Futures trading can favour farmers: Swaminathan

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Noted agriculture scientist M S Swaminathan has said that futures trading could affect farmers “favourably” if we have the infrastructure.

When asked whether futures trading is affecting farmers community, he said, “At the moment according to Abhijit Sen Committee it has not affected either favourably or unfavourably. It could be favourable if you have infrastructure.”

He said that there was a belief that the futures trading could lead to speculative holding, while it is not benefitting the small producers, it could cause some problem to the consumes.

He was speaking to mediapersons after releasing a study report by M S Swaminathan Research Foundation on measures needed on agrarian distress in Idukki district of Kerala. The study has made a number of suggestions including how to improve crops, storage and warehousing facilities.

The Foundation was asked by the Agriculture Ministry to review the position relating to the ecological security of Alappuzha and Idukki districts and to suggest steps for enhancing livelihood security in an environmentally sustainable manner.

Due to high production cost of major crops and its volatile prices, small farmers who constitute majoritym of the farming population in the area have accumulated debt burden exceeding Rs 700 crore.

Over 80% of this debt was due to crop loans to small and marginal farmers, he said.

The study had recommended a total package of Rs 1,876 crore, out of which Rs 750 crore would be used for waiving loans, he said. He said the proposed establishment of a ‘Spices Park’was a welcome initiative to promote value addition, product development and trade.

In a separate conference organised by the Rubber Board Swaminathan advised plantation industry that they should understand the impact of climate change and adapt itself accordingly.Pointing that climate change was a mega threat to human security, he said there was the need for synergy between technology and public policy.