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LATEST NEWS UPDATES | Agri survey bats for pvt participation

Agri survey bats for pvt participation

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published Published on Mar 14, 2012   modified Modified on Mar 14, 2012
-The Business Standard

The first agriculture survey, tabled in Parliament on Monday, called for more private participation to boost farm sector investments, rather than heavy doses of subsidies.

“There is always a trade-off between allocating money through subsidies or by increasing investments. The investment option is much better than subsidies for sustaining long-term growth in agricultural production and also to reduce poverty faster,” said the survey, State of Indian Agriculture 2011-2012. It was tabled by agriculture minister Sharad Pawar.

“The private sector responds much better and faster to incentive structures in farming because of which almost 80 per cent of the total investment in agriculture comes from the private sector,” it noted. The survey also called for improving marketing infrastructure in eastern India in view of surplus production in several states. “For areas where the private sector has not shown much interest, the role of public research system would continue to be critical,” the report said.
 
The government’s report card on the farm sector, which will be an annual affair henceforth, noted the need for major reforms in marketing and investment, along with new technologies, to improve the share of agriculture in the country’s GDP. It has halved to around 15 per cent in the last two decades. “Achieving an 8-9 per cent rate of growth in overall gross domestic produce (GDP) may not deliver much in terms of poverty reduction unless agricultural growth accelerates,” the survey noted.

Agriculture has to be kept at the centre of any reform agenda or planning process to alleviate poverty and malnutrition, and to ensure food security, the report said. Stating that price rise has become a major concern, it said the solution lies in increasing productivity, production and in decreasing market imperfections.

“In India, the recent food inflation is largely due to inadequate supply response to demand increase, aggravated by logistic and market related constrains. Inflation affects the poor disproportionately and adversely impacts achievement of removal of poverty.”

The pre-Budget document also called for introduction of VAT on farm produce in place of varied state taxes, besides stressing on creation of vibrant land lease and credit market.

The report projected that the average farm growth in the XII Five-Year Plan (2007-2012) is expected to be higher at 3.4 per cent per against a target of 4 per cent. In the X Five-Year Plan (2002-2007), agricultural growth stood at 2.4 per cent.


The Business Standard, 13 March, 2012, http://business-standard.com/india/news/agri-survey-bats-for-pvt-participation/467577/


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