Sunday Special: AGRICULTURE--A drain that’s the great grain purchase

Sunday Special: AGRICULTURE
Sanjeev Singh Bariana & Archit Watts

A drain that’s the great grain purchase

The world trade in wheat is more than for all other crops combined. That may sound heartening in a state that leads in the crop production, but for a majority of Punjab’s farmers, the sale process is an ordeal. All the more when a part of crop does not measure up to the quality standards because of the vagaries of weather

THE ECONOMICSOF FARMING

• Most of the farming in Punjab is done on a contract basis, at an estimated Rs 35,000 per acre. Most marginal farmers take loans. The average wheat yield this year in Fatehgarh Sahib, for example, has been 12 quintals per acre and since the purchase rate was fixed at Rs 1,450 by the government, it comes to Rs 17,400 per acre. Farmers also sell 40 quintals of stubble per acre for around Rs 12,000. This adds up to Rs 29,400, still a net loss of close to Rs 6,000.
• The average wheat yield, again in Fatehgarh Sahib, has decreased by 25-30% due to the unprecedented rain in March and April. The maximum yield is 14-15 quintals against 22 quintals per acre last year. In some pockets,it has gone down to 7 quintals.
• Inclement weather affected the grain and farmers had to spray the fields thrice to save the crop from diseases. The extra expenditure came to Rs 1,500 per acre. If the crop damage is up to 25%, the farmer gets nothing. If it falls in the 26-50% and 51-75% categories, the government pays compensation in varying degrees. A farmer suffering damage within the 76-100% category is paid Rs 8,000 per acre: Rs 5,400 by the Centre and state chipping in with Rs 2,600.
• There is no scientific method or procedure toknow how much percentage of crop has been ravaged. It is a hit and trial method that is adopted by the Patwaris. For an average farmer, therefore, the loss suffered is not covered, forget about profits.— Sanjay Bumbroo

So real is the long-debated crisis in Punjab’s farms that it took the Indian state’s meek and casual response after the untimely rainfall to bring home what seemed implausible. Farming alone won’t do it for farmers. Not this kind of farming certainly.

The economics doesn’t add up for most farmers, the government involvement in the great grain purchase is flawed though very necessary, and the damage assessment systems are anything but right.

Farmers are well versed with the  weather acting up. It’s what happens after and how removed from reality the policymakers are that’s adding to the distress. Diversification is often listed as a solution, but in absence of any marketing push or minimum price help, few are willing to opt for it. So, the choices before the farmer are limited and the decision has to be his. He can either grow the same crop, sow a new one and spend agonising months hoping it doesn’t end up in a mess, sell a part of the land, or make sure that the young members of the family join another profession. 

As a result of the downpour prior to and during harvesting this Rabi season, the per acre yield has decreased by between 25 and 40 per cent in different parts of the state. The Agriculture Director puts the figure at 10 per cent. The rates of compensation have been worked out, but the Punjab government is unclear whether the enhanced compensation is to be given to farmers who suffered loss due to heavy rainfall or only hail.

Bathinda farmer Malkit Singh Leela exemplifies the frustration. A man of few words, the Bhagivandar village resident spent four days waiting at the mandi for his wheat crop to be picked up. His resolve at the end of it was not to grow wheat in future more than the quantity required for his family. When arhtiya Rajender Singh asked half in jest about how Leela intended to pay off the credits, the answer silenced those present: “How does it matter? I could not pay off my debt after growing crops in 16-17 acres for 24 years.”

Procedural wrangles are not new during procurement. This season, the damage caused to the crop and the resultant delay and confusion over buying of wheat created a new problem.

Caught in the blame game, labourers say they are not being paid the “daala” (special fee for loading), truckers say there’s no unloading from vehicles, the arhtiyas are livid at the government for not giving any money, and the farmers? For all the activists protesting and political parties taking potshots at each other for their cause, they are on their own.

For several days after the procurement began, they did not get the payment.

Arhtiya Ram Parkash says the preparation for procurement is a huge exercise, but there was none this year considering the shortage of “bardana” (sacks) or adequate arrangements for labour.

Avtar Singh Manuana, who heads the Talwandi Truck Union, claims there’s been no problem with the loading or lifting of wheat. “There is only a major problem with off-loading because of the acute shortage of labour. So, trucks cannot rush back to get fresh wheat from mandis. This is happening at different places all over the state.”

Vinod Kumar, a labour contractor,  attributes it to a delay in tenders and the new cartage policy. Boota Singh from Behman Kaur village in Talwandi Sabo says “the bad experience this year is just a forewarning for tougher times ahead in context of reports of the Food Corporation of India not lifting wheat crop next season onwards”.

The other reality

Crop damage or no, the spectacle of tonnes of wheat rotting in the open is going to be repeated, as nearly half of this year’s produce would be again stacked in the open godowns. Bhupinderpal Singh, Joint Director (Storage), Department of Food and Civil Supplies, says nearly 40 lakh MT wheat is expected to be stacked in open godowns, and the same volume in covered godowns. The rest would be directly supplied to FCI and other states.

In Muktsar district, Punjab Agro, Punsup and Pungrain have no covered godowns for storage. Nearly 4 lakh bags stacked in the open godowns hired by Punsup have decayed in the recent past. This season, the Punjab government has fixed a target to buy 125 lakh metric tonnes of wheat from all the grain markets. Pungrain, Markfed, Punsup and FCI have got their share of 20 per cent each of the total stock, while Punjab Warehouse has to purchase 11 per cent wheat and Punjab Agro 9 per cent of the total stock. As per a circular of the state government, fresh wheat would not be stacked where the decayed wheat was lying in the godowns. The total carry-over stock of wheat in state is nearly 61 lakh MT. “About 30 lakh MT wheat is stacked in open godowns and 30 lakh in covered godowns in state of 2014-15. Besides, 1 lakh MT of wheat is lying of 2013-14,” says Kumar Rahul, General Manager, FCI, Punjab.

Fatehgarh Sahib District Agriculture Development Officer Dr Satish Kumar says the major problem for the farmers in the next Rabi season would be procuring seeds as the quality of seed was not up to the mark this season. 

Just two silos in Punjab

The state has just two grain silos — state-of-the-art foolproof temperature-controlled storage system for grains — in Moga district and another in Amritsar. Recently, the Adani Group has approached the state government showing interest to construct silos at several locations.

Damage, reluctance, loss

• Most procurement agencies have been reluctant to make purchases because of the crop quality — the grain is shrivelled, lacks lustre, or has black streaks.
• The Agriculture Department last year targeted wheat sowing in 35.12 lakh hectares, resulting in production of 176.2 lakh metric tonnes. This year, the target was 34.7 lakh hectares and production of 165.69 MT. “Since it rained at the time of pollination, the grain size has remained smaller and the output per acre is likely to remain low by 10 per cent,” says Director Agriculture Dr Mangal Singh Sandhu.
• Areas that get quickly waterlogged like Muktsar, Fazilka, Faridkot, Moga, Kapurthala, Gurdaspur, Pathankot and Jalandhar have faced more damage. In Jalandhar, the most affected farmers are from Shahkot, Lohian, Nurmahal and Phillaur.
• As hail partly flattened the crop, mechanised harvesting was not possible. It added to the production cost as farmers had to deploy labour for harvesting, which cost them Rs 2,000 an acre, much higher than hiring a combine at Rs 1,200 per acre.
• Mahinder Singh, a farmer from Lidran in Jalandhar, says in mandis, labourers have been asking for Rs 5.38 per 50 kg of gunny bag — unloading, drying and filling of sacks. “We have been big losers this time,” he adds. — Deepkamal Kaur

THE REASON PROCURED WHEAT IS NOT MOVING OUT OF PUNJAB’S MANDIS TO GODOWNS THIS SEASON

• The slow movement of procured wheat to godowns has left almost all mandis bursting at the seams. It is being attributed to the new labour (cartage) and transportation policy.
• The food and supply department used to engage private labour and cartage contractors for lifting, transportation and unloading of wheat from mandis to godowns on a lumpsum rate.
• This time, the loading of wheat was assigned to commission agents at Rs 1.53 per quintal. The transportation and unloading work was allotted to private labour contractors, a move strongly opposed by the labour and cartage contractors.
• Every mandi was linked to the nearest godown for storage of procured wheat and transportation rates were fixed on the basis of distance.
• For up to 3 km, a labour contractor is to be paid Rs 2.31 per bag (50-kg each). For 3-5 km, the rate is Rs 3.27 per bag, while for 5-8 km, it is Rs 4.27 and for 8-12 km, Rs 5.76. The rate is Rs 6.88 per bag for 12-16 km distance as transportation and unloading charges.
• The new policy left the transporters fuming and they announced a strike.
• On March 18, the government asked for allotment of transportation work before March 31 but tenders were floated in the first week of April as the department was busy mapping the distance.
• Though the wheat procurement in mandis was in full swing in the third week of April, wheat lifting was yet to start because of the transporters’ strike and delayed allotment of transport work.
• Wheat was to be shifted to godowns within 72 hours failing which the contractor was to pay Rs 250 per truck per day. But there was no lifting till April 25 in most mandis.
• Once the lifting started, in many mandis, the transporters were forcing commission agents and farmers to pay them Rs 2 extra per bag to shift their stock to godowns as the rate fixed by the government was “too low”. About 30% of the procured wheat has been shifted to godowns so far. — Balwant Garg

Here’s why crop damage assessment is flawed

Ravi Dhaliwal

The assessment of damaged crop or “girdawari” system is not only archaic but totally flawed, say experts. The person upon whom rests the entire responsibility is the Patwari, the lowest-rung revenue official. On paper, he is required to physically assess the loss. Actually, if he does visit the village at all, he gets hold of the sarpanch and both assess the losses. Otherwise, the sarpanch goes to him and both settle the case.

The Patwari, as per rules, has to forward his recommendations to the Circle Revenue Officer (Kanungo), who reports to the Naib Tehsildar or Tehsildar. The Tehsildar forwards the report to the SDM, who finally sends it to the DC. Seldom are the Patwari’s recommendations changed. Political allegiance plays a role too. Farmers in Gurdaspur allege that if the sarpanch owes allegiance to Akali Dal, the Patwari is asked to wrongly gauge the loss suffered by those loyal to the Congress.

Assessment of the crop damage is an archaic method.

Take the example of Dugri. A Tehsildar sent for assessment on the explicit orders of the Deputy Commissioner to the village — where farmers suffered near total crop damage — had a 2-minute look at a waterlogged tract, and left, even as scores of farmers kept waiting to list their losses.

In this border district, each Patwari was given an area of 2,000 acres to assess in three days, which is next to impossible.

Officials, in the absence of clear directives from the state government, are also hard-pressed in deciding the final compensation. “There is absolutely no procedure to know how much percentage of crop has been ravaged. There is just no scientific method to measure the loss. It is just a hit and trial method that is adopted by the Patwaris and that too is clouded by political machinations,” says an Agriculture Development Officer.

THINGS COULD CHANGE IF…

The Patwari is accompanied by at least two officials of the Agriculture Department to every village. Since there is no scientific equipment available to gauge the loss, the officials should assess the damage by physically visiting the fields.

The Patwari should be asked to take out the Jamabandi numbers of the land on which the crop has been damaged, as identified by the official, which should be forwarded to senior officers

This method will ensure that the Patwaris’ role is under scanner and his bargaining powers will be curbed since farmers often bribe Patwaris to make sure their damage, and consequently compensation, is “maximised”.

The other remedy, touted by Agriculture Department officials, is to form village-level committees, comprising village elders, which should accompany the Patwari to the tracts of land where crop stands damaged. “In this way, the Patwari will not be weighed down by political compulsions as members of the village-level committees can be drawn from two or more political parties,” avers LS Hundal, Chief Agriculture Officer.

Courtesy: The Tribune
Dated: May 3, 2015