Despite agriculture and allied activities accounting for only 14.1 per cent of the GDP in 2011-12, the Economic Survey recognises the sector’s role in the country’s economy as ‘much bigger’ with its share in total employment being as high as 58.2 per cent.
Fast agriculture growth and reforms in the sector remain vital for jobs, income and food security, the Survey notes, while reinforcing the need for setting the growth target at 4 per cent. In the last five years, the growth rate achieved has been an average of 3.6 per cent, which remained short of the target of 4 per cent.
“While it may appear that the performance of the agriculture and allied sector has fallen short of the target, production has improved remarkably, growing twice as fast as the population,’’ the Survey notes.
Foodgrains production was at a record high of 259.32 million tonnes in 2011-12 at a time when there were food shortages in many parts of the world and steep hikes in food prices.
“Indian agriculture performed well primarily due to time policy interventions,’’ the Survey notes adding that there was a need for improvements in yields to achieve self-sufficiency in food as well as have enough surplus to make a place in international market. Another challenge is how to maximise agriculture income while adopting a more sustainable strategy as well as adopt better management practices for rehabilitation of degraded lands and water resources.
Keywords: Economic Survey, Agriculture, Economic reforms, Growth issues
Only targeting on subsidies to agriculture without commensurate freedom to the farmer to price his produce on cost-plus basis will create more suicides of the farmers as his sandwiched between a fixed price administered by government and increased cost of inputs caused by reduced subsidies as being proposed by the survey. Actually it is a misnomer to call it 'subsidy' when given to agriculture, while you give the same to the corporate sector in the name of 'sops' or 'incentives' for boosting investments to industrial enterprises. So long as urban-educated politicians like PC and MMS or econocrats like Montek and Raghu Rajan decide the economic policies without any concern for the rural farmers, in future no body would venture out to be a farmer to produce food.
I hope somebody in the Govt listens to this survey and acts on it.
After watching closely the Cauvery dispute between Karnataka and TN this year, I think the following steps need to be taken - 1. Announce water as a national resource, so that water is distributed fairly for farmers and for drinking purposes. We should raise beyond the state welfare and strive for the nation's betterment. 2. Take firm steps against encroaching the agricultural lands for industrial and residential purposes. We can even limit individual family purchases of houses / flats. 3. Encourage big corporates like Tata to get into large scale agriculture with Organic base. 4. Do R&D for short term crops which need less water - I have been reading sporadic reports on this. 5. Encourage youngsters to get into agricultural studies. I sincerely hope that the Government can do all this , if there is a will. In the attempt for high produce, let them not encourage fertilizers / pesticides that result in cancer
Please Email the Editor