PRESS RELEASES
October 15, 2006

October 15, 2006

Dr. Manmohan Singh
The Prime Minister

Dear Dr. Manmohan Singh Ji,

Our country is facing a serious an unprecedented agrarian crisis. The spate of suicides by farmers continues. Despite your recent packages worth thousands of crores to the “hot states”, the monthly counts of suicides have been increasing. The numbers of hungry and poor have steadily been rising and indebtedness of farming households is all-time deep and wide. The input-risk-return equation of the farming families has worsened, the farmer non-farmer divide has further widened and Naxalism is sprawling fast. The ongoing huge import of wheat and the projected shortfall of about 10 million tonnes in the current Kharif has further exacerbated the crisis. Being form a farmer's family, I am deeply moved by this situation.

I want to remind you that the NDA government led by Shri Atal Bihari Vajpayee had taken several serious steps for the welfare of farmers. I had executed all these efforts as the then Union agricultural minister. The drastic reduction in the interest rates on agriculture loans and starting a scheme to ensure a fixed income for the farmers were the few steps to ameliorate the conditions of the farmers. National commission on farmers was also set up during the same period on February 10th, 2004.

Now the Report of National Commission on Farmers is with the government. This Report of the National Commission on Farmers, is a very significant one mooting India’s first Policy for Farmers, provides a roadmap for not only alleviating hunger and poverty but also for revitalizing the agrarian economy “towards faster and inclusive growth of farmers’ welfare”. In particular, I find its following recommendations worthy of priority attention and action:

  1. Improve the economic viability of farming by enabling farmers to earn a minimum net income. Agricultural progress should be measured in terms of the net income of the farm families and not merely in million tonnes of agricultural commodities produced.
  2. In order to achieve sustained and comprehensive food security, a National Food Guarantee Act should be enacted which will empower the Nation to achieve nutritional adequacy and a hunger-free India. Other related recommendations such as, establishment of community food and water banks, integrated on-farm and non-farm employment and livelihood security are topical. This calls for the integration of the Food for Work, National Rural Employment Guarantee Programme and Bharat Nirman initiatives, specially bringing additional 10 million hectares under irrigation, and exploring the untapped potential of Eastern India - Eastern U.P., Bihar and West Bengal.
  3. Prime farm land must be conserved for agriculture and should not be diverted for non-agricultural purposes. The compensation provisions of the Land Acquisition Act should be reviewed and made pro-farmer. The degraded lands should be improved and rejuvenated both by the public and private sectors and after careful matching of the need of the industry could be allocated for SEZs to bring a harmony between agricutlre and industry sector.
  4. The Second Green Revolution will be realized essentially through increasing sustainability and productivity of rainfed areas (in addition to the defending of the gains and further extending the gains in irrigated areas). In the era of knowledge economy, gene economy, e-economy and e-governance, science and technology-led transformation of agriculture, especially the emphasis on precision agriculture in rainfed agriculture, is the need of the hour. Against this, unfortunately, there is a general fatigue in science and technology and mismatch between the human resources development and their employability.
  5. Investment in agricultural research and technology development in India is far below the required level. Each student should be an entrepreneur and the formal and non-farmal education in Agricultural Universities should be revamped to enhance the employment opportunities of farm graduates and other youth taking to farming. A greater emphasis is needed for vocational training for appropriately tooling and retooling the farmers of the new generation.
  6. The severe slippage between the consumer and producer prices should be drastically curtailed, if not eliminated. The Minimum Support Price should be fixed at Cost (C2) plus atleast 50 per cent of the cost, which should be made universal. Simultaneously, the PDS should also be made universal and its food basket should be enlarged to include coarse grains and pulses. The CACP should be made autonomous and a statutory body.
  7. There is a need for a long-term agricultural credit policy and the role of NABARD and cooperatives should be reviewed and analysed for timely and adequate flow of formal credit to the farmers. An interest rate of 4% on agricultural loans and an Agricultural Risk Fund and a Price Stablisation Fund have been recommended to insulate farmers from crops failures due to natural calamities and failures in markets.

You will agree with me that the various recommendations made by the NCF are of tremendous importance for improving agrarian economy of the country, on which the majority of our people depend. Therefore, there is a need for building a national consensus on implementation of the recommendations in a judicious manner. I had already demanded an all party meeting on this issue few days back. However there is no response on it hence this letter. I urge you to kindly call an all-party meeting to foster the national commitment and to launch a national movement to bring about the desired growth with social justice.

With profound regards,

Thanking you,
(RAJNATH SINGH)



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