/24-7PressRelease/ - March 04, 2007 - The budget speech of Mr P. Chidambaram has made a good case for revitalizing the rural economy by restructuring the agrarian society. In this connection several steps have been taken by him including a substantial hike in the allocation for rural areas, steps to provide credit for the farmers through banks and need for making provision for quality seeds and making inputs for irrigation cheaper.
All these steps will certainly go a long way in improving the lot of farmers, but the important bottleneck of marketing will have to be addressed if the farmers are to get good return for their labour. It is no secret that at present middlemen who operate the Mandis or wholesale markets are making big gains by exploiting the producers on one hand and the consumers on the other.
By resorting to practices like hoarding they pay low prices to farmers and sell them at a high price by creating artificial scarcity. As a first step to help the farmers they should be given the freedom to decide to whom they should sell their produce. There is also need to ensure that farmer get inputs like seeds, extension service and fertilizers at his doorsteps.
One way to ensure this is the entry of corporate houses in retail trade .They can ensure that farmers get all the inputs required by him at reasonable prices and customers also get quality items at fair prices. For this there is need to set up chains of cold storages at the collection centers. At present about thirty per cent of total produce of vegetables, fruits is lost because of poor storage and transport facilities and absence of cold storages.
The absence of proper packages also acts as a disadvantage. In case these steps are taken our agriculture can again become profitable instead of leaving farmers at the mercy middlemen and weather gods. It is true that a substantial number of farmers depend on rains to water their fields, but their lot can be improved through supply of better technology it may include crops which require less water and introduction of sprinkler system. In many areas of Punjab farmers by giving up rice cultivation which requires lot of water with fruits and vegetables have improved their earnings as well overcome the problem created by water table falling continuously.
If the States and Centre combine their efforts with help from corporate houses the farmers can make fresh beginning which will make them happy as well as bring smile on the face of consumers by supplying them their products at reasonable prices. This will certainly call for reinventing the present system of State agencies doing the procurement through traditional mandis
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