The just released figures on GDP growth gives the lie, as one might be incorrectly tempted to conclude, to the widely held view that all is unwell on the farm front. Then farm sector’s contribution to the overall 9.3% GDP is 9.3%. What does the just released figures signal? By the admission of the finance minister himself, the growth in the farm sector has been contributed by horticulture and non-cereal crops, like spices, jute etc. Is this reason enough to rejoice? Look at what is happening on the grain front and the general developmental trajectory.
The latest information by the National Sample Survey Organisation’s (NSSO) has found that 43.42 million of the estimated 89.35 million rural farmer households, that is 48.6 per cent, are indebted. The cutoff limit for a farmer household to be classified as indebted was Rs 300 at the time of the survey. Now, compare this with the farmer-baron of Punjab, who drives around in Mercedez. The most important finding of the survey was that UP, Andhra Pradesh, Maharashtra, West Bengal and Madhya Pradesh had more than 50% of the indebted rural farm households, with Andhra Pradesh at the peak at 82%. Contrary to the popular belief that Kerala being a socially advanced state, it was a very great revelation that the state had a very high percentage, as much as 64.4%, of rural indebted households. In fact both Kerala and Punjab, with 64.5% rural indebtedness, are on par.
This simply shows that contrary to what the agricultural messiahs and the mandarins in New Delhi would have us believe, the impact of the so-called green revolution has been very marginal on the poor farmer. Punjab is the cradle of the so-called green revolution, while Kerala is home to world’s most prized spices like black pepper and cardamom and Andhra is the granary of the south.
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