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LATEST NEWS UPDATES | Agri report calls for growth on a par with GDP by Sandip Das

Agri report calls for growth on a par with GDP by Sandip Das

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published Published on Mar 14, 2012   modified Modified on Mar 14, 2012
A report on ‘State of Indian Agriculture 2011-12’, tabled in the Lok Sabha on Tuesday, has called for reforms to ensure that the sector grows in tandem with the overall GDP of the country. The report says that “achieving an 8-9% rate of growth in the overall GDP may not deliver much in terms of poverty reduction unless agricultural growth accelerates”.
Admitting that the sector has undergone ‘significant structural changes’ in the form of a decrease in the share of GDP from 30% in 1990-91 to 14.5% in 2010-11, the report – tabled by agriculture minister Sharad Pawar – indicates a shift from the traditional agrarian economy towards a service-dominated one.

“This decrease in agriculture’s contribution to GDP has not been accompanied by a matching reduction in the share of agriculture in employment. About 52% of the total workforce is still employed by the farm sector, which makes more than a half of the Indian population dependent on agriculture for sustenance (NSS 66th Round),” says the report.

Calling for reforms, the report says: “All these factors point to just one thing: that agriculture has to be kept at the centre of any reform agenda or planning process, in order to make a significant dent on poverty and malnutrition, and to ensure long-term food security for the people.”

The report highlights the whole chain of intermediaries in agricultural markets that reduces 'farmer’s share in consumer’s price', while benefiting the retailers with 'high marketing margin', as a major challenge.

“Inefficiency in the wholesale markets results in a long chain of intermediaries, multiple handling, loss of quality and increase in the gap between the producer and consumer prices. There has been a lack of investment in the logistics of the retail chain, leading to a fragmented market chain,” the report points out, underlining that 'some reform' initiatives by the states have failed to attract private investment in agricultural marketing infrastructure.

On the record grain production, the report says that during 2010-11, production was 244.78 million tonne. As per the second advance estimates for 2011-12, total production is estimated at a record level of 250.42 million tonne, which is 5.64 million tonne higher than the last year's production.

Production of rice is estimated at 102.75 million tonne, wheat 88.31 million tonne, coarse cereals 42.08 million tonne and pulses 17.28 million tonne. Oilseeds production during 2011-12 is estimated at 30.53 million tonne, sugarcane 347.87 million tonne and cotton 34.09 million bales (of 170 kg each). “Despite inconsistent climatic factors in some parts of the country, there has been a record production, surpassing the targeted production of 245 million tonne of foodgrain by more than 5 million tonne during 2011-12,” the report has stated.

The Financial Express, 13 March, 2012, http://www.financialexpress.com/news/agri-report-calls-for-growth-on-a-par-with-gdp/923431/0


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