Shri Sharad Pawar, the Minister of Agriculture, Consumer Affairs, Food and Public Distribution has  urged the States to priortise agriculture and give it equal weightage with other sectors of economy. Addressing the 55th National Development Council meeting,  Shri Pawar also urged the States to ensure adequate input for enhancing agricultural growth and productivity, proper pricing of power and introduction of modern technology for scientific utilisation of our scarce water resources, balanced use of fertilizers, seed replacement programmes and support to use of bio-technology which has tremendous promise for raising agricultural productivity.

On Government’s efforts to put agriculture on a higher growth path, Shri Pawar pointed out,” Public sector investment, which was only around Rs. 9000 crore in 2002-03 forming 15.7% of total gross capital formation in agriculture, has risen to over Rs. 24000 crore in 2008-09 amounting to 28.3% of gross capital formation. Outlay of agriculture and allied sector, which was only Rs. 26,108 crore during Tenth Plan, has been raised to Rs. 87,339crore during Eleventh Plan.”

About the agriculutre growth rate, the Minister said, ” The first three years of the plan has been a mixed story with agricultural growth rate varying from 4.7% to 0.2%. Our combined endeavour must be to have a sustained growth in this sector to ensure rural development and prosperity.” He expressed hope that the growth rate would be substantially higher than 4% this year, given the satisfactory progress of monsoon andprogrammes taken up by the Government.

Here is the text of Shri Pawar’s speech:

Prime Minister, my Cabinet colleagues, Chief Ministers, Deputy Chairman, Planning Commission and other dignitaries and officials present. At the very outset let me compliment the Planning Commission for bringing out a well-researched and insightful Mid Term Appraisal (MTA) document which affords highly valuable insights into the working, achievements, challenges, strengths and weaknesses of the important sectors at the mid-way point of the 11th Five Year Plan.

2. Members of NDC are aware that our country has been aiming at achieving an annual average growth of 4% in agriculture and allied sector since Ninth Plan. The first three years of the plan has been a mixed story with agricultural growth rate varying from 4.7% to 0.2%. Our combined endeavour must be to have a sustained growth in this sector to ensure rural development and prosperity.

3. Government has been making considerable efforts to put agriculture on a higher growth path. Public sector investment, which was only around Rs. 9000 crore in 2002-03 forming 15.7% of total gross capital formation in agriculture, has risen to over Rs. 24000 crore in 2008-09 amounting to 28.3% of gross capital formation. Outlay of agriculture and allied sector, which was only Rs. 26,108 crore during Tenth Plan, has been raised to Rs. 87,339crore during Eleventh Plan.

4. Besides this schemes like RKVY, NFSM, National Horticulture Mission and others have been introduced, the benefits of which have started percolating down to our farmers. Government has provided price incentives to farmers by raising minimum support prices significantly during last five years.

5. Results of all these efforts are reflected in the comprehensive analysis of performance of agriculture and allied sector since 1981-82 brought out by Planning Commission in MTA. I would like to highlight some of these:

a. Average growth during 2005-10 was significantly higher for most sub-sectors than 2000-2005.

b. Growth performance during five year period of 2005-10 has been found to match with the best five yearly growth performance in any five year period.

c. Overall growth during 2005-10 compared to 2000-05 has nearly doubled.

d. Share of high value agriculture has gradually increased and today it accounts for more than half the value of agriculture.

6. MTA has rightly concluded that the change in governance and implementation system of major initiatives like RKVY, NFSM, etc has lent to flexibility in choice and effectiveness in implementation of these schemes. We are undertaking an exercise to bring about further consolidation of development schemes in the agriculture and allied sector to make them more sharply focussed on the desired outcomes.

7. I would like to take this opportunity to apprise you of several recent initiatives which will benefit the agriculture sector greatly. Nutrient based subsidy for balanced use of fertiliser, an accelerated pulses production programme for yield improvement of pulses, programmefor extending green revolution to the eastern states, organising 60,000 pulse villages in the rain fed areas, popularisation of hybrid rice, national mission on micro irrigation and modified national agriculture Insurance scheme are a few such initiatives.

8. While we rejoice our successes, it is imperative for us to understand and internalise the major reforms issues facing Indian agriculture.

Besides population which impacts directly impacts agriculture, the development deficit in Indian agriculture can be best understood in terms of (i) the investment and credit deficit; (ii) the infrastructure deficit; (iii) the market accessibility deficit; and (iv) the technology, knowledge and research deficit. The issues are known to all of you so I will not elaborate on them but I must say that we must strive towards bridging these deficits if our agriculture sector is to deliver on the promised 4% growth rate.

9. Performance of agriculture sector depends on multiple factors, each crucial in its own respect. I would urge the States to:

a. Prioritise agriculture and give it equal if not more weightage than industrial and services sector.

b.Ensure adequate input for enhancing agricultural growth and productivity. Reforms in the power sector by undertaking separation of agriculture feeders in rural areas and providing power supply to farmers for fixed and predictable times using these dedicated feeders. Proper pricing of power and introduction of modern technology is a must for scientificutilisation of our scarce water resources. This will also help in bringing down the T&D losses which are quite substantial.

c. Promote balanced fertiliser use by encouraging use of micro nutrients.

d. Initiate seed replacement programme on a large scale. Public Private Partnership in production of good quality seeds must be encouraged.

e. Encourage scientific water management and use. Watershed management, popularising

of drip irrigation, revival of traditional water harvesting systems and adoption of scientific cultivation practices will go a long way in increasing production and productivity with limited water resources.

f. Invest in maintenance of canals, desilting of storage dams and undertaking plantation in the catchment of water bodies to arrest soil erosion.

g. Check the over drawal of sub soil water. Time has come for us to realize that we must suitably modify our agricultural practices to available water and not vice versa.

h. Use the reported shortage of agriculture labour in many parts of the country as an opportunity for large scale and faster mechanisation of farming operations which will not only reduce cost of cultivation but bring in much needed efficiency as well.

i. Support use of Bio-technology which has tremendous promise for raising agriculture productivity. With stringent regulatory control mechanism, we should be open to adopting bio-technological improvements in our crops.

10. It is most gratifying that investment in the infrastructure sector like electricity, roads, irrigation etc. in the country is higher than projected in the Eleventh Plan. This will have a multiplier effect on the economy as a whole. Private sector investment is also poised to exceed targeted levels in the Plan period. The PPP model seems to be

working well in many sectors of the economy.

11. MTA sets out a good course correction for Eleventh Plan and also builds in foundation for the Twelfth Plan. I am in broad agreement with the analysis made and conclusions drawn in MTA. Approval of the document by the National Development Council will pave the way for adopting some of the policy prescriptions and mid-course corrections suggested in the Mid Term Appraisal. I therefore commend the MTA for adoption byNDC.

12. I would conclude by saying that agriculture and allied sector will need to grow at 7% per annum in the remaining two years of Eleventh Plan to achieve planned growth rate of 4%. While this may not be realistic, I do expect growth rate to be substantially higher than 4% this year, given the satisfactory progress of monsoon and programmes taken up by the Government. I also share the conclusion of MTA that growth of agriculture & allied sector during Eleventh Plan would definitely exceed 3% and might cross 3.5%. For achieving all this your initiative and resolve is a must and I am confident that the State Governments will join hands with the Centre to ensure that the deficits in Indian agriculture, about which I have talked of earlier is bridged at the earliest and the underlying theme of inclusive growth envisaged in the 11th Plan is truly realised.