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Manmohan Singh: tough decisions needed to rejuvenate agriculture

Gargi Parsai

Rs. 25,000-crore scheme to incentivise States to invest more in farm sector


  • Call to enhance production of wheat, rice, pulses
  • NDC for State-specific strategy to revamp sector

    NEW DELHI: The 53rd meeting of the National Development Council (NDC) on Tuesday agreed on a strategy to rejuvenate the agriculture sector, which Prime Minister Manmohan Singh said was suffering from a "technology fatigue" for lack of breakthrough in production.

    Dr. Singh, who chaired the daylong meeting here attended a majority of the Chief Ministers, said farming was increasingly becoming unviable because of the nature of landholdings. "Small and marginal farming has become an unviable proposition and till we make farming viable, it would be impossible to reduce rural poverty and distress."

    Four per cent growth

    To achieve a four per cent annual growth in the farm sector during the 11th Plan, the NDC adopted a resolution that announced a Rs. 25,000-crore Additional Central Assistance Scheme over four years to "incentivise" States to invest more in agriculture.

    The resolution called for a National Food Security Mission to enhance the production of wheat, rice and pulses. It said the Centre would provide more funds for the Accelerated Irrigation Benefit Programme (AIBP), farm research, restructuring fertilizer subsidy and the pattern of the Rural Infrastructure Development Fund and for skill development. The States would formulate State agriculture plans, district plans for agriculture and irrigation, complete AIBP projects, prioritise seed production, revamp extension systems, implement the Vaidyanathan panel recommendations on cooperative credit structure, and notify rules under the Agriculture Produce Marketing Committee Act.

    Expressing satisfaction with a "broad agreement" on the States-specific approach, Dr. Singh said achieving four per cent annual growth in the sector would be feasible "if only we are willing to take tough decisions and take concrete action."

    Endorsing the recommendation of the NDC Sub-Committee on Agriculture, headed by Agriculture Minister Sharad Pawar, Dr. Singh said that at the core of any agricultural revamp strategy was the States making their own plans based on local needs and capabilities.

    The strategies should focus on reducing the gaps between actual yields and technologically feasible yields.

    Water sharing

    On the problem of inter-State water sharing, highlighted by Tamil Nadu Chief Minister M. Karunanidhi and Haryana Agriculture Minister Virendar, Dr. Singh said the Centre would look at the woes of water-deficit States and the possibility of transferring water from surplus to deficit areas. He urged the States to come up with improved models of input subsidy delivery. While Kerala, West Bengal, Assam and Tripura opposed contract farming, Punjab and Haryana wanted the minimum support price for farm commodities linked to the price index.

    Almost all States sought research that addressed the impact of climate change on crops, particularly wheat.

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