Mohan Kanda Committee recommendations and issues of concerns

Mohan Kanda Committee on Crop Holiday in AP has submitted its report.  While the committee has adopted a process of consulting various groups and organsations and visiting the farmers who are on the war front declaring the crop holiday, they were silent on many important and critical issues.  for example on the mechanisms of fixing prices, on increasing tenancy costs, increasing absentee land lords etc.  The issue is primarily seen as ‘increased labor costs’ due to NREGA and solutions are seen as ‘Heavy Mechanisation’ (Recently govt announced to set up farmer service centre each costing Rs. 75 lakhs) and linking NREGA .  Allowing exports are seen as a major solution for price rise where as this only benefited the millers and traders, and the price gains were never passed on to farmers.

Download Mohan Kanda Committee Report on ‘Crop Holiday’ in AP


  Farmers’ demand Committee Recommendations Government Response Our concern
1 The closure of canals by 1st April & opening by 15th May Recommended based on water availability Agreed
2 Take up repairs and maintenance of canals Modernization of canals in a phased manner Agreed
3 Minimum Support Price to be increased Silent Written to centre to give bonus Government should adopt a transparent process of fixing the prices and should adopt a formula to fix a remunerative price.  Farmer commission’s rec of C2+50 % can be used as a guide.
4 State government to announce bonus of Rs. 200/q Not accepted Will ask centre The price differential between what state has recommended and centre has agreed should be paid as bonus by the state.
5 Government organizations to procure paddy like in Punjab Govt should encourage Markfed, Rytumitra saghas etc.  Farmers participation in such purchases should be encouraged This year 40-50 lakh tons would be purchased 80 % of the procurement should be by the government agencies only
6 Lack of storage space Additional storage space of 25 lakh tons to be created with proper share to konaseema Agreed. Additional 50 lakh ton warehouse facility would be created In addition to creating the storage space, good management systems should be put in place. Today existing space is not used properly.
7 Govt should give farm machinery at 70 % subsidy 3 thousand farmers service centres to be established in state, and 100 for konaseema Agreed.  Mechanization would be encouraged to address the labour shortage. The BIG Mechanization envisaged brings in its own set of ecological and social problems.  Government should look at small farm mechanization and also strengthening the skills of the labor
8 Speedy payment of Crop insurance claims Agreed Agreed.  Weather based insurance is beneficial and would be promoted Insurance should be broad base the claims should be based on village as a unit
9 Speedy payment of input subsidy Agreed Agreed
10 Promote coconut orchards. Govt should appoint a special additional director of horticulture Agreed.  Regional office of coir board to be set up.  Machinery for harvesting coconuts Will pressurize centre to set up regional councils of coconut and oil palm development This will create serious problem. Converting paddy fields into coconut orchards should be discouraged.
11 Scale of finance for paddy to be encouraged from Rs. 17,000 to 25,000/ha Agreed Will suggest to Centre and NABARD Similarly scale of finance for all crops to be increased and access should be increased to tenant farmers.
12 Agriculture works to be included under NREGA Basic infrastructure/ facilities for farming can be created under NREAGA Agreed. Will suggest to centre Labour subsidy to be extended to farming.  Mechanisms to be evolved so that all cultivators can get access to this.  Any other modification will defeat the spirit of NREGA as workers right
13 Crop insurance to be implemented Modified crop insurance to be implemented in West Godavari dist Agreed
14 Crop diversification should be encouraged Fisheries, oil palm, dairy to be encouraged Will promote oil pal, dairy, fisheries. Should be completely discouraged.  This area is not suitable for Oil palm the yields are very low.  The ecological problems with shift towards fisheries and prawn cultivation in paddy areas is well known in this area.  Supreme court has already imposed a ban on this.
15   Govt should announce MSPs and decision on exports should be announced before the season starting.  Levi should be decreased from 75 to 50 % Centre has already lifted ban on exports.  Will ask centre to continue this.  State always has excess production Export is not a panacea.  Export ban lift will only help the millers and the benefits were never passed on to the farmers.



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