Agriculture is the backbone of India’s economy – so they say.

The sector employing

half of India’s workforce, however, contributes only 13 percent towards the country
GDP – a number which continues to fall through decades.

A dearth of innovation, basic infrastructure, and market connect; and India’s over-
dependency on monsoons has led to slowdowns and stagnation in the farming
sector.

Small and marginal land holding farmers, who constitute 85 percent of farmers’
population in India, With the decreasing land holdings emerging as the biggest
challenge for the Indian agriculture, National Bank of Agriculture and Rural
Development (NABARD) Chairman Dr Prakash Bakshi talks to R Krishna Das about
how to deal with the situation. (Source :- http://www.business-
standard.com/article/economy-policy/solution-to-indian-agriculture-is-aggregation-dr-
prakash-bakshi-113090600679_1.html)

You have been expressing your concern over the decreasing land holdings in the
country. What solution do you envisage?

The agriculture sector in the country is under stress. For, the land holdings are
constantly decreasing. While the total acreage of 140 million hectares has remained the
same for the last 40 years, the number of farmers had just doubled. The number of
people tilling the same land has increased two folds.This has resulted in discouraging
farmers to invest in the field because of small land at disposal. If timely action is not
taken, it will be difficult to maintain agriculture as a feasible profession. The solution to
the Indian agriculture is aggregation and for this another form of land reform is required
in the country.

What will be the form of land reform?

The cost of agriculture production has enhanced about 67% while the bank's cost of
financing. The marginal farmers are keeping his land untilled while he seeks jobs
elsewhere. The fear of losing the land makes him reluctance to give it to others for
cultivation.The country needs amendments that facilitate leasing of land and protecting
the rights of owners. If 10 farmers come together and take up collective cultivation work
jointly, the volume of production will increase. Cooperative and contract farming are
other examples. It is a big political issue but we need to talk to the persons concern and
introduce a new land reform code.

What are the other measures?

More research is required in the field of agriculture and new innovation in the sector
shall be implemented. The System of Rice Intensification (SRI) method is one of the
examples. The labour skill need to be upgraded while the mechanization process shall
be introduced in the sector.
Is NABARD mooting new plans?

Our aim is to make NABARD more sustainable.We have been paying least attention on
after harvest. This is something we miss. The NABARD will now focus on the issue. The
farmers are not getting the reasonable rate for their produce when they come to the
Mandis.Trade in the Mandis is cartelized and the farmers are forced to sell the produce
at the throw away prices. Small farmers give maximum productivity but he is the worst
paid farmers. The lack of proper shortage is one of the hurdles as the farmers cannot
stock the produce and wait for a better rate.

The NABARD is investing Rs 5,000 crore for warehousing. What is the status?

The work is in progress. Under the plan, godown will be constructed in the
primary cooperative society limit. If the amount earmarked (Rs 5,000 crore) is utilized, it
will generate a space to store 10 million metric tonnes of agriculture produce. We can
meet a big requirement of the country by ensuring such a big space for proper shortage
at the rural pocket.

What is the position of providing core banking solution to the cooperative banks?

Of the 250 cooperative banks in the country, 40 banks have not taken any initiative to
ensure core banking solution in the branches. The innovation is inevitable and those
failing to implement it will lose the customers.

The NABARD circular on PACS is now going well with the states. Many are in fact
opposing it?

The circular directing District Central Cooperative Banks (DCCBs) and

State Cooperative Banks (STCBs) to convert Primary Agriculture Cooperative Society
(PACS) as its business correspondents by taking over their asset and liabilities and
stopping PACs from accepting deposits and lending will show its results later. If the
measure is not taken, the cooperative societies in the country will be closed.

Our Website should be like this :- http://certesrealty.com/our-services/land-services/land-

identification-aggregation-acquisition/

or

http://www.isapindia.org/pages.php?url_key=farmer-aggregation-and-agribusiness-linkages