There is a perception that the government’s move to control the price of the seed would stifle innovation and hurt private investment in the seed sector in the long term. What is your view on this?
It is one of government’s responsibilities to fix input and output prices in a manner that the farmer, the consumer and the producer all feel comfortable. Seed prices are important and when hybrid seeds are involved the farmers have to buy the seed every year. I had, therefore, suggested that in the case of costly seeds, like that of Bt cotton, the company should also give an insurance policy which will insulate the farmer from unforeseen calamities like drought, floods, hailstorm, etc. The policy should be a win-win for all leading to accelerated agricultural growth coupled with the economic well-being of the farmer and the company.
Should the farmer (market) be allowed to decide the price?
The price of seed should be fixed in the same manner as the price of grain taking into account the cost of production, the amount invested in research, etc. Normally the State Seed Committee suggests the price. A mechanism similar to that of pricing of grains could be developed for seeds. The farmer alone will not be able to suggest a price which takes into account the investment involved
How crucial is the role of private sector in the country’s agri R&D, especially in the context of stagnating productivity and shrinking arable land?
The private sector can play a useful role provided they help farmers to improve crop productivity, stability of production and profitability. Ultimately, it is the farmer’s well-being that will ensure the well-being of the private or public sector. A balanced view is necessary. The private sector should also remember that a majority of our farmers have very small holdings and very limited risk taking capacity. The cost of production, risk involved and the returns expected are not favourable to the farmers today. This is why I recommended the formula C2 plus 50 per cent with reference to pricing of grains. We need in our country a dynamic public sector, private sector and co-operative sector in the field of agriculture. Farmers belong to the private sector since they own the land and they are the decision makers. Farming is the largest private sector industry.
In the context of diminishing yields and new pesticide related challenges to Bt cotton, do we have to go back to concept promoting seed diversity and how do we do that? Does it call for a policy correction?
Genetic heterogeneity is essential to ensure that the crop does not suffer from vulnerability to pests and diseases. Genetic homogeneity enhances vulnerability, while genetic heterogeneity reduces risks. Therefore, in the land use plan as well as in farming system design, seed diversity should be a basic consideration. Our farming is in a critical stage from the point of view of the economic viability of agriculture. Unless agriculture becomes economically viable and intellectually stimulating, it will be difficult to attract and retain youth in farming.
Source : The Hindu Business Line