Bengaluru: The second tranche of fiscal stimulus package for the migrant workers, small farmers and poor turns out to be a mixed bag with no relief to the tenant farmers.
Tenant farmers are the most vulnerable one and are hard hit due to COVID 19 outbreak and resultant lockdown according to Professor Sukhpal Singh, Centre for Management in Agriculture at IIM-Ahmedabad.
Adding to the woes are the post-harvest marketing risks which were left unaddressed.
Professor Singh, further explains how this stimulus package is not enough and much more is needed to be done for the farmers.
Targeting is the concern
As per Professor Singh, the proposed additional refinance support of Rs 30,000 crores through NABARD will cover only 3 crore farmers out of the total 11 crore farmers in the country.
“Though it’s a good thing that additional money made available for working capital needs in this crisis period, but how can one target to these 3 crore small and marginal farmers is not specified,” he said.
Effectiveness of KCCs
Sighting data, Professor Singh mentioned that only 10-11 per cent of total Kisan Credit Cards (KCCs) are valid.
In such a scenario, the monetary benefits that are extended based only on KCCs will reach only small number of farmers.
Moreover, since KCCs are meant for land-owning farmers, he observed that collateral-free loans would have been much more helpful for tenant farmers.
Post-harvest Marketing Risks
“One important aspect in farming which has been completely left untouched today are the marketing risks which have been a huge challenge for the farmers,” Professor Singh said.
“With lack of proper infrastructure, warehousing and procurements procedures the supply and demand chain disruptions will continue and as a result the farmers may produce more but lack of procurements will result in spoilage,” he added.
On portability of ration cards
Professor Singh has pointed out that the portability of ration cards under the ‘one nation one card’ scheme is a welcome step.
However, he has observed that the government should have announced free rations beyond two months.
“Since this impact is going to last for some more time, additional money for additional ration should have been given not just for two months,” he added.
Read more: Key takeaways: Migrant workers, small farmers & poor breathe a sigh of relief
