The Hindu : Business : Agriculture, corporate sector partnership sought

Online edition of India's National Newspaper
Sunday, Jul 04, 2004

Business

Business

Agriculture, corporate sector partnership sought

By Gargi Parsai

NEW DELHI, JULY 3. The Ministry of Agriculture is seeking partnership with the corporate sector for promoting public-private partnership in extension services and marketing.

On the eve of the general budget, the Secretary, Agriculture, Radha Singh, has held three rounds of meetings with the corporate sector for this. The Ministry has sought synergy in terms of increasing productivity per hectare, value addition, better quality of produce, marketing and exports.

It has also sought investment support in infrastructure development, storage capacity, hi precision technologies, grading and selection of fair average quality of produce. With the view that "the government could not be everywhere," the government has asked the corporate sector for tie-ups in quality inputs such as seeds, water and fertilisers. It has also asked the corporates to adopt villages for a concerted improvement in the quality of farm yield.

On their part, the corporate sector sought lesser controls, removal of bottlenecks and a virtually free market situation. They wanted the Agriculture Produce Marketing Act to be amended, more relaxations under the Essential Commodities Act and Food Laws. They wanted State governments to conform to removal of controls and provide free movements of agriculture, horticulture and dairy produce.

It is felt that while agriculture sector has been able to produce more than requirement despite having faced several upheavals in the recent past because of successive drought in some States, yet some steps have been missed in having a well-orchestrated strategy for value addition, quality and marketing. A general extension machinery on these aspects was lacking.

Recently, the Central Government amended the APMC Act, which regiments the mandis to allow legal space for private players to buy directly from farmers. The Contract Farming Act also is being reviewed to safeguard the interests of farmers and have a quick redressal mechanism.

The corporate leaders were also informed about a Pledging and Storage facility scheme that is being introduced wherein banks would advance 75 per cent loans to farmers against receipt from an accredited warehouse his produce was stored. This would help eliminate the middlemen and increase a farmer's storage capacity.

To protect farmers from the vagaries of the weather, the National Agriculture Insurance Scheme and the Farm Income Insurance Schemes were being improved, industry representatives were informed.

Among those who participated in the meetings were ITC, Mahindra and Mahindra, Escorts, United Phosphorous, DCM Sriram, D.S. Group, Godrej Agrivet, Tata Tea, Cargill India, Hindustan Lever, Al-Kabeer Exports, Indagro Foods, Hind Agro Industries, Suguna Poultry, Nestle India, MPEDA, crop Care Federation, Fertilisers Association of India, Appachi Cotton, Indian Cotton Mills Federation, Indian Seed Industry Association, East India Cotton Association and Crop Life.

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