The Maharashtra Government has prepared a contingency plan to tackle a possible agrarian crisis arising out of a gloomy monsoon forecast by the India Meteorological Department.
As part of this plan, the Government has set aside a war chest of ₹5,000 crore additional funding for farmers besides creating a buffer stock of fertiliser and 3.5 lakh quintal of seeds. Of the 17 lakh quintals of seeds required in the State, supply from corporate companies account for about 10 lakh quintals.
Speaking to
Increase in contingency “The State has about 15,000 UCCS which provide credit of about ₹25,000 crore every year.
“Given the grim monsoon forecast, these credit societies are geared up to increase the loan exposure by 20 per cent,” he added.
Banks, credit societies and registered money lenders provide agriculture loans of about ₹32,000 crore every year in the State. Of these, funding for the busy kharif season accounts for about ₹22,000 crore.
Unexpected rain at the start of this year in Vidarbha, Marathwada and western Maharashtra had damaged rabi crops, including wheat, soya bean, jowar and fruits such as watermelon and grapes, which were ready for harvest.
Veeresh Hiremath, Head of Research, Karvy Comtrade, said farmers in the State were already hit by bad whether in the last two seasons and the recent IMD forecast poses a new challenge for many important crops such as paddy, tur, urad, cotton and soybean.
“The prices of these commodities have rallied in the recent past on the back of good demand, dwindling stocks and below normal monsoon forecast,” he said. V Shankar, Managing Director, Rallis India, said that farmers were cautious on spending, but they will definitely put in their money on right products where they see value.
“The northern region is somewhat better placed due to irrigation, but Maharashtra is dependent largely on monsoon. It can be tough if rains fail as Maharashtra is very big in cotton, soya and corn,” he said.
Strategy proposed Jagadish Sunkad, Asian Development Bank consultant and agriculture expert, said that given the farmers’ vulnerability to changing weather pattern, the Government should put in place a strategy to mitigate problems arising from climate change.
While creating a buffer stock of fertiliser and seeds for re-sowing, the Government should also consider the loss incurred by farmers in their first attempt, he said.