July 26, 2010

 

India sees 3-3.5% growth in agri sector

 

 

The agricultural sector in India is expected to grow by 3-3.5% annually during the 11th Five-Year Plan ending 2011-12, lower than the target of 4%, according to the Planning Commission.

 

"The rate of growth in agriculture in the 11th Plan is likely to be better than in the 10th Plan. However, it may not reach the target of 4% per year and instead range between 3-3.5% per year," according to a Commission's note for discussion in the National Development Council meeting on July 24.

 

The Plan Panel, however, noted that agriculture production in 2010-11 would be better compared to last year, when the crop was severely hit by the worst drought in 32 years.

 

The agriculture sector, which contributes 17% to GDP and employs 60% of the population, grew by 0.2% in 2009-10 fiscal. In the first three years of the current plan period, the average growth was 2.2%.

 

The Planning Commission emphasised on undertaking steps to increase production so that the 4% growth target is at least achieved in the 12th Plan period.

 

"Food Security will continue to be an important concern and we need to plan for growth in grain production of around 2-2.5 % per year," the note said. The allied sectors (including dairy and fisheries) will have to grow at 6-7%, it added.

 

Highlighting important steps taken in the last few years, Plan Panel said that greater efforts were needed to achieve the targeted growth.

 

The Commission noted that bio-technology holds great potential for expanding agri-productivity, but it also raises concerns about safety in connection with the introduction of GM technology in foods.

 

The panel suggested that it was essential to establish a regulatory system that will ensure that safety is not compromised. "The central government should expedite the establishment of statutory Bio-technology Regulatory Board, with appropriate scientific expertise as quickly as possible," the note said.

 

The panel asked states to pay more attention to agriculture development by strengthening research, extension system, state agri-universities and encouraging private sector in seed development.

 

Describing extension service as the "weakest link", the panel said states should strengthen the extension system.

 

"It is not an exaggeration to say that the extension service has collapsed in most states with large unfilled vacancies and also poor accountability of personnel where they exist," the note said.