July 25, 2006

India to face 16-million-tonne grain shortage by 2020

India would face a shortage of 16 million tonnes of food grain by 2020, according to figures from the country's Ministry of Agriculture.

Annual consumption is expected to increase annually by 1.7 percent, according to estimates.

Based on current increases in wheat production for the past five years of 0.015 percent and rice production of 0.08 percent, production is unlikely to catch up with consumption.

India is expected to have a grain shortage of five to eight million tonnes by 2012 and the deficit would balloon to 16 million tonnes by 2020.

With the relevation, the department of public distribution has been asked to propose strategies for increasing agriculture production.

The department is asking for Rs 1,000 crore (US$ 213 million) in funding for the farming sector, especially in grain producing regions, according to a news report quoting Agriculture Ministry sources.

There is an urgent need to plan for increase in production of grain and measures to increase cost budgets for better farmer welfare schemes and incentives to grow food crops, the report said.

Growth in India's agricultural sector has been steadily declining from 3.2 percent in the 1980s to 1.8 percent in recent years.

The Planning Commission has suggested interventions aimed at a four percent growth in the agriculture sector in the 11th Five-Year Plan approach paper.