Sunday, March 11, 2007

The UPA Government has put together a strategy for 4.1 % farm growth


The UPA Government has put together a foolproof strategy to achieve 4.1 percent farm growth annually. And, the Government proposes to involve private Indian corporates in a big way to ensure this growth rate.

While Prime Minister Dr Manmohan Singh proposes to dovetail the regional plans into the government’s farm growth strategy, the Union Agriculture Minister Sharad Pawar has held a series of meetings on this issue during last one week in the aftermath of Finance Minister P.Chidambaram’s Union Budget. This strategy paper is likely to be put before the Union Cabinet for its consent shortly.

This assumes significance in the wake recent reverses the ruling alliance experienced in states like Uttaranchal and Punjab where the farm policy and farmers suicides became a major plank for the opposition parties.

Agriculture Ministry has decided to retain its earlier projection for 4.1 percent annual growth in farm sector to ensure 9 percent GDP growth.

Having taken this decision, the Agriculture Ministry is fine-tuning its plans for expansion and enhancing the farm yields. Sources divulged that a clutch of measures would be initiated during next few months to ensure the 4 percent plus agriculture growth. From fertilizers pricing policy to irrigation, seeds, crop husbandry, quality of seeds to bringing more land under farm sector would be addressed sources said.

A 19-page draft note has been put together by the Agriculture Ministry that also targets an additional 15 million hectares land to be brought under irrigation and made suitable for agriculture.

The draft note on “roadmap to achieve 4 percent growth” with www.economictimes.com has proposed “restructuring policies for achieving accelerated, broad-based and inclusive growth” in the entire chain of activities associated with the farm sector.

For instance, in the fertilizers sector, the UPA Government proposes “reforms in pricing policy” to discourage imbalanced use of farm nutrients, ensure balanced availability and encourage use of non-chemical fertilizers. The centre, according to sources, would also work on a strategy to deliver subsidy directly to farmers. Finance Minister has already talked about a pilot project in the Union Budget last month.



Second major issue flagged by the Government is water management. Currently, only 40 percent of 190 million hectares gross cropped area has assured irrigation facilities. The draft note projects the potential for irrigating at least 140 million hectares. Under the Bharat Nirman, the centre already has plans to add 10 million hectares to irrigate farm lands. Another, 5 million hectares is sought to be included in this target.

Apart from giving a leg up to irrigation infrastructure with a four-fold approach, the Agriculture Ministry has proposed a shift in its policy by taking the irrigation policy to village level for “efficient use of surface and ground water”.

In order to ensure better quality seeds, the Agriculture Ministry has unambiguously recommended swift import of planting material for fruits, vegetables and most of the crops. This will be backed by enhanced focus to develop high quality seeds by domestic research organizations.

Interestingly enough, the Agriculture Ministry has also laid major emphasis on revamp and expansion of dairy & milk products, meat based products, livestock etc. Fisheries are another area where the Government proposes to take steps for making India a major exporter of fishery products. The draft paper has talked about improving the yield in 2.41 million hectares under ponds and tacks to develop fisheries.

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