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Sub-committee to present major ideas on transforming agriculture sector
New Delhi, July 30, 2010
The Sub-Committee on Agriculture set up by the Prime Minister's Council on Trade and Industry today decided that it would present to Prime Minister Manmohan Singh major ideas to transform the agriculture sector along with an action plan to bring it about.
At its first meeting here today, the sub-committee decided to hold one more meeting in the third week of August to discuss and finalise its recommendations.
At today's meeting, the sub-committee reviewed the current state of the agriculture sector with the underlying objective of ensuring food security, increasing farmers’ incomes and providing agri-products at reasonable prices to the consumers.
The Sub-Committee on "Enhancing Agriculture Production and Food Security’ was formed by the Prime Minister’s Council on Trade and Industry in its first meeting on May 26, 2010. It comprises Mr Mukesh Ambani, Mr M. S. Banga, Dr. Ashok Ganguli and Mr Jamshyd Godrej. Agriculture Secretary P. K. Basu is its convener.
According to an official press release, the sub-committee reviewed areas identified by the Ministry of Agriculture for private sector investment in the agriculture sector, which are:
-Focussing on Eastern region of the country where large investment in sinking shallow wells, managing flood water and lifting water, coupled with use of advanced technology can transform the agricultural economy of this region;
-Development, production & distribution of hybrid rice seeds on competitive costs like China;
-Speeding up process of farm mechanisation and establishing farm machinery service providers;
-Oil palm cultivation and processing;
-Contract production, procurement, processing and retailing of pulses;
-Setting up terminal markets with cold chains tied up to production spokes;
-Setting up tissue culture laboratories for production of planting material in north, central and north-eastern parts of the country;
-Processing of horticulture produce for longer life, loss reduction and value addition;
-Creation of additional storage capacity of 100-150 lakh tonnes;
-Setting up integrated and automated mandis, modern storage systems, transportation and logistics systems to handle foodgrains from the production to final consumption stage.
-Reforms required in APMC laws and Essential Commodities Act and removal of restrictions placed on the movement of foodgrains and stock limits;
-E-trading coupled with warehousing to facilitate credit and storage choices to farmers;
-Setting up agriculture infrastructure of soil, nutrients, seed, bio-fertilisers, pesticides testing laboratories;
-Extension services designed and suitable for specific crops and market-industry linkage;
-Easing of land constraints to enable scale farming;
-Permitting contract farming and medium term land leasing;
-Encouraging private sector micro-finance companies to expand their operation for agriculture credit;
The release said the members agreed that agriculture and manufacturing required focussed attention, as called for by the Prime Minister. Members were also of the view that farmers took the highest risks and, therefore, agriculture policies needed to be developed and reformed in such a way that farming became an assured and remunerative business.
They felt that the entire post production management required to be tailored to eliminate post-harvest losses and provide quality products to consumers at reasonable prices. Members felt that this would require a massive reforms and development programme built around following elements:
a. Focus on identified crops and regions for the entire value chain by organising policy reforms and interventions;
b. Build strong public private partnerships in agriculture, including for turning around and using full capacity of public sector institutions and assets;
c. Making agriculture attractive for young entrepreneurs to invest in;
d. Increasing availability of agriculture financing to private sector, including providing priority sector status to such financing;
e. Recognising that there are well-entrenched lobbies, which come in the way of reforms, undertake reforms boldly for farmers and consumers interest;
f. Identifying pro-reform states and working with them to initiate and mainstream change;
g. Focus on north-eastern states to exploit their tremendous potential and also to make agriculture development inclusive;
h. Transforming agriculture in sustainable manner recognising imperatives of climate change.
NNN
