Reform of Rural India

Read a good article from R Gopalkrishnan or RG as he is popularly known as. Shows his masterly insights into Indian agriculture... a combination of facts & views on what needs to be done... A very timely reminder..

RG calls for a "shift in public policy on agriculture to markets and competition from the traditional ones of regulation and support, and a view of agriculture as an agribusiness. "
Public investment in agriculture has declined from 1.6% of GDP in the early ‘90s to 1.3% of GDP in 1998-2002. The agricultural production index has stagnated and the productivity of agriculture has made no progress.
He also says that there is an ever widening gulf between agri & non-agri per capita income in our country having wide social implications.
Money can reach the poor through public investment in agriculture (rural roads, irrigation, marketing infrastructure) and employment (rural industries, public works).
We need to restore to the farmer in a calibrated way the decisions on agricultural inputs, production volume, product mix, hedging systems, marketing decisions, market access and so on.

Comments: This is a similar view echoed by CK Prahlad, who says that India has to tap its potential in Rural India & create opportuniities for the poor so that they can take part in the reform process. In fact he is now talking to giants like HLL to increase their rural reach. The government has to support this kind of initiative in all possible manner. This will ensure that the majority of our population which is in rural India is in sync with the urban India.