The share of the rural economy is about one-fourth of the country's total. For a predominantly agricultural country this looks to be a misfit. But the rapid growth of service sector and manpower exports in the past two decades has actually made this possible. This is not to mean that village economy has not grown. Actually the overwhelming majority of the remittance earners are unlettered or little educated young people from villages. Also, agricultural growth has been phenomenal in that its share is 17.3 per cent as against industry's 28.6 per cent and service sector's 54.1 per cent, according to 2012 estimates.
This remarkable achievement in agriculture has been reflected in the fact that the country has turned into more or less self-sufficient in food, rice in particular, overcoming its stigma as a 'basket case'. Then the diversification of agricultural produces in recent years is a further indication of the village economy going still stronger. What is especially salubrious is that the economy at the village level has not created an outrageous disparity among people living there. Although official records reckon five per cent unemployment in the country's labour force, farm hands are in high demand particularly in cultivation and harvesting seasons. Gone are the days when labourers earned a pittance and remained unemployed for half of the year.
No wonder, the country's per capita income rose to record high at US$2,100 (adjusted by purchasing power parity) in the year 2012. Had the country been forced to import food as it did in the past, it would have been impossible to maintain the growth trajectory. The growth of the village economy could be even more spectacular if transportation, communication and marketing of village produces and products were better, easier and smoother. Unfortunately, middlemen and hoarders eat the cream while the growers are either deprived of the just prices or even compelled to dispose of their commodities at prices below their production cost in an artificially created market slump. The same commodity fetches double, treble, four fold or even more prices after a gap of mere months.
The agriculture extension department has done a wonderful job by promoting various high-yielding varieties of paddy and other crops including some exotic ones. They are in the know of the acreages under cultivation of different crops in districts or upazilas under their agricultural jurisdiction. Now this knowledge can be used effectively for administration of a food regime. At least they can tell if a farm produce is likely to be in short supply in a region or the entire country will face any such crisis. A coordinated monitoring and management system between the agriculture department and the local administration holds the key to improving the situation. But to that end, there is a need for developing the communication system where storage and transportation of agricultural commodities will be adequate and at least 20 to 50 per cent cheaper and within easy reach. The objective ought to be to elbow out the hoarders and middlemen from the marketing chain.
Bumper growth of potato, rice or onion poses a kind of problem completely different from other perishable items like cauliflower, cabbage, pineapples or tomatoes. Farmers have to sell some portion of their paddy right at the harvesting time simply because they have to meet some long overdue needs. The procurement drive by the government has proved an utter failure so far. If there were adequate storage facilities for potato, paddy or onion and the government procurement drive effective, hoarders and middlemen could not take any undue advantage of farmer's urgency. Farmers did not have to dispose of their produces at prices below their production costs. The same principle applies to onion and crops that have a long shelf life.
On the other hand, seasonal vegetables, most of which are perishable items, must reach the consumers within a specific period. But because of poor communication, price at the growers' level is at times a fraction of what it is in cities and other regions where such items do not grow. However not all perishable items have to be subjected to such an arbitrary demand and price variation. For example, mangoes, tomatoes and pineapples can be processed into pulps or juice and preserved in containers for sale round the year. Such initiatives undertaken by a number of companies have produced amazing results both for the producers and the agro-processors. The good work needs to be taken further ahead in order to administer a shot in the arm of the rural economy.
Clearly, there is need for bigger investment in villages preferably in developing infrastructure and agro-processing facilities. While the major share of investment has to be in infrastructure, the production facilities need not be of enormous size. Small and medium enterprises absorbing a sizeable segment of village labour will prove highly useful. This is also justified from the socio-economic strategic point of view.
In order to obviate further rural migration, this kind of employment generation at the grass-roots level is likely to be a better option for a country with an oversize population. Its geographic location and size also cannot offer challenging industrial options without putting at risk its environment and ecology. The axiom that the country will survive if its villages are in conditions of sustaining themselves still holds good. So, the policy-makers and planners of the country have to direct a greater focus on its villages.
nilratanhalder2000@yahoo.com
Need for greater focus on village economy
Nilratan Halder | Published: December 20, 2013 00:00:00 | Updated: November 30, 2024 06:01:00
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