-The Economic Times
Farm sector has sought reforms in supply chain infrastructure, rationalisation of subsidies, decentralised handling of foodgrain, and higher resources to farm productivity and ensure food security.
Presenting its pre-budget wish list to the Finance Minister Pranab Mukherjee, a delegation of farmers and sector experts said there was a need to boost investment in farm sector to tackle food inflation. Farm sector growth is likely to be 3-3.5% in 11th Plan.
"With the current level of investment, 4% growth in farm sector cannot be achieved...It is very clear that we have to increase investment both from private and public sectors," said Ashok Gulati, chairman, Commission for Agricultural Costs and Prices, after a pre-budget consultation of agri economists and farmers' bodies with Mukherjee.
Public investment in agriculture is not more than Rs 30,000 crore annually, as compared to the subsidies of around Rs 2 lakh crore given on inputs like fertilisers, power, irrigation and credit, Gulati said. Mr Mukherjee told the delegation that the current year was a challenging one as far as the domestic and the global economy was concerned.
He conceded that it would be difficult to achieve the target of fiscal deficit of 4.6% for the current financial year.
The finance minster called for suggestions for enhancing agriculture productivity, about reforms to be brought in agriculture pricing, measures required to meet food security needs and dealing with malnutrition and issues relating to procurement, marketing, cold chains and maintenance of buffer stocks.
The Consortium of Indian Farmers Association suggested the finance ministry allow foreign direct investment in multi-brand retail, irrigation, farm mechanisation and research.
Farmer leader from Andhra Pradesh Y Shivaji suggested the finance ministry make the Mahatma Gandhi National Rural Employment Guarantee Act more peasant-friendly to ensure there is no labour shortage in farm sector.
Agricultural economist from IIM-Bangalore Gopal Naik, Ramesh Chand from National Centre for Agricultural Economics and Policy, an expert from National cooperative Development Corporation were among 15 others present at the meeting.
