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You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
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LATEST NEWS UPDATES | Sustaining farm growth is possible; Investment, price assurance to yield results by Ramesh Chand </title>
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India has been striving to achieve 4% growth rate in farm output since the beginning of Ninth Five-Year Plan. However, actual growth rate has remained invariably lower than the targeted growth rate. Further, agriculture witnessed a sharp slowdown during mid-1990s..."/>
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India has been striving to achieve 4% growth rate in farm output since the beginning of Ninth Five-Year Plan. However, actual growth rate has remained invariably lower than the targeted growth rate. Further, agriculture witnessed a sharp slowdown during mid-1990s..." />
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<h1 class="cat-box-title">Sustaining farm growth is possible; Investment, price assurance to yield results by Ramesh Chand</h1>
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Published on</span><span class="text-date"> Feb 9, 2012</span>
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<div style="text-align: justify"><br /></div><div style="text-align: justify">India has been striving to achieve 4% growth rate in farm output since the beginning of Ninth Five-Year Plan. However, actual growth rate has remained invariably lower than the targeted growth rate. Further, agriculture witnessed a sharp slowdown during mid-1990s to the middle of the first decade of 21st century. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Annual growth rate in farm GDP declined to 2.4% a year during 1995-96 to 2004-05 from more than 3% in the previous decade. Agriculture growth showed sharp acceleration beginning 2005-06. Increase in agriculture output during 2010-11 was more than what was expected. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">The Eleventh Five-Year Plan is likely to end with around 3.2% agriculture growth, which is a significant and sizeable increase over the growth rate achieved during the 9th and 10th Plans. Also, this growth rate is much higher than the long-run growth rate of agriculture, which has been 2.8%. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">What led to the recovery in growth rate of agriculture sector after 2004-05? Can this growth rate be sustained over the next 5-10 years? And what are the prospects of achieving 4% growth in agriculture. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Interestingly, most of the factors that resulted in a decade of slowdown are same that put agriculture back on the trajectory of 3.2% growth rate. These include consumption of inputs such as fertilisers and quality seeds, power supply to agriculture sector, private and public investments, technology and prices. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Compare the growth rate of these factors in the two periods representing slowdown (1995-96 to 2004-05) and recovery (2004-05 to 2010-11). The foremost among them is prices of agriculture relative to non-agriculture sector that in some way represent terms of trade for the sector. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Implicit price indices of GDP agriculture relative to non-agriculture (with base 1999-2000) declined from around 100 during 1997-98 to 1999-2000 to 91.9 during 2004-05, amounting to a 9% decline in agriculture prices relative to non-agriculture prices. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">In contrast to the decade of slowdown, the implicit index of agriculture prices relative to non-agriculture prices increased to 129 by 2010-11. Because of higher increase in agriculture prices, the share of agriculture in total GDP during 2010-11 was 30% higher than the share at constant prices. The respective shares stood at 14.3% and 18.9%. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Similarly, agriculture share in GDP at current prices during 2010-11 was higher than what it was during 2004-05 despite less than half the growth rate of total economy. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">About 36% of growth in agriculture after 2004-05 is attributable to increase in prices. It is a matter of serious concern that prices are driving growth of agriculture. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Among other factors, related to growth of agriculture sector, public investment that was stagnant between 1.5% and 2.5% of GDP during the 10 years before 2004-05 rose to more than 3% of GDP in all years after 2004-05. A fraction of GDP spent on private investment also increased by more than 50% between the two periods. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Growth rate in fertiliser doubled and supply of quality seeds rose five times faster after 2004-05 compared to the previous decade. Area under irrigation in the second period increased by more than 2% a year compared to less than 1% growth during the period of slow agriculture growth. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Future agriculture growth will be determined mainly by the pace of growth in real prices of agriculture, fertiliser use, irrigation, public and private investments, supply of quality seeds and progress in agriculture technology. Of these, increase in agriculture prices is a matter of concern. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">However, indications are that agriculture prices (in real terms) may not rise to same extent as seen during 2004-05 to 2010-11, but are likely to increase at a faster rate than other pri ces. This rise will contribute positively to growth. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">The current level of productivity in many states is quite low compared to their potential. The level of fertiliser use is also low. Seed replacement rate is awfully inadequate and increase in the use of quality seed that is a carrier of improved technology offers tremendous scope for increase in productivity. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Both the public and private sectors are promoting hybrids that are showing a significant increase in productivity. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">If public support in the form of investments and institutional credit is maintained and price assurance improves a bit and private investment is maintained at current level, it is not difficult to sustain around 3% average growth in agriculture in the coming decade. The real worry relates to long-run growth, i.e., beyond 2020. </div>
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<br><a href="http://economictimes.indiatimes.com/news/economy/agriculture/sustaining-farm-growth-is-possible-investment-price-assurance-to-yield-results/articleshow/11816908.c" class="re" target="_blank">The Economic Times, 9 February, 2012, http://economictimes.indiatimes.com/news/economy/agriculture/sustaining-farm-growth-is-possible-investment-price-assurance-to-yield-results/articleshow/11816908.c</a><div class="clear"></div>
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LATEST NEWS UPDATES | Sustaining farm growth is possible; Investment, price assurance to yield results by Ramesh Chand </title>
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India has been striving to achieve 4% growth rate in farm output since the beginning of Ninth Five-Year Plan. However, actual growth rate has remained invariably lower than the targeted growth rate. Further, agriculture witnessed a sharp slowdown during mid-1990s..."/>
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<h1 class="cat-box-title">Sustaining farm growth is possible; Investment, price assurance to yield results by Ramesh Chand</h1>
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Published on</span><span class="text-date"> Feb 9, 2012</span>
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<div style="text-align: justify"><br /></div><div style="text-align: justify">India has been striving to achieve 4% growth rate in farm output since the beginning of Ninth Five-Year Plan. However, actual growth rate has remained invariably lower than the targeted growth rate. Further, agriculture witnessed a sharp slowdown during mid-1990s to the middle of the first decade of 21st century. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Annual growth rate in farm GDP declined to 2.4% a year during 1995-96 to 2004-05 from more than 3% in the previous decade. Agriculture growth showed sharp acceleration beginning 2005-06. Increase in agriculture output during 2010-11 was more than what was expected. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">The Eleventh Five-Year Plan is likely to end with around 3.2% agriculture growth, which is a significant and sizeable increase over the growth rate achieved during the 9th and 10th Plans. Also, this growth rate is much higher than the long-run growth rate of agriculture, which has been 2.8%. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">What led to the recovery in growth rate of agriculture sector after 2004-05? Can this growth rate be sustained over the next 5-10 years? And what are the prospects of achieving 4% growth in agriculture. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Interestingly, most of the factors that resulted in a decade of slowdown are same that put agriculture back on the trajectory of 3.2% growth rate. These include consumption of inputs such as fertilisers and quality seeds, power supply to agriculture sector, private and public investments, technology and prices. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Compare the growth rate of these factors in the two periods representing slowdown (1995-96 to 2004-05) and recovery (2004-05 to 2010-11). The foremost among them is prices of agriculture relative to non-agriculture sector that in some way represent terms of trade for the sector. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Implicit price indices of GDP agriculture relative to non-agriculture (with base 1999-2000) declined from around 100 during 1997-98 to 1999-2000 to 91.9 during 2004-05, amounting to a 9% decline in agriculture prices relative to non-agriculture prices. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">In contrast to the decade of slowdown, the implicit index of agriculture prices relative to non-agriculture prices increased to 129 by 2010-11. Because of higher increase in agriculture prices, the share of agriculture in total GDP during 2010-11 was 30% higher than the share at constant prices. The respective shares stood at 14.3% and 18.9%. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Similarly, agriculture share in GDP at current prices during 2010-11 was higher than what it was during 2004-05 despite less than half the growth rate of total economy. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">About 36% of growth in agriculture after 2004-05 is attributable to increase in prices. It is a matter of serious concern that prices are driving growth of agriculture. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Among other factors, related to growth of agriculture sector, public investment that was stagnant between 1.5% and 2.5% of GDP during the 10 years before 2004-05 rose to more than 3% of GDP in all years after 2004-05. A fraction of GDP spent on private investment also increased by more than 50% between the two periods. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Growth rate in fertiliser doubled and supply of quality seeds rose five times faster after 2004-05 compared to the previous decade. Area under irrigation in the second period increased by more than 2% a year compared to less than 1% growth during the period of slow agriculture growth. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Future agriculture growth will be determined mainly by the pace of growth in real prices of agriculture, fertiliser use, irrigation, public and private investments, supply of quality seeds and progress in agriculture technology. Of these, increase in agriculture prices is a matter of concern. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">However, indications are that agriculture prices (in real terms) may not rise to same extent as seen during 2004-05 to 2010-11, but are likely to increase at a faster rate than other pri ces. This rise will contribute positively to growth. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">The current level of productivity in many states is quite low compared to their potential. The level of fertiliser use is also low. Seed replacement rate is awfully inadequate and increase in the use of quality seed that is a carrier of improved technology offers tremendous scope for increase in productivity. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Both the public and private sectors are promoting hybrids that are showing a significant increase in productivity. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">If public support in the form of investments and institutional credit is maintained and price assurance improves a bit and private investment is maintained at current level, it is not difficult to sustain around 3% average growth in agriculture in the coming decade. The real worry relates to long-run growth, i.e., beyond 2020. </div>
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<br><a href="http://economictimes.indiatimes.com/news/economy/agriculture/sustaining-farm-growth-is-possible-investment-price-assurance-to-yield-results/articleshow/11816908.c" class="re" target="_blank">The Economic Times, 9 February, 2012, http://economictimes.indiatimes.com/news/economy/agriculture/sustaining-farm-growth-is-possible-investment-price-assurance-to-yield-results/articleshow/11816908.c</a><div class="clear"></div>
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<h1 class="cat-box-title">Sustaining farm growth is possible; Investment, price assurance to yield results by Ramesh Chand</h1>
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Published on</span><span class="text-date"> Feb 9, 2012</span>
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<div style="text-align: justify"><br /></div><div style="text-align: justify">India has been striving to achieve 4% growth rate in farm output since the beginning of Ninth Five-Year Plan. However, actual growth rate has remained invariably lower than the targeted growth rate. Further, agriculture witnessed a sharp slowdown during mid-1990s to the middle of the first decade of 21st century. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Annual growth rate in farm GDP declined to 2.4% a year during 1995-96 to 2004-05 from more than 3% in the previous decade. Agriculture growth showed sharp acceleration beginning 2005-06. Increase in agriculture output during 2010-11 was more than what was expected. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">The Eleventh Five-Year Plan is likely to end with around 3.2% agriculture growth, which is a significant and sizeable increase over the growth rate achieved during the 9th and 10th Plans. Also, this growth rate is much higher than the long-run growth rate of agriculture, which has been 2.8%. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">What led to the recovery in growth rate of agriculture sector after 2004-05? Can this growth rate be sustained over the next 5-10 years? And what are the prospects of achieving 4% growth in agriculture. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Interestingly, most of the factors that resulted in a decade of slowdown are same that put agriculture back on the trajectory of 3.2% growth rate. These include consumption of inputs such as fertilisers and quality seeds, power supply to agriculture sector, private and public investments, technology and prices. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Compare the growth rate of these factors in the two periods representing slowdown (1995-96 to 2004-05) and recovery (2004-05 to 2010-11). The foremost among them is prices of agriculture relative to non-agriculture sector that in some way represent terms of trade for the sector. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Implicit price indices of GDP agriculture relative to non-agriculture (with base 1999-2000) declined from around 100 during 1997-98 to 1999-2000 to 91.9 during 2004-05, amounting to a 9% decline in agriculture prices relative to non-agriculture prices. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">In contrast to the decade of slowdown, the implicit index of agriculture prices relative to non-agriculture prices increased to 129 by 2010-11. Because of higher increase in agriculture prices, the share of agriculture in total GDP during 2010-11 was 30% higher than the share at constant prices. The respective shares stood at 14.3% and 18.9%. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Similarly, agriculture share in GDP at current prices during 2010-11 was higher than what it was during 2004-05 despite less than half the growth rate of total economy. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">About 36% of growth in agriculture after 2004-05 is attributable to increase in prices. It is a matter of serious concern that prices are driving growth of agriculture. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Among other factors, related to growth of agriculture sector, public investment that was stagnant between 1.5% and 2.5% of GDP during the 10 years before 2004-05 rose to more than 3% of GDP in all years after 2004-05. A fraction of GDP spent on private investment also increased by more than 50% between the two periods. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Growth rate in fertiliser doubled and supply of quality seeds rose five times faster after 2004-05 compared to the previous decade. Area under irrigation in the second period increased by more than 2% a year compared to less than 1% growth during the period of slow agriculture growth. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Future agriculture growth will be determined mainly by the pace of growth in real prices of agriculture, fertiliser use, irrigation, public and private investments, supply of quality seeds and progress in agriculture technology. Of these, increase in agriculture prices is a matter of concern. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">However, indications are that agriculture prices (in real terms) may not rise to same extent as seen during 2004-05 to 2010-11, but are likely to increase at a faster rate than other pri ces. This rise will contribute positively to growth. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">The current level of productivity in many states is quite low compared to their potential. The level of fertiliser use is also low. Seed replacement rate is awfully inadequate and increase in the use of quality seed that is a carrier of improved technology offers tremendous scope for increase in productivity. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">Both the public and private sectors are promoting hybrids that are showing a significant increase in productivity. </div><div style="text-align: justify"><br /></div><div style="text-align: justify">If public support in the form of investments and institutional credit is maintained and price assurance improves a bit and private investment is maintained at current level, it is not difficult to sustain around 3% average growth in agriculture in the coming decade. The real worry relates to long-run growth, i.e., beyond 2020. </div>
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<br><a href="http://economictimes.indiatimes.com/news/economy/agriculture/sustaining-farm-growth-is-possible-investment-price-assurance-to-yield-results/articleshow/11816908.c" class="re" target="_blank">The Economic Times, 9 February, 2012, http://economictimes.indiatimes.com/news/economy/agriculture/sustaining-farm-growth-is-possible-investment-price-assurance-to-yield-results/articleshow/11816908.c</a><div class="clear"></div>
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LATEST NEWS UPDATES | Sustaining farm growth is possible; Investment, price assurance to yield results by Ramesh Chand
Sustaining farm growth is possible; Investment, price assurance to yield results by Ramesh Chand
Published on Feb 9, 2012
Modified on Feb 9, 2012
India has been striving to achieve 4% growth rate in farm output since the beginning of Ninth Five-Year Plan. However, actual growth rate has remained invariably lower than the targeted growth rate. Further, agriculture witnessed a sharp slowdown during mid-1990s to the middle of the first decade of 21st century.
Annual growth rate in farm GDP declined to 2.4% a year during 1995-96 to 2004-05 from more than 3% in the previous decade. Agriculture growth showed sharp acceleration beginning 2005-06. Increase in agriculture output during 2010-11 was more than what was expected.
The Eleventh Five-Year Plan is likely to end with around 3.2% agriculture growth, which is a significant and sizeable increase over the growth rate achieved during the 9th and 10th Plans. Also, this growth rate is much higher than the long-run growth rate of agriculture, which has been 2.8%.
What led to the recovery in growth rate of agriculture sector after 2004-05? Can this growth rate be sustained over the next 5-10 years? And what are the prospects of achieving 4% growth in agriculture.
Interestingly, most of the factors that resulted in a decade of slowdown are same that put agriculture back on the trajectory of 3.2% growth rate. These include consumption of inputs such as fertilisers and quality seeds, power supply to agriculture sector, private and public investments, technology and prices.
Compare the growth rate of these factors in the two periods representing slowdown (1995-96 to 2004-05) and recovery (2004-05 to 2010-11). The foremost among them is prices of agriculture relative to non-agriculture sector that in some way represent terms of trade for the sector.
Implicit price indices of GDP agriculture relative to non-agriculture (with base 1999-2000) declined from around 100 during 1997-98 to 1999-2000 to 91.9 during 2004-05, amounting to a 9% decline in agriculture prices relative to non-agriculture prices.
In contrast to the decade of slowdown, the implicit index of agriculture prices relative to non-agriculture prices increased to 129 by 2010-11. Because of higher increase in agriculture prices, the share of agriculture in total GDP during 2010-11 was 30% higher than the share at constant prices. The respective shares stood at 14.3% and 18.9%.
Similarly, agriculture share in GDP at current prices during 2010-11 was higher than what it was during 2004-05 despite less than half the growth rate of total economy.
About 36% of growth in agriculture after 2004-05 is attributable to increase in prices. It is a matter of serious concern that prices are driving growth of agriculture.
Among other factors, related to growth of agriculture sector, public investment that was stagnant between 1.5% and 2.5% of GDP during the 10 years before 2004-05 rose to more than 3% of GDP in all years after 2004-05. A fraction of GDP spent on private investment also increased by more than 50% between the two periods.
Growth rate in fertiliser doubled and supply of quality seeds rose five times faster after 2004-05 compared to the previous decade. Area under irrigation in the second period increased by more than 2% a year compared to less than 1% growth during the period of slow agriculture growth.
Future agriculture growth will be determined mainly by the pace of growth in real prices of agriculture, fertiliser use, irrigation, public and private investments, supply of quality seeds and progress in agriculture technology. Of these, increase in agriculture prices is a matter of concern.
However, indications are that agriculture prices (in real terms) may not rise to same extent as seen during 2004-05 to 2010-11, but are likely to increase at a faster rate than other pri ces. This rise will contribute positively to growth.
The current level of productivity in many states is quite low compared to their potential. The level of fertiliser use is also low. Seed replacement rate is awfully inadequate and increase in the use of quality seed that is a carrier of improved technology offers tremendous scope for increase in productivity.
Both the public and private sectors are promoting hybrids that are showing a significant increase in productivity.
If public support in the form of investments and institutional credit is maintained and price assurance improves a bit and private investment is maintained at current level, it is not difficult to sustain around 3% average growth in agriculture in the coming decade. The real worry relates to long-run growth, i.e., beyond 2020.
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