The U.P.A. Government at Centre and Congress Government in Andhra Pradesh repeatedly claiming that their Governments are Farm & Farmer centric, implementing innovative development programmes for accelerated growth in Farm Sector and improving economic conditions of farmers. Dr. Manmohan Singh, P.M. of India, while addressing the nation on 15th August 2007, stated that “Farmers are the backbone of our Nation. Unless they prosper the Nation cannot prosper. I reassure our farmers that their welfare lies at the core of our concerns”.  Dr. Y.S. Rajasekhar Reddy, C.M. of Andhra Pradesh, again and again, particularly in the campaigns of ensuing Parliament and Assembly Elections and recently at Chevella on 25-03-2009 while addressing the gathering claimed that he has implemented all promises made for making the State as Harithandhra Pradesh and initiated several steps to stop farmers’ suicides. But the statistical data exhibit that farm sector achieved negative growth under several parameters and suicide deaths of farmers have increased and registered at 2,859 from 2004-2009. Suicidal deaths assessed by farmers’ organizations are above 6,000.  The help lines opened for providing relief to families of deceased farmers are not functioning. The Sub-Committee formed to provide relief to families of deceased farmers never visited them. Funds intended for providing relief have not been reached to the affected families. It is appropriate time to sensitize farmers on the growth achieved in farm sector and present the same before prospective candidates contesting in the elections and question on the injustices meted out by farm sector particularly farmers. This Article analyses and exhibits the failures of Governments in implementing farm and farmers’ development programmes under various branches of farming.

The share of Agri Sector in National Income sharply declined by 2/3rd from 55% in 1950s to 18% now. Rural population dependant on agriculture, however, declined only marginally and now stand at about 60%. The average growth rate of agri sector is revolving around 2% during the last few years. If we take into account population growth in rural areas there is near stagnation of per capita real income of those dependant on agriculture while those in other sectors doubled and trebled. This has resulted in wide disparity in rural and urban per capita incomes. Periodical surveys of NSSO on rural and urban household expenditure also confirms this widening disparity process.
Sri Y.V. Reddy, farmer Governor RBI on 10-10-2007 while participating in a programme in Washington observed that debt burden alone is not responsible for farmers’ suicides. He has also observed that we have no proper machinery to tackle natural calamities, provision of quality seed, fertilizers, pesticides, electricity and irrigation facilities.
The following paragraphs analyze failures of A.P. Government in honouring and implementing promises made under various branches of farming and particularly farmers.

The International, National Research Institutions and Commissions appointed for the Welfare of farmers emphasized the need of upgrading soil health. There are 1.2 crore farm holdings in the State. The statistical data regarding soil tests carried out by Agriculture Department exhibits achievement is only below 1%. Absence of adequate agri extension services resulted use of excessive chemical fertilizers and not following crop rotations. Consequently soils are badly degraded and needs immediate treatment to rectify and retain soil health. Special programmes promised for improving soil fertility have not been fulfilled.

Seed plays crucial role in increasing agriculture production along with maintaining quality of agricultural produce. Usage of sub standard and spurious seed resulted stagnation in the yields. National, International and various Commissions appointed for development of agriculture (including Prof. M.S. Swaminathan Report) suggested 100% seed replacement to enable to increase productivity and provide food security to the Nation. Certified seed replacement statistical data exhibit that seed replacement of below 10% is achieved. The farmers are made to go round various offices for seed and stand in long queue, agitated for not providing seed, involved in Police Lathi charge and admitted in the hospital for treatment. Farmers confronted similar situations in the case of fertilizers and other inputs. The farmers are of the view that Policy Makers miserably failed in honouring the promises made to farmers.

Provision of Credit plays vital role in timely completion of agricultural operations by farmers. An extent of 3 crore Acres is under cultivation in the State, 1 crore acres under irrigation sources and 2 crore acres under rainfed conditions. Based on scale of finance fixed for short term production loans, Unit costs fixed under medium and long term loans, credit requirements under allied sectors viz., Poultry, Dairy, Sheep, Fisheries etc.  the banks are expected to provide about Rs.50,000 crores towards agricultural credit. The statistical data exhibit that all banks put together provided 20% to 25% credit needs of farmers. The balance 75% to 80% is provided by Private Money Lenders at exorbitant rate of interest. Thus the inability of Government to provide adequate institutional agricultural credit thrown the farmers into clutches of Private Money Lenders.  The Co-operatives which were extensively catering to the agricultural credit needs of farmers are now sick and unable to come to the rescue of farmers due to political erosion into autonomy of those organizations. As per RBI guidelines the banks are expected to provide 40% to priority sector out of their total lending’s, of which 18% should be provided to farmers under direct agricultural loans. Unfortunately none of the banks, except 2 or 3, achieved the target of 18%. The unspent target under this head is being diverted and credited to Rural Infrastructure Development Fund (RIDF) of NABARD. It is disheartening to note that funds diverted to RIDF are being spent for Building Hospitals, Schools and laying Roads. The farmers are expressing their anger over the way the funds intended for farmers are diverted for the benefit of contractors etc.

The farmers are also critical over implementation of Agricultural Debt and Relief Scheme-2008, where under the farmers whose holdings are below 5 acres (2 hect) are eligible for relief. Economic conditions of a 5 acre double crop wet land farmer of Coastal Districts cannot be compared with 5 acres of rainfed land farmer of drought prone district of Ananthapur. Further, the agricultural loans obtained before 31-03-2007 are alone eligible under waiver scheme for relief. A farmer who has borrowed Kharif loan during 2006 and repaid before 31-03-2007 and availed fresh Kharif loan after 01-04-2007 is not eligible for relief. The tenant farmers also are not covered under the scheme. The interest rebate offered by Government is applicable to the farmers who repaid their loans before due date. The farmers who suffered crop losses due to natural calamities and fail to repay loan in time is denied rebate. Further, he is also denied 3% rate of interest. The farmers are of the view that these anomalies could have been sorted out if policy makers evinced interest on the promises made to farm sector and consulted farmers and farmers’ organizations.

During the last decade, farmers suffered huge crop losses due to natural calamities and their debt burden is enormously increased. Neither the crop insurance schemes nor reliefs announced under drought and flood relief schemes rehabilitated the distressed farmers. While average debt burden of each farmer in the country is assessed about Rs.15,000/-, in the case of Andhra Pradesh it is Rs.24,000/-.  The prices of agricultural commodities are not increased on par with the prices of various agricultural inputs. The debt relief scheme implemented by GOI during 2004 has not provided any relief since a farmer whose loan was rescheduled under RBI package was required to pay Rs.27,866/- for a loan of Rs.10,000/-. The relief schemes announced have helped the banks to clean their balance sheets but not the farmers since they were evolved without involving farmers’ organizations and farmers. The farmers affected by “NISA”, “KHAIMUKHI” cyclones have not been provided adequate relief.

MSP plays crucial role in obtaining remunerative price by farmers for agricultural commodities. The computation of costs regarding family labour and bullock power and other parameters adopted have no relevance with the cost of cultivation actually incurred by farmers. Further it is observed that data pertaining to previous years is adopted for current year without giving cognizance to the increase in the cost of inputs. A.P. Government is claiming that it is responsible for fixing higher MSPs for agricultural commodities ranging from 30% to 50%. The farmers are annoyed that the increase in MSPs for various agricultural commodities have no relevance with the increase in the prices of inputs which ranges from 300% to 400%.

Market yards are managed by committees nominated by the Government with local Politicians, traders and middle-men affiliated to the party in power. No proper accounting of arrivals and sales. Non functioning of electronic weighing machines. Market yards’ labour domination results excess expenditure and waste of produce. Traders form into syndicate and create an atmosphere for distress sale of commodities. Instant payment is not made. The farmers are who wish to have instant payments are required to pay a months’ interest @ 24 to 36 percent. There are no proper storage, cold storage & pledge loan facilities. Commission is collected at 8 to 10 percent. Receipts are issued on white papers. Cess collected out of sales not properly accounted and it is direct loss to the Government. In the name of grading and quality 1 to 2% cut is imposed on quantity of the produce. No Scientific equipment for grading or testing quality of produce. No waiting or resting facilities to farmers in the market yards. Farmers are sore over the situation prevailing in market yards in the State and blame policy makers for this state of affairs. The farmers are also critical over failure of government in implementing promises made in all branches of farming.

Farmers need assured and remunerative prices for their survival. Today input costs are rising and output prices are falling. The uneconomical nature of farming is the single most important cause of the agrarian crisis. Nearly 70% of our population is still in rural areas with farming as the principal source of livelihood. The approach paper to the XI Plan approved by the National Development Council mentions, “economic growth has failed to be sufficiently inclusive, particularly after the mid-1990s. Agriculture lost its growth momentum from that point on and subsequently entered a near crisis situation, reflected in farmer suicides in some areas.” Unless the Country regains its lost momentum in this sector, there will be widespread agrarian distress and the prospect of reverting to a ship-to-mouth existence.

The first Prime Minister of India Pandit Jawaharlal Nehru stated that “Everything can wait… but not agriculture.” Unfortunately, in practice, agriculture alone is made to wait and its outcome is acute crisis in the Farm Sector. The policy fatigue and impaired governance contributed for the present dismal State of Agriculture in the Country. The working groups constituted by the NDC Sub-Committee on agriculture and also National Farmers Commission were critical over the situation explained above.

In the above back drop, the farmers are not in a position to believe false promises being made by policy makers and expressed their discontentment through “Rythu Sankharavam” on
16-03-2009 by blocking Roads, stopping Trains etc. in several districts in the state. The farmers are also programming to highlight the injustices meted out by them before Politicians contesting in ensuing Parliament and Assembly Elections and demand definite commitment from them to work for accelerated development of farm sector and improvement in economic conditions of farmers.