How
to get Lanka's Agriculture moving
The poor performance of the country's agriculture has been a factor
in the poor performance of the economy and high prices of food in
the country. Governments have recognised this in recent years but
have not succeeded in making a breakthrough. Now the Prime Minister
has invited an internationally renowned Indian economist to assist
in drawing up a blue print to "get agriculture moving".
Dr M.S.Swamina-than
is in the country to discuss issues with agricultural scientists,
economists and administrators to sort out the problems. His task
no doubt would be to give a broad master plan for agricultural development.
There are three broad issues that must be addressed. First, the
government must have a clear long-term vision for agriculture and
enunciate the principles it would follow. The country has lacked
a consistent set of policies with different government ministers
following contradictory principles. The conflict between consumer
and producer interests has been a significant factor in this. The
ill-considered views of international agencies that give impractical
soundings have added to the confusion. For instance, a World Bank
report concluded that the country had no comparative advantage in
the production of rice and many food crops and that therefore we
should shift to other more remunerative crops. This has left governments
with a lot of confusion in the formulation of policies. It is time
to come up with a clear vision for the country's agriculture. Dr.
Swaminathan with his clear thinking and immense knowledge of developmental
issues can lay out the principles of agricultural policy.
The second constraint
lies in the inadequate resources channelled to agriculture and consequently
a weak institutional capacity. The institutions serving agriculture,
including the extension services and research, have been neglected.
This is perhaps on the premise that with the lesser contribution
of agriculture to GDP, its significance is much less to development.
This false trend in thinking and resource allocation must be reversed.
There is a need to channel much higher resources for agricultural
research and extension, if the productivity levels of our agriculture
are to be enhanced. The third issue is closely related to the second.
The institutional capacity to effectively implement agricultural
policies has been weak. There is a need to strengthen these capacities.
It is a combination of correct economic and agronomic principles
together with an effective implementation capacity that could get
agriculture moving.
After 55 years
of institutional credit for agriculture we find that only a small
fraction of farmers in the country are able to access institutional
credit. High rates of default and political interference are at
the bottom of this problem. It is time to base agricultural credit
policies on sound economic principles and develop an institutional
capacity to deliver credit. It is vital that we develop credit policies
that increase the outreach and ensure sustainability of credit programmes.
Improvements in agricultural productivity and lower costs of production
are objectives that we must keep in mind. A more vigorous research
thrust, enhanced and effective credit and extension programmes and
considerable improvement in the channels for marketing of agricultural
produce are also vital. One last word: agricultural development
would also be assisted if the number of ministries serving agriculture
could also be reduced. The implementation of effective agricultural
policies requires a more rational basis of ministerial allocation.
We certainly
hope that Dr. Swaminathan would be forthright; that he would enunciate
the principles of agricultural policy that we should follow; recommend
ways by which the institutional structures serving agriculture could
be strengthened; how incentives could be improved and indicate a
long-term vision for our agriculture. However ultimately it is the
government, agriculturists, economists, administrators and the farming
community that have the responsibility to implement those principles
and get agriculture moving.
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