Protecting the farmer
We give little thought to the farmer as
we consume our lunch. But his sweat and toil makes it possible to feed a
nation of 19 million. The farmer must be protected and given all
encouragement.
It is with this aim in mind that the Government has slapped an
additional customs duty of Rs. 10 per kilo on imported wheat flour and
increased the customs duty on imported rice from Rs. 9 to Rs. 20 per
kilo with immediate effect. The Finance and Planning Ministry said the
Government has taken this decision to protect the local paddy
cultivators and solve the problems encountered by them in marketing
their produce.
With the 2006 Maha Season at hand, this is a timely move. The gap
between the prices of better local rice varieties and imported ones had
narrowed, tempting the consumers to opt for the latter. The newly
introduced duty stricture will sharply raise the prices of foreign rice
while deterring large-scale rice imports, thus saving valuable foreign
exchange.
The termination of the wheat flour subsidy and the imposition of
additional duties will also help the paddy farmer. These measures have
reduced the demand for bread to some extent, though the Government has
assured that the new additional duty would not lead to an automatic rise
in bread prices as adequate wheat flour stocks are available locally.
Some may argue that an open economy is all about choice and that
consumers must not be penalised for wanting foreign goods. While there
is some substance in this view, one must not forget that many Western
countries which champion unbridled capitalism and economic liberation
are highly protective of their farming community. They are granted huge
subsidies and imported foods are taxed heavily. In fact, this is one of
the most contentious issues at world trade talks.
In that light, there is nothing wrong in a developing country such as
Sri Lanka adopting perfectly legitimate measures to protect the
indigenous farmer and agriculture. The Government has also introduced a
guaranteed price for paddy and a fertiliser subsidy. A guaranteed price
is essential to assure the farmer of the Government's commitment to
purchase paddy and to minimise the exploitation of farmers by
unscrupulous middlemen.
The proposed revival of the Paddy Marketing Board is another step in
the right direction. The fertiliser subsidy introduced by the Mahinda
Rajapakse administration has proved to be a huge boon to farmers
previously hindered by huge production costs. Fertiliser is vital for
modern-day farming and its availability at affordable prices should make
the farmers' lives easier.
That said, subsidies cannot be continued forever in a country facing
a myriad of economic challenges.
The long term goal of the authorities should be developing the
overall economy and raising the living standards of the farmer to a
level which will make him financially independent and strong.
The infusion of modern agricultural techniques which are less labour
intensive, the use of more disease resistant and high yielding seed
paddy varieties, proper storage and transport mechanisms and a viable
disaster mitigation plan (for instances when crops are affected by
natural disasters) are among other steps that should be considered by
agriculture authorities. The maintenance and the development of the
country's vast irrigation network is also pivotal to achieving healthy
harvests.
Agriculture is the mainstay of our economy.
The farmer is an indispensable cog in the economic wheel. Protecting
him is not solely the State's responsibility. Consumers also have a duty
to support the local farmer by giving priority to local produce. |