Economic Highlights
New
Delhi, 8 June 2007
PM’s Revival Package
Strategy for Agriculture Needed
By Dr. Vinod Mehta
After highlighting the
problems of the agricultural sector in the Economic Survey and making large allocations
to the rural sector, including agriculture, in the budget, the Prime Minister
recently announced a Rs.25,000-crore revival package for the agricultural
sector. The Centre has sought the States’ active participation in the revival
programme. The money will be used to
increase the output of grain, provide assistance
for irrigation, research and restructuring of fertilizer subsidy programme etc.
The growth
of the agricultural sector is critical to sustain nine per cent growth rate of
the economy as a whole, in curbing inflation and in helping restrict large
scale imports of grain and pulses as the prices of these products are very high
in the international market. A year ago
the Deputy Chairman of the Planning Commission
observed: “The major weakness of the
economy is the agricultural growth, which had decelerated from 3.2% in the
period from 1980-81 to 1995-96, to an average of below 2% subsequently.” This is in sharp contrast to the performance
of the manufacturing and the service sectors which are recording double digit
growth.
Professor
M.S. Swaminathan, the architect of Green Revolution in India, has been
expressing his concern for a couple
of years now over the trends in the agricultural sector. He is disturbed by the
fact that there are no real policies in the agricultural sector except
subsidies. He is also agitated over the fact that nothing is being done to
check the conversion of prime agricultural land into non-farming land. Commenting on the revival package Prof.
Swaminathan says that the allocation is not just enough to take up all the
schemes as indicated therein, but should be used by the States to narrow the
yield gaps “in the second fertile crescent comprising West Bengal,
Chhattisgarh, Bihar and Orissa.”
Increasing the yield per hectare is urgent since
independent studies have pointed out that the things will not be the same in 20
years from now. Researchers have shown
that if the food productivity continues to decline the demand for cereals will
exceed domestic production by 23 million metric tonnes by 2020. India by then will be a net
importer of foodgrain to feed its population.
It is common knowledge that productivity of Indian
agriculture is much less than the agricultural productivity of other
countries, and that the Indian
agriculture has a long way to go to realize its goals; we have now no option
left but to make conscious efforts to
increase our productivity and bring it at par with the international standards.
But productivity cannot be increased by enhancing
allocations; it requires high quality research to develop high yielding
varieties of seeds and then guide farmers to use them. The potential of
increasing agricultural productivity in India is immense. If other
countries can get three to five times the production per hectare of any
agricultural product why can't India at least
double its output per hectare of the agricultural produce? The potential for such an increase exists and
there is no reason why India
cannot achieve this. But it calls for a well thought out strategy based on
agro-climatic zones, which is absent in this revival package.
It is really surprising that in
spite of the fact that India
has spent so much on agricultural research, it has not yet been able to produce
seeds of high yielding varieties of international standards--seeds that can
change the face of Indian agriculture.
There has to be some match
between the funds we spend on agricultural research and the actual results we
get in the form of produce per hectare.
It is also a known fact that India is not
using its agricultural inputs to the optimum level. A country like China which has less cultivable land than India has developed one of
the best water management systems to get the maximum advantage. Similarly, Israel has turned desert into an
arid land again mainly through its water management system.
Sixty years after independence our agriculture is
still dependent on rainfall and any shortfall in rainfall during any year can
severely upset our crop targets. And
whatever water we have for the agricultural sector, most of it goes waste
because of mismanagement. A large number
of countries have gone in for drip irrigation system, which at the moment can
be said to be the best irrigation system for a number of crops.
Therefore, we need to rethink our irrigation policy
and either develop our own system or scout for one available with other
countries and, if possible, outrightly
buy the technology and implement it.
While it will take time to develop new high yielding
varieties of seeds and start new irrigation works, one thing which the Centre
and the States can do together on an urgent basis is to check the wastage of
grain, vegetables and fruit. It is
reported that one third of our total agricultural produce consisting of grain,
vegetables and fruit is wasted each year for want of storage and marketing
facilities as well as food processing
facilities; only two per cent of our agricultural produce is processed.
The food processing
facilities set up near the farms will not only cut this wastage but also
provide more money to the farmers. Part
of the package money should be used to storage cooperatives, marketing
cooperatives and processing
cooperatives. The private sector can
also be encouraged to set up these facilities. The Minister for Food Processing has plans for setting up more than 100 food
parks to encourage food processing
industry; there are also plans to allow foreign investment in these parks.
It is common knowledge that the
development of agriculture has been uneven in the country; some States like
Punjab, Harayana and U,P. have gone through the phase of green revolution while
States like Orissa and Bihar have yet to go through this phase. This implies that we have still a vast
untapped potential for the development of agriculture in the country. The revival package will hopefully address this question.
Instead of having an all India agricultural strategy it may be more
meaningful to have a state specific agricultural strategy with due respect to
climatic zones within the overall general national agricultural strategy so
that the specific local cultural, social and economic factors as well as
climatic factors could be taken into account for the rapid development of the
agricultural sector.
Therefore, in order to avoid any
shortfall in grain production and other agricultural products relative to our
needs as has been witnessed
recently, we must move fast to increase our productivity. There is an urgent
need to have a region-wise agricultural plan for production of grain and
commercial crops. There is also a need to revamp the agricultural research to
make it more meaningful. A quick breakthrough in the agricultural sector is
needed to keep the overall growth rate over nine per cent.---INFA
(Copyright, India
News and Feature Alliance)
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