There is lack of R & D in agriculture

ekantipur, 14-Feb-09

Diwakar Golcha, 54, is vice chairman of Golcha Organization. He joined his family business in 1974 entering its agro-based industries. He has been involved in setting up sugar, rice, daal, flour mills as well as other factories like steel. At a time when the government is talking about increasing the role of agro-based industries he talked to The Kathmandu Post about his experiences and why the agro-based businesses have not taken off in the past. Excerpts:

Your family has been involved in the agro-business for a long time.

My great grandfather was displaced from present-day Bangladesh before the Indian partition. He used to distribute jute seeds to the farmers in Biratnagar area, buy their jute and sell it in Calcutta. Later a jute mill was established in Kathihar in Bihar. Then the Biratnagar Jute Mills was set up. All this was before the Rana rule ended. We used to deal in company currency. Nepal Bank Limited was opened later. When I got into the jute business in 1976 we used to export to 33 countries. Then we set up daal and rice mills as well as and sugar and flour in the 1970s and 80s.

There seems to be a lot of potential. Where is the state lagging?

There is very little priority given to research and development. There should be different institutes like a jute development board or a sugar institute. These could develop and introduce new varieties of different crops. The fertility of the soil is going down because of use of fertilizer which has created a layer between the topsoil and subsoil. There could be research on what can be done about it. There is also a lack of orientation to farmers. For example, a two-feet gap is needed between lines of sugarcane plants for optimum production. In between those lines there could be intercropping and sweet potatoes and pulses could be grown. But who will tell farmers that or for that matter which is the best variety.

Surely, the state must have done something.

It has opened up agricultural research centres and they have done some work but we are talking about massive extension programme. There needs to be more interaction between experts and the people. We have technical workers regularly visiting every village in Morang. New varieties of crops developed have to be gradually planted in large areas. The determination has to be there and also skilled manpower is required. The sugarcane research centre in Jitpur, for example, has not been able to take off. The people are eager to learn. In Rautahat district when we introduced sugar cane in the 1990s there were three tractors but now there are 1,200 - all purchased from the profits.

Why can't that be done?

Our education system is defective. Students are not taught objectively. People think that SLC is a very worthy degree but what use is it in the job market? Once someone passes SLC they do not want to be involved in agriculture. They want a job in a proper office but they have no skills. Institutes have to be set up where students are given qualifications to be able to go and work in the field. There is an agricultural institute but there needs to be more across the country and students encouraged to study there.

How has the lack of subsidy for fertiliser affected the agricultural sector?

Our land is addicted to fertiliser but the government has removed subsidies on it. The Agricultural Inputs Corporation and later the private sector imported fertiliser to sell to farmers but there was a big loss. In India fertilisers are heavily subdised and costs only 15 to 20 percent of the international market prices. As a result there is a lot of smuggling of fertilisers across the border and farmers do not want to buy non-subdised expensive fertiliser. But the government does not seem to be concerned. When the Prime Miniser had gone to India last year I had suggested that he only ask for fertiliser.

Why can't the labour disputes be resolved permanently?

A reported 200,000 enter the labour market every year but only some 10,000 persons are absorbed because of the state of our economy. No one wants to lose his or her job because of the excessive politicization in all aspects of society including labour, workers do not feel that they can get sacked if they do not perform well. There are as many as 15 unions in one factory. Industrialists have reached a stage when they will say enough is enough and shut down factories. That is what happened in the case of Jyoti Spinning Mill which had 2,500 workers.

How do think things will turn out?

For the past two and half years there has been a wave of labour militancy. At this rate this will get worse before they can get better. Unless there is a realization that the conflict does not benefit anyone and there is cooperation between the industrialists and the workers, things will not be better.