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Who's afraid of WTO?

Tripat Kaur

There is an air of greater co-operation among farmers in Punjab. A number of agricultural associations are being born in a State that is fondly regarded as the `bread basket of the country', to fight the perceived threat to small farmers under the ambit of the World Trade Organisation (WTO).

Apart from procuring farming equipment and other material in bulk to avail of discounts, the associations are also exploring prospects for collective marketing of their produce both within the country and abroad.

``Punjab farmers simply don't understand the dynamics of marketing. With the WTO in place, marketing of their produce is going to be crucial. These associations are a big advantage as a farmer might be scared to go in for a new concept like Internet mark eting; if the concept is explained to a group of farmers and his peers also think of going in for it, he might consider it,'' says A.S. Dhatt, Director, Post-Harvest Technology Centre, Punjab Agriculture University (PAU), Ludhiana.

The centre was set up by the Punjab Government to train farmers in effective harvest techniques and proper storage of produce. The centre will also establish a quality control board to ensure that the agricultural produce meets international standards.

The New Age Fruit Growers' Association (NAFGA) in Hoshiarpur, for instance, has begun selling its produce over the Net. The association's 31 members are among the first in Punjab to tap the Internet for agricultural marketing.

``Internet marketing is an additional avenue for us. We had been exporting kinoo since 1993 to Sri Lanka, Mauritius, Singapore, Kenya and the UK. However, we are not doing it directly; a Bangalore-based company, Sanjivini Infotech Pvt Ltd., gets the orde r for us and we dispatch the consignment after the payment is made,'' says Deepak Puri, member of the association.

Puri recently despatched two consignments after they were ordered online through the intermediary company. Association members soon hope to sell online on their own.

``We would mainly like to use the Internet for inter-State marketing, and not much for exports, as we already have good contacts in the international markets,'' says Puri.

Abohar Fruit Growers' Association (AFGA), which was started about three months ago, is currently involved in procuring farm equipment such as tractors on hire. The 100-member association also buys insecticide and pesticide in bulk, availing of substantia l discounts.

As its president, G.S. Chauhan, explains, ``We had mainly three aims in starting this association. The first is to bring small farmers together. This way they interact with each other and can help their peers during tough times. The second is information dissemination. We, as an association, can call experts and discuss our problems which is not possible for an individual farmer to do. Thirdly, we will buy material such as seeds in bulk to get maximum discount. We have collective marketing on our agenda but we haven't started it as yet.''

And collective spirit, it appears, is the prime mover for these associations. ``The land holdings are very small in Punjab and an individual farmer cannot afford to buy expensive machinery required for post-horticulture processes. Our association buys ma chinery collectively which ensures savings of around Rs 10,000 to Rs 15,000 for each farmer every year,'' says NAFGA president Bhagwant Singh.

Some NAFGA members have started exporting fruits such as kinoo, which are largely sourced from among themselves. The association is also actively involved in the dissemination of information -- it recently invited agricultural experts from Israel and the US to give them talks. For logistical reasons, only farmers living within a radius of 10 km are eligible to join the association.

The State Government is encouraging the formation of such associations which, it believes, will go a long way in protecting the interests of small farmers under the WTO regime.

``The formation of these associations might be an answer to a number of problems; it will enable farmers to export on their own. State Government agencies will help them procure orders and also fix standards,'' says Dhatt of PAU.

``In the long run, WTO will be beneficial to the agricultural sector as it encourages the formation of associations. Though the production will still be in the hands of individual farmers there will be increased cooperation in the dissemination of techno logy and information, production and post-harvest technologies and joint marketing of produce. The WTO era will also see the growth of agri-business companies which are likely to be formed by farmers themselves or by traders; these will enable better out put and improved economies of scale for the farmers,'' says A.R. Talwar, Managing Director, Punjab Agro Industries Corporation Ltd. and Punjab Agri Export Corporation Ltd.

Besides Internet marketing, NAFGA is actively trying to export kinoo to the US, a market that has remained untapped by Indian farmers for citrus exports. ``This would be my lifetime achievement. A New-York based company contacted us for the export and, a t present, it is at sample stage. They are very particular about the quality and we have sent the fruit to PAU for tests. The company also wants to know our spray schedule for pesticide and fertilisers; based on the information they would decide whether to buy from us or not,'' says Puri excitedly.

Even as experts warn that the WTO regime would hit the small farmer the hardest, in Punjab, this section of the agricultural community seems to have found strength in numbers.