By Prof. Ram Singh
Agriculture in Meghalaya is undergoing rapid transformation and in that process agri-business is now emerging as a specialized sub-sector. Demand for modern farm inputs and value added services are also increasing rapidly and therefore development of viable strategies and approaches for ensuring adequate and efficient supply of modern inputs and services for accelerated growth are going to be challenging in general but becomes more specific due to COVID-19. Generally, the magnitude of change is lagging behind rest of the country mainly due to poor infrastructure, lack of policy support and lack of proper institutional supports. Marketing of agri-products of small and marginal farmers in the state of Meghalaya is adversely hampered.
Already the markets are fragmented, not regulated, and APMC Act is not in vogue. The share of middle men in the consumer rupee remains very high. Again the COVID-19 pandemic has encouraged more hobnobbing of middlemen with producers. Supply chain of out-put as well as input has disrupted business on both sides. The COVID-19 Pandemic happened at a crucial time for producers and middlemen where many crops of the state were either on the verge of harvesting or for sale in markets on one hand and input supply need for new crop plantation/sowing on the other hand. Consecutive four lockdown has devastated the planning of farmers as well as other stakeholders in the state. It has not impacted the economy of households but it has impacted the macro economy of the state. Hence, the development of rural infrastructure and improvement in the existing rural marketing system are the key areas which deserve special attention of planners to promote agri-business in Meghalaya and the region to bring back the economy on track on which the major chunk of population is surviving.
Existing infrastructure facilities are mostly concentrated around the state capital only; far away from the areas producing agricultural commodities which are highly perishable in nature in the remotely located villages of the state. Better infrastructure and deregulation of domestic market will encourage private investment in agri-business sector which will open up several opportunities for employment in the non-farm sectors for those who have lost their jobs. Contract farming can overcome the problem of raw material supply and reduce post harvest loss, particularly in case of perishable products like fruits, vegetables, milk, mushrooms, etc. However, to safeguard the interest of small and marginal farmers from possible unfair trade practices and breach of contracts by the firms, the contracts can be regulated by enforcing transparency in contracts and strengthening farmers’ cooperatives or self help groups.
In case of contract farming, crop insurance should be made mandatory with premiums to be paid by the firms/company. There is a growing market for organic foods and processed food items with international quality standards. But lack of premium prices, poor certification systems and inadequate quality control facilities are the constraints. It is now accepted that the future scope in agri-business lies in the areas of agro-processing; development of rural infrastructure like cold chain, warehouse, packaging, etc; micro-finance and crop insurance; organic farming and health foods; establishment of agri-clinics and service centres; and in the area of information communication technology, forward trading and supply chain management.
Development of agro-industries is critically important for the expansion and diversification of the agricultural sector in the state of Meghalaya. In addition, such activities would reduce seasonality of consumption of a range of processed foods, minimize post-harvest losses, and increase profitability and sustainability of production systems besides their impact on increasing farm incomes, rural employment and foreign exchange earnings and reduction in marketing risks.
Policy Options: Only few markets regulated in the state with limited number of commodities for transaction in the state of Meghalaya. Hence, at least 50% of the markets should be regulated in the state. APMC Acts should be amended to allow Contract Farming in high value enterprises like Fruits and Vegetables; Poultry; Spices; Medicinal crops, Dairying, etc where the post harvest loss and price fluctuations are too high. At the same time sufficient safeguards to protect the small and marginal farmers from any legal disputes arising from the breach of contracts should be provided. Involvement of local governments (Village council/Municipalities) and crop insurance should be a must in the contract agreements.
Strengthening market intelligence in the State: Policy makers need time to time dataØ on agri-products comprising of arrivals and prices for constructive policy initiation in the strate. Hence, estimates of monthly supply-demand gaps and prices of important agricultural commodities and publish it in market bulletin or leading news papers/radio/television/etc. Strengthening/developing database for horticultural crops/enterprises: The availabilityØ of reliable data base on horticultural crops and enterprises, which is very poor at present, will be of immense help in policy making.
Strengthen Agri-business Education and Management in the state: IncludeØ commercial agriculture as a subject in school curriculum (since agriculture is the main source of livelihood for majorities in this region) and example may be taken from the other state of Rajasthan, M.P. and U.P. Participation of technocrats (Graduate/PostGraduate/Doctors in Agriculture) in committee/boards for better policy formulation: As the state has three leading college in the subject of Agriculture (Tura, Kyrdemkulai and Barapani)preparing human resources at UG and PG/PhD level, hence, provision of participation of these human resources must be ensured for better implementation of policy interventions in the sector of Agriculture.
Establish the State Agricultural Council to regulate all the sister department inØ proper shape with proper liaisoning with central Agricultural University and ICAR Strengthening Agri-business Infrastructure in the State: The Government shouldØ invest more on developing hardcore infrastructure like road, market, transport and cold chain system for vegetables, fruits, fish, meat and eggs etc.
Establish commodity boards for Ginger, Pineapple, turmeric and non-timber forest products in the state of Meghalaya in the line of Tea/Coffee/Rubber Boards. Ensure quality control of farm produce and processed foods: To capture the foreignØ markets, quality control of farm produces and processed food items should be encouraged as per international quality standards. The need is for a stringent food laws and development of infrastructural facilities for quality control and certification systems.
Establish processing units for fruits like pineapple, strawberry, jackfruits, turmeric and ginger for export.
Finance: Small and marginal farmers should get financeØ & Kissan Credit Card from institutional sources on priority basis. Promote and empower SHGs in production and marketing of agricultural produces. Form Farmers Producer Organization for each cluster of 5-6 cluster villages in the state for value addition in commodities like turmeric, ginger, pineapple, cashew nut, rubber, strawberry and jackfruits.
Promote region specific agri-business enterprises based on comparative efficienciesØ and niche areas: As the state comprises of three major regions viz; khasi, jaintia and garo hills regions. Hence, promote region specific crops/commodities/enterprises like turmeric in jaintia, ginger and pineapple in Khasi Hills and Cashew nuts, rubber and tea gardens in Garo Hills of Meghalaya.
Promote modified spoke & hub model of agro-processing i.e., primary processing should be done within the production areas and secondary processing facilities to be developed in towns/cities with contractual arrangement. Huge potential in organic agri-entrepreneurs in the state for every commodities as each agri-produce in an organic by-default
(The writer is Professor & Head School of Social Sciences College of Post Graduate Studies Central Agricultural University, Umiam (Barapani)-793 103 Meghalaya-India E mail: [email protected])