Food inflation is prevalent with a steep rise in the price of essentials like pulses, vegetables and milk. The gap between demand and supply is high in pulses, oilseeds, sugar and several vegetable crops including onion, tomato and potato. A lack in production, market intelligence and demand-supply balance based on integrated import and export policy is seen. With the prices shooting up rapidly, the poor end up spending nearly 70% of their income on food. A major chunk of the income is spent on food which leaves them with a meager amount for other necessities. High prices have lead to a reduction in food intake and hunger is unrelenting.

A dilemma surfaces in the context of prices for farmers versus prices for consumers. A farmer aspires for accelerated prices for his crops and consumers want declined prices for food. Again, this calls for a balancing mechanism to restrict price volatility.

With the pressure of population increasing on land, the average size of a farm holding is going down to below one hectare. The farmers are drowning under debts and the trend of selling farmland for other functions is on a rise. With over 45% farmers wanting to quit farming according to a study by the National Sample Survey Organization, we require a strategy to ensure a brighter future for the agricultural sector. This will involve improving the productivity and profitability of small holdings through appropriate land use policies, technologies and market linkages; enlarging the scope for the growth of agro-processing, agro-industries and agri-business, and establishing a “Farm to Home” chain in production, processing and marketing; and promoting opportunities for the service sector to expand in a manner that will trigger the technological and economic up gradation of farm operations.

I wish you all a very Happy & Prosperous 2012 !!!!

- Vijay Kalantri