Main sources of instability in the WANA region and the implications for India :
The West Asia North Africa (WANA) region, with Morocco in the west, Pakistan and Afghanistan in the east, Turkey in the north, and Ethiopia and Sudan in the south, is characterized by high population growth, low and erratic rainfall, limited arable land, and severely limited water resources. There are very few possibilities for expansion of farming areas or irrigation. Methods for more efficient and sustainable use of these limited resources must be found. There is more absolute poverty and incidence of poverty in rural than urban areas in WANA. Even though infrastructure in the rural sector has improved in the last twenty years, there has not been a proportional increase in employment or poverty alleviation. Economic disparities will continue to fuel migration from rural to urban areas and from poor to rich countries both within and outside the WANA region.WANA's agriculture employs large parts of the population; nearly 50 percent, for example in Turkey and Morocco. Women contribute about half the agricultural labor, well above their share of the total labor force.
India gave considerable importance to WANA region in view of its geopolitical importance. It was important for India to see a resolution of the Arab-Israeli problem as it impacted on our interests in the region. Since it did not have an Embassy in Israel, India’s efforts in this direction were made mostly through the diplomacy at the UN. The basic goal was a peace settlement, which recognized Israel’s right to exist in peace and security in the region. The reasons for lack of progress are many and complex, but the most important was the delay on the part of Arab States in recognizing the realities, and instead, focusing on the legalities. By the time recognized them, the realities had become much more adverse from their point of view. Another important foreign policy goal of India was to prevent Islamisation of the Kashmir issue by Pakistan in the WANA countries. Pakistan’s efforts had to be consistently and vigorously countered. It consumed a lot of our energy and resources, but there was no choice, because WANA was an important arena of contest, as far as Kashmir issue was concerned.
What is the envisaged contribution of Farmer Producer organizations (FPO)? How far have they lived up to expectations?
A farmer producer organisation is typically a
company consisting only farmers and producers, but
formed under the Indian Companies Act 1956 as amended in 2002. FPO is
one of the important initiatives taken by the Department of Agriculture and
Cooperation of the Ministry of Agriculture to mainstream the idea of promoting
and strengthening member-based institutions of farmers. As per the concept,
farmers, who are the producers of agricultural products, can form groups and
register themselves under the Indian Companies Act. These can be created both
at State, cluster, and village levels. It is aimed at engaging the farmer companies
to procure agricultural products and sell them. Supply of inputs such as seed,
fertilizer and machinery, market linkages, training & networking and
financial and technical advice are also among the major activities of FPO. The
Small Farmers’ Agribusiness Consortium (SFAC) has been nominated as a central
procurement agency to undertake price support operations under Minimum Support
Price (MSP) for pulses and oilseeds through the FPO’s.
Agriculture is characterized by high
seasonality, high price volatility, long lead times, and complex value chains.
The loan products for this sector therefore need to be worked out
appropriately. There are two-levels at which loan products need to be tailored
for FPOs: (a) at the level of the farmer-member; and (b) at the FPO-level. For
farmer-members, there can be Kisan Credit Cards for facilitating funding
requirements at the time of initial production, and term loans for further
developmental activities. At the level of the FPO, there can be products that
enable effective service provision to members: support for hiring of
machinery/tools etc. POs form a core part of the strategy to lift small and
marginal farmers out of poverty and enhance their competitiveness in
agricultural markets. If we consider this as the story of a ‘second Green
Revolution’, it can only become reality if measures that promote sustainable
and inclusive agricultural development are taken within the available
resources. Producer Organisations potentially offer a unique path towards
achieving this, and therefore should be promoted and supported effectively.
Producer companies can help smallholder farmers participate
in emerging high-value markets, such as the export market and the unfolding
modern retail sector in India. As elsewhere in the developing world, in India,
small farmers’ livelihoods are being threatened due to the liberalization and
privatization of Indian agriculture and the increasing interest of private
capital in the agribusiness sector. The withdrawal of the state from productive
and economic functions, and changes in the organization of marketing channels,
present new challenges for small-scale farmers. In this environment of greater
instability and competition, organization and collective action can help to
enhance farmers’ competitiveness and increase their advantage in emerging market
opportunities. We build on the ideas of value-chain governance and
collective-action literature and introduce the functions and organizational
structure of producer companies in India within this context. On the basis of a
case study of a specific producer company in Maharashtra, which produces and
markets mango and cashew nuts, we discuss the potential benefits for rural
communities and the re-empowering effect of this form of farmer organization.
Keywords: collective action, value chains, governance, agri-food network,
smallholder, India.
