CONSORTIUM OF INDIAN FARMERS ASSOCIATIONS, NEW DELHI
                     (CIFA NATIONAL PADDY COMMODITY COMMITTEE DEMANDS)
 
  1.  MINISTRY OF AGRICULTURE & CO-OPERATION  
 
Issues
Present Position
Demand by CIFA

a) Fixing of MSP for Paddy

1) Recommendations of various Committees viz., Shri. L.K. Jha, Dr. Ashok Mitra, Dr. S.R. Sen, Prof. C.H. Hanumantha Rao and Prof. Alagh under costs of cultivation scheme have not been implemented while computing costs of cultivation by field assistants at grass root level.

2)  No transparency and Farmers involvement in collection of data.

3)  Previous years data is considered for fixing current year MSP without taking into consideration the cost index.  
4) The methodology followed, regarding imputing family labour, rental value of land, interest on capital depreciation on fixed assets and agricultural machinery, cost of transportation, marketing charges and storage is not in conformity with recommendations of various Committees and working against the interests of farmers.
5) There is no relevance between the costs actually incurred by Farmers, the data obtained by field assistants, computed by Agricultural Universities, State Governments, Directorate of Economics & Statistics, analysed by Commission for Agricultural Costs and Prices and finally fixed by GOI.
6)  The MSP fixed has no relevance with costs of cultivation actually incurred by Farmers and fixed by GOI.
7)  The MSP fixed by GOI is only Political Support Price (PSP) but not based on the data obtained from various sources.

8)  According to Govt. sources Rs.1 hike in diesel increases the cultivation cost by Rs.100 per hectare and diesel prices have risen 13 % since last year.

9)  MSP is being announced after the farmers commence   Kharif and Rabi sowing operations and farmers have no choice of crop selection.

10)  MSP for Paddy fixed by GOI do not adopt the same parameters as adopted in fixing industrial product prices and Government employees salaries.
11) The production cost of Paddy is estimated at Rs. 1000/- per qt. during the year 2008-09. As per recommendations of National Commission on Farmers headed by Prof. M.S. Swaminathan, the MSP be fixed by taking all costs incurred by farmer by adding minimum 50% of it (C2+Minimum 50% of it).
12) Thus MSP is required to be fixed at Rs.1500 per qt. (Rs.1000+50% i.e. 500), where as the Government has fixed only Rs. 850 per qt. + Rs.50 bonus.

1)  Recommendations of various Committees under Costs of Cultivation Scheme be implemented and all costs actually incurred by farmers taken into consideration while computing costs by field assistants at grass root level.

 2) The Whole system be reviewed, transparent procedures, methodology evolved and CACP be strengthened by inducting more Farmers representatives including women by granting autonomous status.     

3) MSP should be all costs actually incurred by Farmers by adding minimum 50% of it i.e. (C2+Minimum 50% of it) as recommended by National Commission on Farmers headed by Prof. M.S. Swaminathan.

4) MSP be increased proportionately whenever agricultural inputs prices are increased by taking into cost of index into consideration as being followed in the case of salaries of employees of various sectors.

5)  MSP for Paddy be fixed based on the criteria adopted for fixing price for industrial  products, salaries, TA & DA of Govt. employees (Cost Index).

6)  MSP be fixed and announced 6 months before Kharif and Rabi harvests reach markets as recommended by experts groups.  

7) CIFA demands MSP of Rs. 1500 per qt. (Rs.1000 +50% i.e. 500) for Paddy (Common) and Rs.1650 per qt. (Rs.1100+50% i.e. 550) for Paddy (Grade-A).

b) (i) Purchase (Procurement) of Agriculture produce affected by floods etc.,









(ii)  Purchase of Paddy by Food Corporation of India (FCI).

1)  When the Crops are affected by floods, the colour of the produce will be affected

2)  Government agencies i.e. FCI and Market Yards are reluctant to pay the MSP fixed to the concerned crop.

3)  The State Governments are approaching GOI of India for purchase of produce affected by floods.

4)  This procedure is time consuming and Farmers are resorting for distress sale of produce.

5) Neither the govt. of India nor the State Governments are coming to the rescue of affected farmers.

i)  Food Corporation of India is expected to purchase Paddy from Farmers. But in practice FCI is purchasing Rice from millers instead of Paddy from Farmers. The middle men are benefited in the system.

1) Mandatory provisions be evolved, FCI Acts and relevant Rules amended to purchase   produce affected by floods.

2) The state Governments should amend marketing committees, Acts and Rules facilitating purchase of produce affected by floods.

 

 
 
i) Food Corporation be directed to purchase Paddy from Farmers.  
c) Production of certified Paddy Seed by public and private institutes & Seed replacement

1)  Supply of certified Paddy Seed from public institutes and private companies account for about 8 percent. The remaining 92 percent requirement is met either by storing own seed or by farmer-to-farmer exchange.  Analysis of certified/ quality seed distributed reveals that not much progress has been made. 

2) The International & National, Research Institutions and Commissions appointed for the welfare of farmers emphasized    the need of 100% replacement of seed for improving quality & quantity of yields. This item of work is required to be tackled on war-footing basis.

3)  State governments have no sufficient resources to supply quality seed to farmers.

1) Production of certified Paddy Seed by public and private institutes be increased.

2) A specific action plan be evolved for 100% seed replacement.

3)  Resources be provided by Government of India

4) Area specific, high yielding and stress resistant varieties be produced and distributed at affordable prices.

5) Establishment of seed bank to ensure availability of seeds at the time of natural calamities

7) Involving farmers' organization, NGOs and other private organizations with incentive package for seed production

8)  Promotion of Seed Village Scheme

9) Training of agricultural graduates, progressive farmers and seed societies for quality seed production.

d) National Policy on Soil  Health

1)  Consequent on use of excessive chemical fertilizers and not following rotation of crops, the soils are badly degraded and needs immediate treatment to improve the quality and quantity of yields. The International, National, research institutions and commissions appointed for the welfare of farmers emphasized the need of soil health.

2)  Budget allocations of Rs.75 crores made during 2008-09 for providing Mobile, soil testing laboratories is yet to be grounded.

1) National policy on soil health be evolved to rectify and restore soil fertility.

2)  Mobile soil testing laboratories be introduced and soil tests made at the fields in the presence of farmers.

3)  Soil health cards be provided to farmers.

4)  Quality micro nutrients be provided for balancing soil health.

e) Standardization of Organic Fertilizers & Extension of incentives on par with chemical fertilizers

1)  Vermi compost, Vermi wash, Organic manures and bio-fertilizers are manufactured by several small scale units without maintaining standards and quality.

2)  The farmers are put to crop losses due to adulteration and high prices.

3)  No specifications are fixed for manufacturing organic fertilizers.

1) Specifications and standards be fixed  for organic fertilizers.

2)  The incentives extended to chemical fertilizers be extended to organic fertilizers also.

f) Research  & Development

1)  The research and development failed to produced short term duration and drought and flood resistant varieties.

2)  No plan of action for producing required quantities of breeder, foundation and certified seed.    

3)  The rice productivity in India during 1999 - 2000 was 2966 Kg./ha., where as Asia and World averages were 3964 and 3895 Kg./ha. The average rice yield in China, Japan, Korea and Egypt are of 6350 Kg./ha.,   6702 Kg./ha.,  6592 Kg./ha.

1) Development and supply of High Yielding and Hybrid Varieties be ensured.

2) Development of Resistant varieties to stress, Brown Plant Hopper, Stem Borer and Rice Blast disease be ensured.

3)  Research on Integrated Pest Management be ensured.

4)  Development of storage structures and control of storage pests be ensured.

5)  Rodent control technologies be developed and implemented.

6) The research institutes should honour its primary responsibility and develop elite germplasm and release high yielding varieties regularly.
g) Transfer of Technology

1) Transfer of improved Paddy production technologies remain as most neglected component and consequently the benefit of improved varieties and production technology could not be harnessed.

2)  Dissemination of improved technologies from lab to land consumes long time and adoption by Farmers is not ensured.

1) Emphasis be given on a cropping system approach rather than a single crop development approach.

2)  Improved crop production technologies be propagated based on agro-climatic zones through demonstrations on Farmers fields and organizing training programmes for Farmers including women.

3) Quick dissemination of knowledge on improved technologies be ensured.

4) Aggressive transfer of production technologies be ensured through Frontline demonstrations and Block demonstrations involving SDA, KVKs, NGOs, SAUs and private sectors.

5) Bottom up approach of technology development and dissemination by involving farmers should be ensured.

6) ATMA concept of NATP project be extended to all the States and districts in the country.
h) Mechanization

1) Agriculture labour shortage is a major production constraint in completing sowing and harvesting operations in time.

2) Urban migration for better jobs and physical drudgery involved in culture practices driving away the workforce.

3) Traditional culture practices consume more man hours and also physical drudgery on the part of both labour and animals.

1) Innovative bullock and power drawn modern implements be invented and introduced for timely completion of sowing and harvesting operations.

2) The agricultural implements be provided with 75% subsidy without ceiling on subsidy amount.

3)  Agricultural implements be made available for customs service through village panchayats, co-operatives, self help groups.

i) Crop Insurance

1) The premium collected on crop loans ranges from 2% to 7%.

2)  All risks are not covered.

3) Procedures adopted for indemnifying losses are against the farmers interest. 

4) In the case of automobile and industrial sector actual loss is indemnified and in the case of agriculture 5 years average / threshold yield is adopted.

5)  The village is not adopted as unit.

6) The insurance claims are not settled in time and farmers are required to pay extra interest on the loans borrowed.

7) In other countries the premium is subsidized and farmers interest protected while indemnifying losses by extending financial support.

1)  The premium be reduced, subsidizing by Govt. as in the case of other countries.

2) Cumbersome procedures adopted for indemnifying losses be reviewed and crop losses indemnified as in other sectors and countries.

3) The crop loss claims be settled before the due date fixed for payment of loan. Interest if any payable after due date consequent on delay in settling claims be borne by crop insurance company.

4) Remote sensing technology be applied for settling crop loss claims in a time bound programme.

j) Food Corporation of India review of functioning

1)  The FCI Paddy procurement policies defer from State to State.

2)  FCI procuring Paddy directly from Farmers in the State of Punjab and Haryana, where as it is procuring Rice from Millers instead of Paddy from Farmers in the case of Andhra Pradesh and other States.

3)  No transparent methodology adopted in the process of procurement regarding Shrinken, Shriven & Immature (SSI) norms.

4)  There is no equipment for testing SSI norms.

5)  The manual testing adopted is biased. The traders are benefited and farmers are resorting distress sale.

6)  In the pretext of inferior quality the FCI and market yards are imposing cut of 1 to 2 kgs. per Paddy bag. Unilateral decision is taken without scientific quality testing equipment and the farmers are resorting for distress sale. 

1) CIFA demands procurement of Paddy directly from Farmers.

2) National Paddy Commodity Committee of CIFA  be consulted by FCI to create awareness among Paddy Farmers on quality norms and organize training programmes.

3)   Scientific equipment be introduced for testing SSI norms.

4)  Unilateral imposition cut of 1 to 2 kgs per Paddy bag be dispensed with and farmers prevented from distress sale.

5)  The FCI should provide warehousing, pledge loan facilities to enable farmers to dispose produce when he obtains remunerative price.

6) The existing norms viz., percentage of admixture, SSI,  moisture be relaxed.   

2.  MINISTRY OF COMMERCE

a)  To ban import of Rice without approval of Farmers Associations.

b)  Ban of export of Rice.

1)  Government is importing Rice which results fall in the Paddy prices.

2)  The Government importing Rice even though there was huge stock within the country.

3)  The import and export policies are arbitrary and are harmful to the interest of farmers.

4)  There is no long term policy of imports and exports based on supply and demand. 
5)  The present import and export policy is beneficial to traders but not farmers.

1)  Long term import and export policies be evolved based on demand and supply.

2) Government not to allow import of Rice without consulting and approval of farmers organizations.

3) Export of Rice be permitted when the procurement fulfills buffer stocks norms.
3.  MINISTRY OF FINANCE
a)  In adequate Agriculture Credit

1)  The total area cultivated under Paddy is estimated to be about 11 crore acres.

2)  The Costs of Cultivation per acre is estimated at Rs. 25,000/-.

3)  The total credit required for Paddy Farmers is estimated at Rs. 2,75,000 crores per annum.

4)  But statistical data exhibit that 1/3rd of Paddy Farmers alone are covered under Banks Credit. The balances depend on private lendings.   

5)  The scale of finance fixed for Paddy is ignored and the banks are resorting for under finance and driving Farmers for private borrowings.

1)  All Paddy Farmers in the Nation be provided with bank loans.

2)  The scale of finance fixed for respective crops be sanctioned and disbursed to the farmers.

3)  Micro Credit Institutions, Rice Mills and Post Offices be involved for providing credit the Farmers.   

b) Rate of Interest on Agriculture Loans

1) Different Banks are charging different rates of interest ranging from 7% to 14% on Agricultural Loans.

2) Lesser interest is charged on housing and Industrial Loans.

3) Agriculture is in priority sector and hence lesser rate of interest is required to be charged on Agriculture Loans.

4) The National Commission on Farmers headed by Prof. M.S. Swaminathan recommended 4% rate of Interest on Agriculture Loans.

5) The Banks are charging compound interest, service and other charges etc.

6) The banks are insisting no due certificates from farmers.

1) Simple rate of interest at 4% be charged on agriculture loans without collecting any service and other charges.

2) Instructions be issued to banks for not insisting no due certificates from farmers.

3) Adequate credit be provided to Paddy Farmers based on the scale of finance fixed.

4) The practice of charging higher rate of interest after due date be scraped in the case of agricultural loans.

c) Waiver of total loans on failure of two crops and interest on re-schedule loans.

1)  Failure of two consecutive crops either in dry or irrigated conditions will cause irreversible damage to the family of the farmer.

2) The agricultural activity is spread over long term and the farmers not only invest money but also their own family labour.

3)  It is not possible under any circumstances to recoup the loss. The Crop Insurances Schemes in place are against the interest of Farmers.

4) Re-scheduling of crop loans is not beneficial to the farmer as he can not increase the production or he will get 100% more price.

5)  Therefore the farmer cannot repay the losses sustained in two years. 

1) Agricultural debt waiver and debt relief scheme, 2008 has not provided anticipated relief to Farmers.

2) The total loans be waived by Government in the case of two successive crop losses.

3) Interest be waived in the case of one crop loss.

4.  MINISTRY OF IRRIGATION AND POWER

a)  Providing of irrigation facilities to dry land Paddy farmers in the country.

b) Free electricity to groundwater user Paddy farmers.

1)  55% of dry land Paddy farmers are dependent on rains are highly unpredictable and are causing immense difficulties to farmers.

2) Providing water to agricultural activity is a constitutional obligation of the government.

3) The farmers depending on groundwater are investing Rs.1.5 to Rs. 2 lacs. on bore-well and pump set  

1) All the Paddy lands in the country be provided with irrigation facilities.

2) The ground water user farmers be provided free electricity.

 
 
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