Foodgrain output dips in 2015; Revival unlikely in 2016

Battling two extremes of drought and unseasonal rains in various states, agriculture sector faced a "difficult year" in 2015 resulting in severe distress for farmers and even suicides, while the food grain output is likely to decline for the second straight year in 2016.

The lower farm output also led to a sharp jump in prices of key kitchen food items like pulses, onions, tomatoes and mustard oil in 2015.

To salvage the situation, the government launched Rs 50,000 crore worth irrigation and soil health schemes and is all set to unveil a new insurance scheme and electronic agri-market in new year to ensure that the farmers earn 50% profit from produce.

"More districts were gripped by drought this year due to 14% deficient rains. Definitely, there will be some impact on agriculture production, but not to the extent that everyone was fearing at the beginning of the rainy season," Agriculture Minister Radha Mohan Singh told PTI.

The impact on farm output is likely to be minimal as the government has taken timely measures like seed and diesel subsidy among others to help farmers save crops, he said.

The Centre has sanctioned a drought relief package of Rs 7,898 crore to four states -- Karnataka, Chattishgarh, Maharashtra and Madhya Pradesh, and the decision on proposals of other six states will be decided soon, he added.

The country's food grains production fell by 4.66% to 252.68 million tonnes in the 2014-15 crop year.

ALSO READ: India's foodgrain output fell 4.66% in 2014-15

The fall was steeper (10%) in pulses at 17.2 million tonnes, which resulted in retail prices skyrocketing to over Rs 200 per kg. High dal prices also became a big political issue during the Bihar election.

High vegetable prices, including of onion and tomatoes, kept the government at toes. In contrast, low sugar prices continued to be an issue for the industry and the government as cane price arrears swelled to over Rs 21,000 crore.

Asked about the priorities in 2016, the Minister said the government will focus on reducing the cost of cultivation and ensure a profit to farmers through effective implementation of the Pradhan Mantri Krishi Sichai Yojana (PMKSY), National Agriculture Market and soon to be launched crop insurance scheme.

"We want to ensure farmers earn 50% profit over the cost of cultivation. Better seeds, balanced application of fertilisers, enhancing irrigation facilities, e-market for sale, and better crop insurance -- all this will help farmers to reduce the cost of cultivation," Singh said. 

Renowned agriculture scientist M S Swaminathan described the year 2015 as a "difficult year" for farmers and farming.

On the outlook for next year, he said, "There may be a short fall in view of the aberrant weather. Our agriculture has, however, gained sufficient resilience,"

Stating the major challenge that the sector faced was in pulses, Swaminathan -the father of green revolution said, "There is a short of pulses. In spite of the problems, our farmers have tried to produce as much as they can." The year 2015 began on a bad note for the farm sector as untimely rains in March-April affected Kharif crops of 2014-15 crop year (July-June).

This was followed by a bad monsoon, the lifeline of Indian agriculture as only 40% of the cultivable area is under irrigation.

The country witnessed 14% deficit in the south-west monsoon for the second consecutive year, prompting ten states including Karnataka, Chhattisgarh, Odisha, Maharashtra, Madhya Pradesh and Uttar Pradesh to declare drought in 287 districts.

Lesser rainfall during crucial July-September period not only hit some of the Kharif (summer) crops but also Rabi (winter) crops like wheat, which are being sown at present.

According to the first advance estimates, the food grains production in  Kharif season of 2015-16 crop year is likely to fall by nearly 2% at 124.05 million tonnes.

Although the government has not come out with its initial production estimates of Rabi crops, but the experts say there could be some impact as lack of soil moisture and deficient northeast monsoon has affected planting of wheat, oilseeds and pulses in the ongoing Rabi season.

With Indian agriculture still dependent on monsoon, the Agriculture Minister said the new crop insurance scheme will be launched in January, under which farmers will pay below 3% premium and get their settlement claims early.

Stating that electronic agri-market will be a game changer for farmers next year, Singh said, "As many as 250 mandis (wholesale markets) will be covered by next September, ensuring free movement of farm produce from one market area to another."

The Centre has kept Rs 175 crore to provide assistance of about Rs 30 lakh per mandi for the software and it has approved financial assistance for Gujarat, Maharashtra, Telangana, Jharkhand, and Chhattisgarh.

That apart, the government has decided next year to implement irrigation projects in 100 districts under the Pradhan Mantri Sichai Yojana besides promoting balanced use of fertilisers under the 'soil health card' scheme.

Asked if the government would promote genetically modified (GM) pulses and oilseeds to boost output, Singh said, "We will do whatever signal we will get from the Environment Ministry. We have a scientific regulatory body Genetic Engineering Approval Committee (GEAC) to take a call on these issues. We will follow whatever it says. I do not have any personal opinion on this." 

Singh, however, said the government is promoting pulses and oilseeds cultivation by enhancing minimum support price.

"2016 has been declared as the year of pulses and more focus will be on boosting production. Even research institutes have been asked to develop high-yielding varieties," he added.

At the fag end of the year, the Agriculture Ministry issued a Cotton Seeds Price (Control) Order to fix a uniform maximum retail price (MRP) from March on all cotton seeds including the genetically modified versions. It also decided to fix and regulate the seed value and licensee fee including royalty or trait value.

The order was hailed by the National Seed Association of India (NSAI), but Mahyco Monsanto Biotech India Ltd (MMBL) expressed disappointment over the decision.

In fact, MMBL had on December 19 filed a writ petition in the Delhi High Court challenging the order's certain provisions that seek to regulate the licensing of cotton seed technology.

Now, the NSAI also wants to join as 'Party' in this case as it favours full regulation of cotton seed price, including the trait fees and royalty.

Asked about the controversy over the government fixing cotton seed prices including that of BT cotton, Singh said, "This was a major policy decision taken in the interest of farmers. This is being challenged in the court, let's see what happens."

On pending bills, the minister said the government will push the Seed Bill, Pestcide Management bill, Agriculture biosecurity bill in the Budget session.

Asked about the government plans to address the farmers suicides issue, Singh said, "All schemes are being implemented to reduce the risk factors associated with farming. However, the state governments should speed up all programmes so that farmers do not commit suicides."

Swaminathan suggested the government to focus more on fundamental factors like soil health, seed production and pest management to boost production of pulses.

He also said the Centre should strengthen agri-research activities, establish single agri-market and implement the National Policy for Farmers without further delay.

Not only drought, the year 2015 also witnessed floods in states like Tamil Nadu, affecting farmers and farming activity.

Meanwhile, the agriculture's allied sector like dairy, animal husbandry, fishery and poultry provided a cushion to farmers in drought-hit states even as the number of suicides stood at 897 this year.

Animal Husbandry and Dairy Secretary Ashok Kumar Angurana said there has been significant growth in milk output in the country and going forward the government would focus on putting in place infrastructure and processing facilities.

"So, we plan to come out with National Dairy Plan-II with a focus on modernisation of dairy plants and processing facilities in 2016," he said.

Similarly, the government will focus on modernisation of the fishery sector to tap unexploited marine potential of 1 million tonnes in high seas, he added.