It is time to revive the farm co-operative movement

Japan has a book, take a leaf out ASHOK B SHARMA Financial Express : Monday, July 17, 2006

In India, farming is the livelihood of about 70% of the population. Corporate farming, if encouraged on a large scale, will result in displacement of many farmers, without providing any alternate source of livelihood. What is needed is a farmer-centric policy for agriculture. India is a country with a large number of small and marginal farmers with small landholdings. We should follow how a developed country like Japan is protecting its farmers.

Japan, too, is a country with small landholdings. The East Asian island, which was earlier an exporter of rice, turned into a net food importer. Japan today imports 60% of food to meet its requirement. But it is determined to protect 40% of its domestic production. Japan has a network of cooperatives under apex body Ja Zenchu, which supply inputs, credit and insurance policies to farmer, and also market their produces. Ja Zenchu guides its 47 prefectural units in the operation, and keeps a vigilant watch on the emerging situations in the global market. The network of Japanese co-operatives cover 98% of the farm sector, and has been successful in keeping the corporates and MNCs at bay. The government agency, Japan Association for International Collaboration for Agriculture and Forestry (Jaicaf), assists NGOs for development of the farm sector. Japanese farmers are protected and benefited by this large network of co-operatives.

It is high time the policy makers in India think of replicating this experience. Japan is successful in maintaining its traditional food habits in the era of globalisation. Majority of the Japanese still have a strong preference for traditional Japanese food. This is in contrast to the emerging situation in Indian metros, where the section of the elite class is preferring “novel food” —packaged food, fast food, and the like. The policy makers are also encouraging this trend on the pretext that it caters well to the busy schedule of working couples.

A sinister campaign is being launched that street vendors selling ethnic food are “not hygienic”. This needs to be replaced by packaged foods of food companies. The process has already begun with displacement of vendors in railway stations. In India, since independence, farm co-operatives was encouraged as a matter of policy. But the co-operative movement could not be effective due to political interference and excessive bureaucratic control. Past is past. It is time to revive the farm co-operative movement in the country.