This has apparently come as a big shocker for the State: The farmers in Odisha see very little wealth creation at hand despite filling up the granaries in the State. The Government often showcases indices like increase in net area sown and food grain production in the State’s farming sector. But what matters most is how much wealth creation did the farm sector realise in Odisha as it only provides the necessary resilience to the farmers in going big in both cultivation business and basic living conditions.
However, this is where Odisha falters poorly. Sample the enormity. According to the latest data with the State Agriculture Department, the total value of the produces and services generated in the farm sector (including dairy sector) in Odisha in 2014-15 has shown a real growth of mere 2 per cent only. The value shows only around 14 per cent growth at the current prices that factor in the prevailing high inflation in agro products of around 8 per cent in 2014-15. In contrast, fishermen realise a better value by clocking over 6 per cent growth in real terms and over 20 per cent rate of growth at current value terms. Industry and services sector as a whole also clocked a decent real growth of around 9 per cent each in 2014-15.
The marginal growth in wealth creation in farming sector sounds alarming when over 108 lakh people depend on it for livelihood against mere 6 lakh on fisheries and around 67 lakh on industries and services sector in the State. In fact, the details throw out more devilish facts because the farm sector had seen a negative growth or say erosion of its value by around 10 per cent in the preceding year of 2013-14. The real value of agro produces and services in 2014-15 were over Rs 2.28lakh crore – far below of over Rs 2.5 lakh crore realised in 2012-13. This fall highlights the erosion in farmers’ net worth in Odisha.
The paradox of high production but lower value realisation by farmers is vindicated by the current potato crisis the State is grappling with. Faced with potato shortage last year, the Government launched an Rs 300 crore Potato Mission to boost production. However, when it came to value realisation farmers got a raw deal. Consider this. Farmers bought quality Gujarati variety tuber seeds from district agriculture centres at Rs 35-40 per kg. Farmers need around 2,500 kg tuber seeds to cultivate potato in one hectare land. The expenses towards seeds they then incurred can be calculated at around Rs 1 lakh/ha. Since the productivity of potato per hectare is around 12 tonnes or 12,000 kg, for every one kg potato produced farmers have used seeds worth around Rs 8.
As the Government now has decided to procure potato at Rs 6/kg, farmers have to incur a huge loss, explained farmer leader Akshay Kumar. He added potato is not the only case farmers reap a huge loss. The same applies to paddy crops also. Significantly, the Commission for Agriculture Cost and Prices (CACP) has conceded that in year 2012-13 paddy farmers in Odisha sold their produce at minimum support price, which was 55 per cent lower than actual cost.
