mostly focused on immediately needed agriculture and allied activities. For example, utilize these labours for community and watershed-based natural resource management (NRM) activities, agroforestry, warehouse construction, rural road infrastructure development, etc. Besides, find strategic ways to encourage this labour to stay in rural areas permanently, by creating agri-based value addition, food processing, and other village-based industries within rural areas.
2. Assisting individual farmers: Even if such activities do not presently come under the ambit of MNREGA, assisting in harvesting the present Rabi crops and planting the following Kharif crops may be seriously considered. A well-conceived plan for Rabi crop harvest, storage, and marketing, and preparation for the coming Kharif crop season should pay special attention to the following:
- small machinery for harvesting; along with transport and storage of Rabi season produce,
- adequate marketing facilities for the Rabi produce, with assured price support,
- seamless supply linkages between producers, traders, processors, and consumers,
- timely land preparation for Kharif cropping, with an adequate supply of agri inputs, and
- smooth delivery of food and materials in coordination with all stakeholders.
In the longer term, the country should chart a revival plan for agricultural and rural development. Policymakers along with agricultural technologists need to look at smallholder agriculture both as a source of food and nutrition security, and as a source of sustainable economic growth. They need to recognize the existence of strong linkages among public health, nature/ecosystem, and economic activities (including agriculture) and the key role played by science and technology in formulating a revival plan. And the strategy should be developed through extensive consultations with all stakeholders, with emphasis on the highly vulnerable small farmers and women.
As part of strategy, India has recently developed a master plan to “Double Farmers’ Income” (DFI). The plan has rightly taken an agro-ecology based, income-centric (vs the past production-centric) approach, including backward and forward linkages with rural agro-industries to revive the rural economy. The plan advocates “efficiency for sustainability”. However, the plan seems to have emphasized efficiency in the production of specific commodities, partly at the cost of sustainability of agro-ecosystems as a whole. An integrated, holistic systems approach to aim for the congruence of efficiency and sustainability together (aiming for win-win) is still needed.
A detailed strategy (see Dalwai Committee Report No. 14) was developed in 2018 and parts of it are already under implementation. However, with changed situation due to the present pandemic, it requires an urgent and serious review and alterations made to the plans that have been drawn up. It is important to keep in mind that the economic situation post-COVID 19 will be less than optimal and there will be a funding crunch. Hence the targets need to be revised and aspirations need to be trimmed and grandiose projects need to be avoided (in other sectors as well, so that the funding for agricultural development is maintained). A proper balance among efficiency (productivity), equity (inclusivity) and ecology (sustainability) should be at the core of managing the agroecosystems. Available technologies need to be deployed and policy reforms needed for sustainable biodiversity, land and water management need to be implemented vigorously.
Given these conditions, it is important to harness science and technologies for sustainable agricultural (not just for production or income) development. The associated reform measures need to be implemented to revitalize agricultural research and technology, which are required to reboot smallholder agriculture and thus revive the rural economy. The decision-makers and other stakeholders should use this opportunity to aggressively push the important policy reforms needed to fix the rural distress and ensure food, nutrition, ecological and economic security and prosperity. Some critical components which need urgent attention include:
– Increased care of nature (biodiversity, soil, water etc.) that are fundamental to agriculture.
– Adoption of sustainable production strategies focusing on intensification, resilience and diversification along with optimal inputs
– Production matrix guided by demand-pull (not supply- push), income-generating off-farm and off-season job creation strategy for rural areas
– Policies and strategies to adopt “fork to farm” approach, that includes activities such as processing, packaging, distribution and retail, by creating needed rural infrastructure/Agri-logistics to modernize agriculture and strengthen every link in the Agri-produce value chain
– Implement policies and programs for de-risking agriculture and enhance resilience. Reforms in land use and tenure system, marketing, pricing, crop-insurance, subsidies, etc to manage risks at all stages of production and marketing
– Strategies to encourage rural enterprises based on agriculture (post-production activities, especially value addition and processed foods) for rural youth employment, and access to markets including export markets
– Revitalize agricultural research, education (ICAR and Agriculture universities) and technology transfer (extension – Department of Agriculture) through a critical review of the present status and implementing reforms that are urgently required along with the necessary budget to address the changing scenarios.
Thus, the situation brought about by the COVID 19 pandemic may be effectively used in a non-partisan manner to reboot Indian agriculture. The country has agreed to work towards the UN Sustainable Development Goals (SDGs), which also require a mini-review. The 17 SDGs (www.un.org/sustainabledevelopment/sustainable-development-goals/) formulated in 2015 cut across national boundaries with several domains of expertise and institutional mandates. Agriculture by itself cuts across several SDGs (https://farmingfirst.org/sdg-toolkit#section_1). These aspirations require us to adopt a 3M – multi-ministerial/sectorial, multi-institutional and multi-disciplinary – approach.
Yes, the present Covid-19 crisis provides both challenges and opportunities for the revival of agriculture and rural prosperity. This opportunity for resetting and rebooting agriculture should be grabbed quickly, first by implementing the needed reforms. It is urgent and necessary: Mahatma Gandhi’s statement that “the future of India lies in its villages” holds true even today, as about 70% of the population still resides in rural areas.
The Blog entitled CoVID-19, provides opportunity to Reboot Agriculture and Revive Rural Economy is very interesting, timely and nicely articulated with similar pandemic historical events. These are temporary dislocations and short-run turbulence impairing the growth of all sectors in the economy with severe implications on the livelihood of the poor as they lack adequate purchasing power to buy the requirements. Further, the destructive impact of Corona almost has frozen the commercial activities across the nation. I would like to share some of my views on the above topic:
1. The issue relating to Resettling migrating labour: Rural labor market in India has undergone remarkable changes over the years. There have been diversified opportunities for employment and hence migration from rural to urban. But due to COVID-19 pandemic there is reverse migration. Consequently, earlier tightened labour market, now all of a sudden loosened, labour supply increased manifold and collapsed wage rate, wages plummeting to the bottom. Unless agriculture is revitalized, the demand for labour will be sluggish. Given farmers distress and crisis, how to utilize the labour resources more productively in the rural areas is indeed a biggest challenge.
Here comes, various public intervention measures including the MGNREGS to address the problem. One of the salutary effects of MGNREGA on poor rural households is the drastic reduction in distress migration. In this regard, the point relating to utilizing the labours towards building community assets and watershed-based natural resource regeneration is very pertinent. But, one potential area is missing that need to be highlighted ie., rehabilitation of irrigation tanks especially desilting during this period. This is highly labour intensive providing ample employment opportunities.
2. In Karnataka, every village has an irrigation tank. Karnataka state had approximately 40, 000 tanks during the 1980’s. Tanks were the lifeline for the rural communities in terms of providing (protective) irrigation to crops, drinking water for humans and livestock, recharging groundwater, meeting other domestic needs, silt fertilization for crop production and maintaining overall ecological and environmental balance. But now, these tanks as common property resource are completely degraded and crumbled due to many reasons. An analysis of tank-irrigated area in Karnataka state reveals that area under tank irrigation is drastically falling exhibiting negative growth rate. Thus, Government should utilize labour force towards rejuvenating traditional water bodies like irrigation tanks, farm ponds, bore-well recharge pits, rainwater harvesting……..
3. Relating to assisting individual farmers, for instance small machinery for harvesting; along with transport and storage of Rabi season produce. Given current poor financial position of farmers, how can they invest on small machineries? Instead, arranging these support services on custom hiring basis is more appropriate. We need to encourage innovations in designing appropriate location specific machineries and tools which are female friendly.
4. Accelerating farm profitability is the pre-condition for raising wage rate in farm sector; not only wage rate, but also revival of economy itself; how to address this challenge?
5. Prime minister slogan of “doubling farmers income” remains a dream unless drastic structural changes are brought out in production, post harvesting, value addition and marketing segments. For instance, rice, sugarcane and wheat which occupied roughly 1/4th of total gross cropped area in the country, consumes 80 % of the total irrigation water leaving other crops starved. By using most efficient irrigation technologies like micro irrigation, 40-50 of water can be saved and enable higher productivity and income. But, why these technologies are not adopted is a mute point.
6. The blog addresses the supply side constraints critically, but how to stimulate demand for farm products, locally, nationally and internationally given the post pandemic scenario is missing and needs elaboration?
7. How to stimulate demand for farm products and restore supply chain in order?
There is huge and strong domestic demand for our farm products, but unfortunately the demand is choked and paralyzed because of lockdown. Further, the demand for agricultural products is influenced by culturally driven markets. For instance, the demand for coconuts, flowers and fruits is a function of religious functions, festivals, opening of temples, marriages and so on. Similarly, the demand for milk, vegetables and fruits depends on functioning of hotels, restaurants, hostels and so on. Further, the movement of commodities across borders both nationally and internationally is also restricted and the supply chain is broken. Processing firms are shut down and not able to procure directly from the farmers. The retails like MORE, Reliance, Big basket are not providing direct market linkage. , Presently, because of lock down markets have collapsed. Now, if this scenario continues how to cut down supply so that loss could be minimized. If normalcy triggers, how to augment supply and put supply chain in order is critical.
8. Adoption of ICT driven tools for developing quality data base
Our database relating to area, production, productivity, supply and demand of farm products from different users especially perishable is very weak. This has constrained farm advisory services relating to price forecasting, area restriction, procurement and so on. Thus, the data base has to be strengthened by concerned Depts by using ICT and Artificial Intelligence and Big data analytics to find solutions. Unless markets are liberalized and structural changes are brought out , agriculture is continue to suffer and farmers are exploited. Unless we improve purchasing power of farmers, the anticipated growth in GDP cannot achieve. Furthermore, strategies and action points need to be precisely indicated to handle the failure of monsoon and market.
9. Integration of farm and non-farm activities in rural areas through facilitation of producer companies; This is an emerging area with huge scope for employing rural youth, especially secondary agriculture.
10. Social corporate responsibilities: The agro companies input, processing and service sectors have been immensely benefited from the farmers. In turn, when farmers are in distress due to glut in the market, especially the current scenario of Corona, how many companies came forward and helped the farmers need to be pondered?
Overall, the Blog is thought provoking but the implications of post corona may be worst and these need to be highlighted like bankruptcies of financial institutions affecting agriculture lending, defaulting loans, huge increase in un-employment and worst downturn of economy.
Prof. N Nagaraj,
ICSSR National Fellow
nagaraj.nareppa@gmail.com
Excellent comments Prof Nagaraj.
Other comments particularly on 4Rs: Reforms needed to Reboot agriculture and Revive Rural Economy; and Natural Resources : Land ( soil + biodiversity) and water management are welcome…
Also, with it’s expertise and experience can India guide/lead the world in small holder agriculture through UN SDG??
Several readers have written to authors directly expressing their insights on the topic . Taking into consideration the recent reforms announced by the Indian Government some colleagues have also offered constructive suggestions on how to reboot small holder farming further and revive rural economy. Some of the major issues highlighted by GRSV Experts include:
1. Optimization of rural and urban labor market taking into consideration contribution of agriculture to total GDP and the population depending on various sectors..
2. Natural resources: land and water management, diversification of agriculture for agro-ecolgy/ecological balance, (integrated agri-horti-livestock-forestry system…)
3. The challenge of enhancing livelihood security for rural population (majority with average farm size less than 0.5 ha) and the need for integration of farm and non-farm enterprises for rural youth employment etc..
4. Enhancing productivity/profitability by optimizing inputs particularly water and nutrient (efficiency), rejuvenation of traditional irrigation/tank system, recycling of nutrients..
5. Sustaining (often disrupted) value chains: stable demand and supply chain for risk aversion (sustainable markets)
6. Reform Research and Extension systems and streamline/rationalize institutions, effective governance structure with committed leadership
7. Mission oriented , last mile delivery for much needed outcome and impact
8. Use of ICT, data base/big data analytics, AI, modern technology for precision/smart agriculture
9. Partnerships: public- private ( corporate social responsibility), multi-institutional ( including finance institutions) and global development partners
10. Analyse implications of post-covid down turn in global economy and identify niche for Indian agricultural products to promote export
More comments/suggestions are welcome on the above and other topics related to rebooting agriculture and rural prosperity..
Glad to see interest in the topic on challenges and opportunities of Covid 19 for Agriculture and Horticulture and allied areas.