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Liberalisation hurt farm sector growth, says IEG
BS Agriculture Editor in New Delhi |
February 05, 2003 14:57 IST
The millennium study on the state of farmers has concluded that economic liberalisation has impeded agricultural growth in the absence of investment in rural infrastructure.
Liberalisation focused primarily on price-related issues even as public investment in agriculture continued to drop, it said.
The broad inference drawn from the 26 studies comprising the millennium study, which has been compiled by the Institute of Economic Growth, is small and marginal farmers and landless labourers need to be involved in capitalising on increased export opportunities.
"Farmers are generally competitive in the cost of production, but serious disadvantages follow from poor provisions for infrastructure," the report maintains.
However, the study refers to “compelling evidence” that institutional and policy support received by farmers is weak, undependable and indifferent towards backward areas.
"Serious problems are involved in the administered price policy, which does not balance interest of producers and consumers," the IEG report says.
Though new technology has been evolved in the field of horticulture, its adoption remains poor due to inadequate linkage of farmers with the market, it adds.
The studies relate broadly to the analysis of issues like trade liberalisation and globalisation, terms of trade, cost of cultivation and farm incomes, land and water resources, agricultural credit, input management, policy and organisational aspects, technology generation and extension, diversification, capital formation and rural infrastructure, macro policies, and the role of non-governmental organisations.
The studies have been conducted by eminent economists.
At the aggregate level, the report points out, there is no empirical evidence to show the economic condition of the farm sector has deteriorated in the post-green revolution era. But, there are classes and regions that have witnessed adverse changes in income, it says.
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