door E. Revathi
Dit is de volledige tekst van het artikel 'Liberalisering leidt tot zelfmoord', elders op deze pagina.
Andhra Pradesh has the distinction of being first in number of development issues. This is the state which has pursued neo liberal economic reforms vigorously, this is the state which has witnessed the worst symptoms of distress in agriculture in the form of social tragedy of suicides, sale of body parts by farmers, and this is the state which stood low in terms few human development dimensions. This is also the state facing the threat of extremism and also facing the demand for carving a separate state encompassing the backward countries because it is a well endowed region (see Pattern of Development in India- A Study of Andhra Pradesh for details). These policies widened the growth disparities between the irrigated Coastal Andhra and the predominantly rain fed dry land areas of Telangana and Rayalaseema. By the decade of eighties Andhra Pradesh was ranked one among the medium growth states (India Development Report) but beset with regional inequalities. Besides, the recent neo-liberal policies (withdrawal of state support and exposure to market forces) have impacted adversely on vulnerable regions and groups. Given the development dynamics between the regions and at the grass root level, there has been acceleration in the effort of ‘Catching up’ with the relatively developed regions, and better off classes viz an effort to ‘mainstreaming’ from the mid nineties (post reform period). This process is increasingly manifested in the backward regions, and vulnerable social and economic classes. The uninterrupted occurrence of farmers’ suicides and their increased incidence in the Telangana and Rayalaseema regions and among backward social groups is concrete evidence to this. The paper broadly covers the situation leading to the distress in agriculture in section I, neo liberal reforms undertaken in the nineties in section II, political, regional dimensions of policy impacts on growth of agriculture in section III, social and economic costs/ consequences in section IV, and summary and conclusions in section IV.
Section I
Characterization of distress in agricultural sector
Growth in agriculture sector and growth in crop production within agriculture sector are the two characteristics of agriculture considered to characterize distress in agriculture sector.
Growth of Agriculture sector
The decline in growth of agriculture reflects the distress in agriculture sector. For instance, the growth rate in agriculture in the state between 1980-81 and 1990-91 was 2.21, which marginally increased to 2.47 between 1993-94-2000-01. This is much below that of industry and services, which were at 7.36 and 7.69 in the first period and 6.20, and 6.71 in the second period respectively. Comparatively the growth rate in the state is lesser than the All India, which is at 3.12 and 2.73 for the respective periods (Dev and Ravi). The share of income from agriculture sector declined steeply over time in the state. While this share in the Net State Domestic Product (NSDP) has declined from 41.3 percent in 1983 to 27.4 percent in 2004-05, the share in workers remained constant (around 79 percent) till the turn of the century but declined marginally to 72 percent by 2004-05 (S Subrahmanyam and Aparna, 2007). This makes clear that the overall state income and the per capita income are rising but per capita agricultural income has been declining especially between 1993-94 and 2003-04. This clearly brings out that the levels of living of the farmers’ vis-a- vis others including the large farmers have been declining.
Growth of crop sector within agriculture
Within agriculture the crop sector experienced dismal performance with a very low growth rate of 0.59 percent during 1993-94 to 2005-06.The pattern of growth across districts highlights very interesting issues. It is interesting to note that some of the Telangana districts, (dominantly dry land areas) experienced high growth rates of agricultural output during reform period (1991-92 to2004-05). For instance, Warangal (Telangana region) achieved a growth rate of more than 3.0 percent per annum (Subramanyam, S, Aparna, P, 2007). At the same time, this district recorded the highest incidence of farmers’ suicides. This is one puzzle thrown up where there is high growth combined with high risk. This high growth has been achieved at heavy private investment incurred for private, unsustainable irrigation from ground water source, where failure of the source is recurrent phenomenon. Such high investments indicate the efforts of the farmers in dry land areas to catch up, with those in the irrigated areas, which cost more for the former in terms of lot of sunken capital and loss of human lives (Revathi E, 2007). Thus deceleration in the growth of agriculture sector more so in the crop production has accelerated from the post reform period. Hence the second generation reforms undertaken in the agricultural sector and their implications for agricultural growth are traced in the next section.
Section II
Agriculture Related Policy Shifts and their Implications to Agricultural Growth
The reforms programme in Andhra Pradesh was distinct from that of the country in the sense that it is distilled and accelerated version of India’s liberalization agenda. Nearly one third of all external assistance to the country was received by the state by the turn of the century. Lowering subsidies, raising fees for power and water usage, wooing private investment was taken up at a pace faster than other states (CASI, 2005).
Reforms were forthcoming from mid nineties in the state particularly from the fiscal year 1996-97, the process of privatization started.3 In 97-98 water rates for irrigation was raised by five times. Power tariff was hiked in 1996, 1999 and in 2000. On the other hand in a bid to attract the private investment the then government gave all incentives to investors in terms of free land, power, labour guarantees, tax waivers etc. In short the state was made a favorite destination for the Foreign Direct Investment4. Tourism, finance, information technology, biotechnology were the favourite sectors for the government in the state. In early 1990 the AP government released the manifesto Vision 2020, which visualized reduced dependence on agriculture and its reduced contribution to state income. The analysis on the important policy reforms and their implications are in order.
Fiscal Reforms
The fiscal reforms with emphasis to reduction of fiscal deficit had an adverse affect on public investment in critical areas. The Central government capital expenditure as a share of national income declined. All public expenditure directed towards the rural areas fell both as a percent of GDP with adverse effects on agricultural growth. There was also decline in the Central transfers to states. The deflationary financial policies affected both public investment and institutional credit, especially for small enterprises and agriculture. In the name of fiscal constraint and in the false hope of higher agricultural commodity prices and higher farm profits from liberalized external trade in agriculture, public expenditure in agriculture was severely curtailed. There has been a systematic decline in the budgetary expenditure on agriculture and allied activities in the name of fiscal constraint. State public investment in agriculture declined steeply. The rate of growth of public investment in agriculture declined from 8.5 percent in 1980s to 1.4 percent in 1990s. Private investment in agriculture, which increased at a rate of 4.7 percent in 1980s, actually turned negative to – 3.8 percent in 1990s (Dev and Ravi, 2003). In fact, the Gross Fixed Capital Formation (GFCF) reached a peak level of 16.4 percent in 1986-87 and started declining since then. Agriculture growth has to be attained by increasing productivity so that cost of production is reduced. The average annual total factor productivity (TFP) growth rate in case of India was 1.3 percent compared to 0.8 percent in A P, during 1990s (World Bank, 2003). There was neglect of research and extension. The government investment in agricultural research and education in the state (at 0.26 percent of its agriculture GDP during 1992-94) was lower than for the other three southern states and was just around half of that for All India (0.49 percent for centre and states together). Public expenditure on extension, which is borne by the state government, declined in absolute terms in the nineties. It was only 0.02 percent of the state’s GDP during 1992-94, as against the All-India average of 0.15 percent (Narasimha Reddy, D 2005). Agricultural extension services account for only 9 percent of the farmers’ information on agricultural technology in the State. Input dealers (30%) and other progressive farmers (34%) constitute the major source of information (NSSO – Report 499 -2005). It is also observed that the slow down of public investment in building the rural infrastructure like irrigation, roads, market yards, agricultural research, and agricultural extension has acted as a constraint in increasing productivity and profitability and to tap the benefits from the favourable terms of trade (Chandrasekhara Rao, N, 2006).
Financial sector Reforms
Financial liberalization measures have affected adversely the flow of credit to rural areas. The term lending as well as crop loans by commercial banks to agriculture fell much below the growing credit needs of farmers. The share of small borrowers in the total bank credit declined from 22% in 1991 to 7% in 2001. The share of agricultural credit from the formal institutions (like banks) declined in the pre- and post-liberalization period in the state of Andhra Pradesh (Reddy KS and Prudhvikar Reddy, 2006).
External Trade Reforms (globalization)
Trade liberalization in the case of agriculture has led to destabilization of agriculture in the case of several crops. The reduced tariffs on commodities like cotton, spices and edible oil which depressed domestic prices have caused serious crisis to the farming community. The imports of seeds have been liberalized, which have not only brought about new varieties of seeds including GM seeds, but also brought along high prices, high risk, spurious seeds, and unfair trading practices in the absence of proper regulatory mechanism for small-marginal farming community. The two major crops after rice, viz. groundnut and cotton are known to suffer from trade liberalization in Andhra Pradesh. The import duty on cotton has been reduced to almost zero, thus depressing cotton prices. Similarly, there has been gradual liberalization of imports of edible oil. There has been the cause of stress on edible oils production and squeeze on profitability of groundnut in A P (Narasimha Reddy, D, 2007)
Institutional Reforms
With the aggressive reformist approach of the State, it is not surprising to find that many public institutions critical for farmers and agricultural development were systematically eroded or destroyed. Some important government corporation and cooperative institutions in the state were closed, allowed to run down, or simply handed over to the private sector. These institutions, such as A.P. Irrigation Development Corporation, A.P. Agro-Industries Corporation, A.P. Seeds Development Corporation, Cooperative Sugar Factories, and Cooperative Spinning Mills played an important role in helping the farmers. The closure of these institutions also affected the farmers adversely. Thus, the economic strategy at both central government and state government levels has systematically reduced the protection afforded to farmers and exposed them to market volatility and private profiteering without adequate regulation, reduced critical forms of public expenditure, destroyed important public institutions, a steep rise in the power charges until 2004, growing dependence on high cost ground water resources, increased irrigation charges and high degree of dependence on high interest bearing dealer-broker provided informal credit (Narsimha Reddy,D,2007).
Education and Health Sector Reforms
Similarly, privatisation of education and health sector has had adverse consequences for farmers. In the delivery of health and education, the reductions in spending and reduced quality of public services has led to the increase of private sector activity which has created segmented markets for rich and the poor. Higher income groups have moved to private sector while the state has been offering services at usually much lower standards of efficiency and quality to the lower income groups. This impact has been felt strongly in the health and education services and has translated into an equity issue. The poor have also been affected by higher drug prices (Commission on Farmers’ Welfare, 2005). Thus reforms in all spheres have adversely affected the state of farming in the state with rising cost of inputs, declined public investment on infrastructure, unregulated and hence predatory markets which resulted in unviability in agriculture. This impact differs across the state where backward areas, small- marginal peasants, have become more vulnerable in this process.
Section III
Regional Dimensions of Policy Impacts on Growth of Agriculture
Changing Landholding Structure
The state policies, market process and demographic pressures have together brought two remarkable changes in the landholding structure in A P overtime: increased proportion of small-marginal holdings and growing proportion of agricultural laborers. These changes have ultimately led to increased incidence of tenancy, especially in irrigated areas and emergence of a large proportion of “chronically disempowered” peasantry, who lack the wherewithal and incentive to make the necessary productivity enhancing investments that contribute to growth in agriculture, both in the resource poor dry regions or in the resource rich delta region (Narsimha ReddyD, 2007). It is also pertinent to note that the households belonging to scheduled castes and backward castes accessing land either through ‘sale-purchase market or lease-market’ is on increase in recent times ( Galab S, and E Revathi, 2006).Thus the emergence of large proportion of tenants ,marginal and small farmers and increased participation of vulnerable social groups also led to the formation of poor peasantry who do not possess negotiating skills to negotiate with the market, state and civil society for undertaking agriculture without much risk, especially in the context neo-liberal reforms.
Changing Irrigation sources
Irrigation another major driving force for agricultural growth has always been contentious in the state. The irrigation policy of the state was favourable to the resource endowed Coastal region which resulted in combination of high rainfall and high irrigation. An amount of Rs 18,730.35 crore5 was spent on irrigation in the five year plans between 1956 and 2005. Lion’s share of this public expenditure on irrigation was spent on major and medium irrigation, which increased area irrigated by canals from 12.92 lakh hectares in 1955-56 to 15.62 lakh hectares in 2001-02 (Economic Survey, 2005-06). Most of this increase has been in Coastal Andhra. Neglect of minor irrigation has resulted in fall in net area under tank irrigation from 10.68 lakh hectares in 1955-56 to 5.67 lakh hectares in 2001-02. As tank irrigation has been the backbone for agriculture in Telangana region it faced a raw deal in terms of decline in net area irrigated. Between 1955-56 to 2000-01 the percentage of irrigated to net sown area has increased from 24.3 to 40.4. By the turn of the century Coastal region had 58 percent of irrigated area to net sown area, whereas this is only at 36 and 23 percent for Telangana and Rayalaseema respectively (Subrahmnyam S, 2002). However the source of irrigation (surface or ground) makes all the difference which implies the cost (public or private) borne by the farmers.
By mid nineties the disparities in irrigation sources became distinct which played a crucial role in precipitating crisis especially in the dry land regions. Telangana and Rayalaseema regions had 60 to 70 percent of irrigation with ground water sources whereas coastal region had 80 percent under surface irrigation (canal). Nearly 73 percent of the bore wells and dug wells sunk during 1994-95 and 2000-01 were in the Telangana region. Minor irrigation census statistics show that 89 percent of irrigation infrastructure in the state is owned by individual farmers, of which the share of Telangana farmers is 62.40 percent (3rd Minor irrigation Census, 2000-01). Well population is increasing at the rate of 56000 wells per year of which 60 percent is in the Telangana region alone (ibid, 2002). The ownership of irrigation wells and land holding does not have strong correlation showing that all categories of farmers are investing on tube wells and more so it is the marginal and small farmers making more loss compared to other categories of farmers. This means that farmers in dry regions bear substantial burden of irrigation provision from their own resources, often by heavy borrowing, and still end up with very unstable and low-level of irrigation, while farmers in the relatively well developed Coastal Andhra enjoy the benefits of stable and high level of irrigation developed through public investment (Narasimha Reddy.D, 2007). It is aptly noted that the unstable growth of wells combined with monsoon failures and decline in surface irrigated area led to drying up of wells due to inadequate recharge (Revathi E, 2006;Subramanyam S and P Aparna, 2007).
Changing Sources of Credit
The increased credit needs of the farming community could not be met by institutional sources. The recent NSSO survey in 2003 has revealed that the farmers in Andhra Pradesh have low access to formal credit compared to all India as whole and other southern states. Farmers from Andhra Pradesh have borrowed 68.6 percent from the informal sources, while the corresponding proportion is only 42 percent at the national level. The share of commercial banks account for the single largest source (30 to 36%) of outstanding debt of farmers for All India, while it is at a very low level (15 to 20%) in Andhra Pradesh. Even the targets set for lending by the institutions were hardly achieved. The bank credit disbursal also reflects the regional disparities in the State. In 2003-04, about 57% of the bank credit to agriculture was to the relatively more developed coastal districts while the shares of the relatively backward Telangana and Rayalaseema were 29% and 13%. As a result the farmers are forced to depend more on high cost credit from non institutional sources for farm business investment (modern inputs like seed, fertilizer and pesticides) and capital investment especially investment in bore wells (Galab S and E Revathi , 2006; Subramanyam, S and P Aparna, , 2007;Narasimha Reddy, 2007). Besides, farmers also resort to output-linked credit purchases of inputs. These facts drive the message that the cost of cultivation has gone up due to the limited credit flows from the formal institutions. This is more so for the marginal and small farmers as the access to the formal credit is less pronounced among this class of farmers (Galab S and Prudhvikar Reddy, 2007). The structural changes in agriculture and the policy shift have not gone hand in hand and hence the support needed by the new entrants into farming was not forthcoming from the state.
Section IV
Economic, Social and Political Outcome of Agrarian Distress
The consequences of reforms could be seen in all dimensions the economy, polity and society. The economic dimension can be seen in terms of rising indebtedness, widening gap between income and expenditure, the social outcomes in the extreme form of suicides of farmers and its consequences for women and children. Political dimensions of the crisis took the shape of fall of regime, resurrection of demand for separate state, agitations/ movements against the effects of reforms.
Economic fallout
Widening gap between income and expenditure
Deceleration in agricultural growth had severe consequences for levels of living in rural areas. There is an incompatibility between the incomes and expenditures for almost all classes of farmers (marginal, small and semi medium) with consumption expenditures higher than incomes. Only in the case of big farmers (above 10 hectares of land holding) there is perceptible difference between the two. Changes in health and education seeking attitudes, desire for increased ‘mainstream socialisation’, high cost of education and health services have lead to rise in consumption expenditures6 ( Ratna Reddy V, and S Galab, 2004). In the case of Andhra Pradesh both the income and consumption expenditure levels are less than the ‘All India’ for all classes of farmers.
Rising Indebtedness
The incidence of indebtedness among farming households is the highest in Andhra Pradesh (A.P) with 82 percent, compared to 48.6 percent for All India. The source of debt from non-institutional sources in outstanding debt is also the highest at 68.5 percent compared to 42.4 percent for All India. The share of non-institutional sources in the total debt of small-marginal farmers is the highest in the State at 76.20 percent compared to 49.50 percent for All India. It is the only State with “moneylender” as the single largest source of debt at 53.40 percent compared to the All India average of 25.70 percent. On the other hand the share of institutional loans (Commercial banks, regional rural banks and cooperatives) in the total outstanding loans of farmers is the lowest in the State at 30 percent (Narsimha Reddy D, 2007).These are more pronounced in the Telangana and Rayalaseema Regions (Galab,s and Prudhivikar Reddy,2007) . The interest rates on non-institutional sources range from 25 to 30 percent. 75 percent of the indebted farmer households belong to Scheduled Tribe, Scheduled Caste and Other Backward communities. About 66 percent of the outstanding debt of farmers in the State is accounted for by the small-marginal farmers. Substantial part of the debt is incurred for productive purposes. Dry land regions are experiencing more capital expenditure because of investment in groundwater resources. It is evident that rise in cost of cultivation (current and capital), fluctuating and non remunerative prices has lead to incompatibility between costs and returns and therefore dependence on high cost credit from non institutional sources. Due to high dependence on markets for modern inputs a major portion of agricultural returns flow outside rural community in favour of urban traders. Besides, the average value of assets per cultivator household in A.P. is Rs. 2.26 lakh, which is much lower, compared to All India average of 3.73 lakh indicating lower income flows in the state. Thus the market induced vulnerability has more implications in terms of more burdens on small marginal farmers belonging to dry land areas.
Other economic implications
On the other hand there is increased feminization of agriculture taking place in the state with male migration, suicide of farmers, faction politics mostly in the Telangana and Rayalaseema regions. Recently concluded study brings out the fact that there is rise in fallow land among the deceased (suicide) households due to structural and institutional constraints faced by the women in taking up cultivation (Revathi E, 2007). There is increased risk aversion, changes in cropping pattern which impact on the levels of productivity. This has implications for agricultural growth in short run (Report of Sub Group on Gender and Agriculture, 2007). Also distress driven occupational diversification has taken place among the suicide households which has the risk of unemployment and unstable income levels. The increased investment on irrigation has resulted in greater stress on ground water leading to ecological degradation. Increased indebtedness due to distress might have slowed down reduction in poverty. And increased market dependence shows increased vulnerability to get into poverty trap among the farming community of Andhra Pradesh, especially in the dry land areas.
Social fallout. Suicides of Farmers
The phenomenon of suicides of farmers is not new to the state of Andhra Pradesh. The first phase of suicides in the state can be traced to the mid nineteen eighties (1986-7) in Prakasam district by cotton farmers. The second phase starts with mid nineties (1997-8) beginning with Warangal district but spread to some other districts of north Telangana by cotton farmers and also to few districts in Rayalaseema especially the groundnut farmers of Anantapur. Unlike the pattern of suicides occurred in mid-eighties, the present ongoing suicides spanning the whole of the state and all commercial crops linked to global markets. But again suicides are predominantly prevalent in almost all the districts in Telangana and Rayalaseema, while they are confined to the tail end areas of canal irrigation in coastal Andhra. It is revealing to note that the incidence of suicides is concentrated in the dryland areas despite the prevalence of uniform policy changes across all the regions of the state.Moreover, the incidence of suicides is more in post-reform period compared to the pre-reform period. The incidence of suicides across years and districts in Andhra Pradesh shows a pattern that it is more concentrated around backward regions.
The incidence of suicides is found to be the lowest in Coastal Andhra Region among the three regions of Andhra Pradesh. Further, it is the lowest in the relatively backward areas of the most developed district like Guntur compared to the dominantly dry land agriculture districts of Telangana (Warangal and Mahabubnagar) and Rayalaseema (Anantapur). Even in districts that fall into relatively developed regions it is the less developed pockets or the uplands which show the concentration8. Class becomes unimportant when it comes to the regions of Rayalaseema and Telangana where it is amply proved that medium and even large farmers are no exception to vulnerability because of the coincidence of low rainfall and low irrigation. Suicides are more concentrated among tenant farmers in the backward pockets of developed districts. Guntur provides substantial evidence to this.
The analysis below the district level (mandal level) in the selected districts reveals that the pattern of distribution of mandals according to levels of area irrigated under ground water sources as percentage to GIA and area under non-food crops as percentage to GSA throws up the lead factors for the incidence of suicides in the selected districts. All the sample districts witnessed a high incidence of commercialization in majority of the mandals where suicides have occurred. In contrast to Warangal, Anantapur and Guntur districts, the extent of commercialization is high in majority of the mandals in Mahabubnagar. The higher degree of commercialization along with higher dependence on groundwater for irrigation is leading to higher incidence of suicides in all the sample districts except in Mahabubnagar. In Mahabubnagar, the larger degree of commercialization is leading to higher degree of diversification of commercial crops, wherein low value commercial crops also occupied larger space. Thus, the dependence on ground water for irrigation is ultimately the leading factor, given the variations in the levels of commercialization, contributing to the suicides across all the mandals in the sample districts. It is also evident from the suicide patterns across the mandals that the incidence of suicides is high where the over exploitation of ground water for irrigation is high. The over exploitation of ground water in the mandals which frequently encounter drought poses severe threat to the sustainability of agriculture and hence survival of the farming community, given the extent of commercialization. The higher incidences of suicides are reported in the drought declared mandals in Warangal and Guntur where as the entire districts are drought declared in the case of Anantapur and Mahbubnagar. The competition among the farmers in extracting ground water in these mandals leads to more failures of wells, emergence of low water yielding wells and high cost for the extraction of one unit of water. All these ultimately result in heavy fixed capital requirements. Experience from the villages corresponds to these trends where heavy individualized expenditures have been incurred for water. It is evident that there is high correlation between the incidence of suicides and the extent of dependence on ground water for irrigation and the extent of dependence on commercial crops for generating income from agriculture. The household analysis reveals that most suicide households are nuclear in type, a new generation of farmers, mostly belonging to the backward castes and also falling into the small- marginal class, growing non food crops under ground water source of irrigation in the dry land areas of Andhra Pradesh. Though risk factors point more towards idiosyncratic (psychological) factors they are rooted in economic factors (for details see Revathi E, 2007).
Gender vulnerability
The social consequence of suicides is immense on the deceased household. The pressure of unpaid debts remained on the women persistently. Delayed payment of relief from government9, though was useful in settlement of debts but in most cases it also witnessed sale of assets unable to bear the pressure of debts. Kinship, community, local governance, political parties intervened to some extent in settlement of debts and in reducing the pressure of repayment, phasing it and also waiving or standardizing the interest rate. In the pre suicide situation most women used to work in the farm as wage labour or in their own farm. But in the post suicide situation as cultivator they had to own up the entire responsibility of running it or as agriculture labour had to diversify to casual wage work to support the family. Women belonging to the middle and lower social groups wound up most of the debts with help of government relief package, leased out land and took to wage labour thereby slipping into unstable occupations and incomes. Where they took up cultivation it was a difficult task in terms of lack of extension, information of markets, interface with markets etc. Besides, the insufficient infrastructure in terms of power, irrigation also puts them to innumerable difficulties. Women had to take up new roles, the men roles in addition to their own in order to set the household economy in place. In this process they are innovative, search for ways of having assured income sources. Women do not tend to take risks, as experience deters them to do so; instead they consolidate and attempt to make a safe living.
Intergenerational transmission of shocks of distress
The social tragedy of suicides also had deleterious effect on the children. Children are pulled out of school and put to work as there is desperate need for additional hands for work and income. Girls are married off earlier than normal in a hurry to complete the responsibilities early and for fear of expenses and newly perceived vulnerability of the family. Developmental opportunities of the child are affected in a big way. Children age faster in these troubled times with early entry into labour force, and marriage. The efforts of the parents to move out of poverty have resulted in transmitting distress to the next generation thus pushing them into chronic poverty.
Political fallout
The major fallout of the neo liberal reforms which had their telling effect on agriculture was the debacle of Telugu Desam party in the Andhra Pradesh state elections in 2004. The nine year long regime of Chandrababu Naidu (the then Chief minister) stood as a symbol of reforms, viz liberalization, privatization and globalization during which agitations took place in protest of hike in power and water tariff. From the mid nineties the movement for separate state once again gained momentum. This time agricultural distress, farmers’ suicides and irrigation became the major issues. A separate political party the Telangana Rashtra Samiti emerged in 2001 to spearhead the movement for separate state for the Telangana region through democratic political process. Naxalite insurgency mostly centered in the Telangana region also joined hands against the TDP regime. The major outcome of the regime change is the comeback of agriculture to the development agenda. This could be attributed to the democratic space utilized by the people. The present political regime took few steps (temporary and long run) for the amelioration of farming community as promised in election manifesto. Regulatory measures (legal) regarding inputs like seeds, bio fertilizers, interventions in input and output markets through self help group network promoted by the state, state and NGO partnership in popularizing reduced cost of cultivation methods10, organizing farmers groups as an agency are few initiatives taken. The measures of free power, and low interest loans for farmers have problems due to inadequate supply side factors. Besides, the state government has also taken up irrigation development programme (Jalayagnam) in a big way with an estimated cost of Rs 93,000 crores. Twenty six projects are contemplated to irrigate 59 lakh hectares, of which 43 lakh hectares will be in the Coastal Andhra region (Policy statement for irrigation, GOAP, 2005-06). Even after successful completion of Jalayagnam, the ratio of irrigation between Telangana and Coastal Andhra would be at 1:2.7 (Vidyasagar Rao R, 2006). The regions facing acute agrarian distress which is manifested with high number of suicides, instead of getting priority in creation of public irrigation are being denied of it. The issues of agrarian distress and farmers suicides have become handy for opposition parties which manifest nothing less than political opportunism.
Section V
Summary and conclusions
The agricultural growth process which has taken place till the decade of eighties has not been inclusive of regions and certain social groups. The superimposition of neo liberal reforms on the unequal structures, have accentuated the process of exclusion. The economically backward regions and more so, the vulnerable groups like the small- marginal class and socially backward tenants and farmers have borne the brunt of reforms. This is the section which in the process of getting empowered had been disempowered due to lack of policy support. The structural changes in agriculture and the policy shifts lead to a process of ‘individualisation’ where farmers are vertically linked to the market but not related within themselves because of loss of interdependence. The social cost of this process unfolds in terms of loss of negotiating skills for the farmers with both state and market. Moreover there is increased social and economic burden on women. The economic costs are reflected in terms of reduced growth, deceleration in rural economy and slow reduction of poverty. The political outcomes of reforms can be seen in terms of regime change, and renewed demand for separate state. The negative outcomes of neo liberal reforms is increasingly taking the shape of political movements spearheaded by all shades from the radical left to the parliamentary left to that of the right wing parties. However the parliamentary left parties are on the lead in identifying issues for struggle with close interaction with the people. This is also resulting in political competition among the parties to bring peoples’ issues onto the political and development agenda of the state. Such attempts have been successful too. Given the inevitability of reforms it is imperative that some initiatives need be taken by the state to strengthen the rural economy. This could be in the form of sequencing of the reforms, strengthening the pre conditions necessary to cope with the markets by strengthening farmers’ institutions and also by taking a rigorous regulatory role to get markets right.
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Subramanyam S and P Aparna (2007), Growth and Structural Changes in Andhra Pradesh Agriculture, Background paper submitted to Human Development Report, CESS
Reddy K S and P.Prudhvikar Reddy, 2006, "Banking Sector Reforms and Equity A sub-Regional Analysis” in Rao R S, V.Hanumantha Rao and N. Venugopal (eds.) – Chapter 30, Fifty Years of Andhra Pradesh 1956 – 2006, Hyderabad : Centre for Documentation, Research and Communication
Report of Sub Group on ‘Gender and Agriculture’ ( 2007) : Submitted to Working Group on Gender Issues, Panchayat Raj Institutions, Public Private Partnership, Innovative Finance and Micro Finance in Agriculture for the Eleventh Plan(2007-2012), Planning Commission, New Delhi
Report of the Commission on Farmers’ Welfare , (2004) Government of Andhra Pradesh” www.macroscan.net/pol/apro5/pdf
Venkatanarayana, M and Jain, Varinder (2004) "Telangana’s Agricultural Growth Experience”, Economic and Political Weekly, May 29.
Vidyasagar Rao R (2006), Painful story of Irrigation Projects’, 27 September, Indian Express
World Bank (2003) Unlocking the Growth Opportunities in Andhra Pradesh, Poverty Reduction and Economic Management Sector Unit, South Asia Region, World Bank, New Delhi.
Revathi is a fellow at the Centre for Economic and Social Studies, Nizamiah Observatory Campus, Hyderabad, India.
De Helling 2007/3
