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Farm sector will grow by 1.5 p.c., says Pawar

NEW DELHI: Despite a projected shortfall of 21 million tonnes in kharif production this year, Union Agriculture and Food Minister Sharad Pawar is confident that the agriculture sector will post a growth rate of under two per cent.

“Though we have not reached a satisfactory level in food grain production, I do not expect a growth rate [of] below two per cent. It may be 1.5 per cent, but it won’t be negative,” Mr. Pawar told the Economic Editors’ Conference here on Wednesday.

He expressed concern at the rising prices of food commodities, but did not hint at any relief for the common man in the immediate future.

At best, the situation might improve if the rabi wheat turned out to be good.

“Inflation in food articles is a matter of concern, and the government has taken steps to arrest the increase in prices. With rabi crops, we will have the situation in hand,” he said. The target of 8.5 million more tonnes of grain in the rabi season might offset the kharif losses. Grain production was 116 million tonnes in the rabi season last year. Kharif production for 2009-10 has been put at 96.63 million tonnes.

According to the government data, the wholesale prices of food articles went up by 13 per cent, year-on-year, for the week ended October 17. Pulses rose sharply by 23 per cent.

As for Fair and Remunerative Price (FRP) announced for sugar cane this year, Mr. Pawar said sugar mills would have to pay up a higher price. “The FRP is the benchmark … If the mills do not give a higher price, they won’t get sugar cane.” Market economy would dictate a higher FRP, an official said. The FRP for this season has been set at Rs.129.84 a quintal linked to a 9.5 per cent recovery.

Mr. Pawar said sugar production this year was expected to be 160 lakh tonnes; even with an opening stock of 22 lakh tonnes and an import of 40 lakh tonnes of raw sugar, the “gap between demand and supply will remain.So far three million tonnes of raw sugar and three lakh tonnes of refined sugar has been imported.

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