The Finance Minister, GOI, while presenting Budget in Parliament on 16th February, 2009 praised farmers as heroes. He has further stated that “real heroes of India’s success story were our farmers. Through their hard work, they ensured “food security” for the country. With record procurement of 22.7 million tonnes of wheat and 28.5 million tonnes of rice for our Public Distribution System in 2008, our granaries are full. During this four year period, the annual growth rate of agriculture  rose to 3.7 per cent. The production of food grains increased by about 10 million tonnes each year to reach an all time high of over 230 million tonnes in 2007-08”. But his praises failed to reflect in increased allocations to farm sector. Proposed increase in budget allocation for Agriculture is a megre 1.6% which does not even take care of estimated price raise next year, which means that the budget allocation is less than the allocation in the current year in real terms. In this context it is appropriate to create awareness among farmers as to how the GOI failed in fulfilling its promises made to farmers in 2008-09 Budget and paltry allocations made in 2009-10 Budget.

AGRICULTURAL CREDIT

“for 2008-09, I propose to set a target of Rs. 2,80,000 crore”. It is disheartening to observe from status of implementation reported in 2009-10 Budget that all Banks viz., Co-operative Banks, RRBs and Commercial Banks put together achieved only an amount Rs. 1,36,586.52 crores as against a target of Rs.2,80,000 crores (49%) during 8 months period of peak Kharif and Rabi seasons. Funds released under Prof. Vidyanathan Committee recommendations for strengthening financial base of Primary Agricultural Co-operative Societies (PACS) were not passed on to them. Similarly the regional rural banks and commercial banks suffered cash flows due to non release of funds by GOI under Agricultural Waiver & Debt Relief Scheme-2008. Consequently the farmers were driven to borrow funds from Private Money Lenders by paying exorbitant rate of interest. GOI is solely responsible for the muddle.  

The Share of Small Agricultural Loans Rs.25,000/- and below reduced from 49.60% in 1985 to 11.7% by 2007.  An amount of Rs. 22,979/- crores was provided to small loans during 2006 under 1,78,00,000 loan accounts, whereas 50,969/- crores provided to big loans under 7,300/- loan accounts during correspondence period. GOI is alone responsible for the muddle.

ACCELERATED IRRIGATION BENEFIT PROGRAMME

It was proposed in 2008-09 Budget that “The outlay for 2007-08 was Rs.11,000 crore with a grant component of 3,580 crore. These are being increased in 2008-09, and the estimated outlay is Rs.20,000 crore with a grant component of Rs.5,550 crore. But, status of implementation report exhibit that “Budget outlay provided for this programme including additional funds provided by way of second supplementary demands, is Rs.6,600 crore for this year. Grant to the tune of Rs.4,122.97 crore has been released under AIBP during 2008-09 upto 31st December, 2008”. The failure in providing promised funds resulted non completion of ongoing Irrigation Projects to bring additional area into cultivation.

RAINFED AREA DEVELOPMENT PROGRAMME

It was promised that “the rainfed area development programme has been finalized and will be implemented in 2008-09 with an allocation of Rs.348 crore. Priority will be given to those areas that have not been the beneficiaries of watershed development schemes”. But the status of implementation reported in 2009-10 Budget indicates that only Rs.5 crores is provided and no amount has been spent. This programme has direct bearing on the economic conditions of farmers. Neglect of this programme exhibits as to how the farmers who are praised as heroes made as zeroes, by GOI.

MICRO IRRIGATION

It was stated that “I propose to allocate Rs.500 crore for the scheme in 2008-09 with a target of covering another 4,00,000 hectare”. But status of implementation reported in 2009-10 budget indicate that an amount of Rs.321.60 crore only has been released to 11 States during 2008-09 upto December, 2008.

SETTING UP SOIL TESTING LABORATORIES

It is stated in 2008-09 budget that “500 soil testing laboratories will be set up in the public and private sectors during the Eleventh Plan period with Government assistance of Rs.30 lakh per laboratory. In addition, I propose to make a one-time allocation of Rs.75 crore to the Ministry of Agriculture in order to provide one fully-fitted mobile soil testing laboratory each to 250 districts of the country before March 2009”. But the GOI has conspicuously diluted, diverted and stated in its status of implementation report as “the newly formulated scheme “National Project on Balanced Use of Fertilizer” now renamed as “National Project on Management on Soil Health and Fertility” has been approved by Government in June, 2008. Administrative approval of the scheme was issued in August, 2008 and the guidelines of the scheme have also been circulated to all the States/ UTs for implementation of the scheme. The existing RE budget provision of Rs.19.98 crore for 2008-09 is expected to be utilized during the year”. It is observed from the above statement that funds allotted for such an important programme has been callously ignored and not spent. This results further degradation of soil which has direct bearing on production of various agricultural commodities.

PLANTATION CROPS

It is informed in 2008-09 budget that “The Special Purpose Tea Fund set up last year for re-plantation and rejuvenation will be provided Rs.40 crore in 2008 09. I propose to provide funds for similar support to other plantation crops such as cardamom (Rs.10.68 crore), rubber (Rs.19.41 crore) and coffee (Rs.18 crore). A crop insurance scheme for tea, rubber, tobacco, chilli, ginger, turmeric, pepper and cardamom will be introduced next year”. It is disheartening to observe from status of implementation reported in 2009-10 budget that no funds are spent under any of the captioned promised programme.

ONE TIME GRANT TO THE TEA RESEARCH ASSOCIATION

It is stated in 2008-09 budget that “I propose to make a special centenary grant of Rs.20 crore to the Tea Research Association”. Again no funds have been spent under this programme as per status of implementation reported in 2009-10 budget.

AUTONOMOUS NATIONAL INSTITUTE OF PLANT HEALTH MANAGEMENT

It was promised in 2008-09 budget that “the National Plant Protection Training Institute at Hyderabad will be converted and upgraded into an autonomous National Institute of Plant Health Management with budgetary support of Rs.29.4 crore”.  Status of implementation reported in 2009-10 budget exhibit that no funds have been spent under the programme.

WEATHER BASED CROP INSURANCE SCHEME

It is stated in 2008-09 budget that “The Weather Based Crop Insurance Scheme that is being implemented as a pilot scheme in selected areas of five States will be continued. I intend to provide Rs.50 crore for this purpose in 2008-09”. Status of implementation reported in 2009-10 budget indicate that except issue of notifications no funds have been provided or spent under the scheme.

ALTERNATIVE METHODS FOR PROVIDING FERTILIZER SUBSIDY

It is proposed in 2008-09 budget that “Government will continue to provide fertilizers to farmers at subsidized prices. Government is examining proposals to move to a nutrient based subsidy regime and alternative methods of delivering the subsidy”.  Status of implementation reported in 2009-10 budget indicate that “Department of Fertilisers proposes to have alternative strategies firmed up within the current financial year so that decisions for implementation could be taken at least in the next financial year”. During current year no sincere efforts are made to honour the commitment made in the 2008-09 budget and no farmer is hopeful that it will be considered in financial year 2009-10.

CO-OPERATIVE CREDIT STRUCTURE

It is stated in 2008-09 budget that “The Prof. Vaidyanathan Committee’s report on reviving the short-term cooperative credit structure is under implementation in 17 States. So far, a sum of Rs.1,185 crore has been released by the Central Government to four States. I am happy to report that the Central Government and the State Governments have reached an agreement on the content of the package to implement the Prof. Vaidyanathan Committee’s report on reviving the long-term co-operative credit structure. The cost of the package is estimated at Rs.3,074 crore, of which the Central Government’s share will be Rs.2,642 crore or 86 per cent of the total burden”. Status of implementation reported in 2009-10 budget indicate that “As on date, 25 States have signed the Memorandum of Understanding with Government of India and NABARD for implementation of the revival package for Short Term Cooperative Credit Structure. Rs. 4,970.37 crore has been released to NABARD. The package for revival of the Long Term Cooperative Credit Structure is being finalized”. 
Cooperatives extensively cater to the credit needs of agriculture. When  the   cooperatives  fail  to  function  as  cooperatives,  the  credit  flow  will  be  chocked  and  farmers  face  innumerable   problems. For the last several years the Committees headed by  Sri CHAUDHRY BRAHM PRAKASH, Sri JAGDISH KAPOOR, Sri VIKHE PATIL and Sri V.S. VYAS made elaborate recommendations for strengthening Co-operatives. The slackness of GOI in implementing the recommendations resulted acute crisis in Co-operatives and failed to cater to the needs of agricultural credit. Prof. Vidyanathan submitted report on “Revival of Credit Co-operatives” during 2004 for providing a financial assistant of Rs.14,839 crores which will be shared by GOI (53%-grant by GOI), State Government (31%-Soft loan by GOI to State Government) and Co-operative Credit Structure (CCS) (16%-Soft loan by GOI to CCS). It is observed from status of implementation reported in 2009-10 budget that as against a package of Rs.14,839 crores only an amount of  Rs. 4,970.37 crore has been released to NABARD during 5 years period. Even today total funds released to NABARD have not been passed on to Primary Agricultural Co-operative Societies on one pretext or the other. The farmers are of the view that the GOI has miserably failed to implement short term Credit Package and they have no hopes that long term credit package will be implemented during this decade. The GOI is solely responsible for the muddle and driving farmers to Private Money Lenders for their agricultural credit needs at exorbitant rates of interest.

DEBT WAIVER AND DEBT RELIEF

The FM stated in 2008-09 budget that “Having carefully weighed the pros and cons of debt waiver and having taken into account the resource position, I place before this House a scheme of debt waiver and debt relief for farmers”. It is observed from status of implementation reported in 2009-10 budget that “The Scheme of Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) 2008 for farmers has been implemented by its due date 30.06.2008. The total debt waiver/debt relief is Rs.65,318.33 crore covering 36,877,818 farmers (provisional figures). The 1st installment of reimbursable claims of the lending institutions under the Agricultural Debt Waiver and Debt Relief Scheme, 2008 of Rs. 25,000 crore has been released to the Reserve Bank of India”.

          As against Rs.65,318.33 crores waived under the scheme, Rs.25,000 crores only has been released to the Reserve Bank of India. This amount also has not been passed on to respective banks before Kharif and Rabi seasons. The Agricultural Credit Institutions suffered Cash Flows and could not provide credit to farmers and achieve targets fixed for the purpose. The GOI is solely responsible for the muddle.

CONCLUSION :

The objective of ‘Inclusive Growth’ envisaged in the 11th Five Year Plan is ‘reduction of hunger and poverty, the improvement of rural livelihoods and human health and facilitating socially equitable, environmentally and economically sustainable development.’ But the programmes and the schemes planned for fulfilling these objectives are given paltry sums in farm sector.       
Non implementation of promises made in the Parliament is a very serious matter and exhibit the failure of attention of Parliament Members in the matter. Majority of our Parliament Members hail from rural and agricultural background. Farmers realized that they make several promises, while contesting elections and completely forget to honour their promises and protect farmers’ interest. Farmers also opine that Accountability and Liability is lacking in fulfilling responsibilities on the part of policy makers and bureaucrats. The farmers’ organizations and farmers are of the view that it is the time to raise their voice and bring injustices meted out by farm sector before Political Parties and Politicians contesting in the ensuing Assembly & Parliament Elections–2009 and convey that they exercise their vote in favour of Political Party which includes farm sector demands in the election manifesto and ensure to implement the same. The farmers organizations and farmers also propose to launch “CLARION CALL” programme from 16th March, 2009 through out the Country to create awareness among public, particularly farmers.

	P.V. Subbaiah Choudary,
	Advisor,
	Consortium of Indian Farmers Associations (CIFA),
	Flat No.209, Vijaya Towers,
	Shanthi Nagar, Hyderabad – 500 028.
	Ph : 040-23319643