IndiaPost.com - PM announces Rs 25,000 cr plan for boosting agri sector

NEW DELHI: Prime Minister Manmohan Singh has announced a Rs 25,000 crore plan for boosting farm sector growth by addressing the needs at the grass-root level during the next four years. "The Centre will commit funds if states maintain their baseline levels of expenditure.

This will ensure greater public investment in agriculture," he said in his concluding remarks at the 53rd meeting of the National Development Council (NDC). He said the Centre will commit over Rs 25,000 crore in the coming four years and that the Planning Commission and the Agriculture Ministry will finalise details of this program in the next two months.

The plan seeks to encourage states to come up with localised solutions for problems faced by the agri-sector. Besides, a Food Security Mission would be announced to raise the production of wheat, rice and pulses and reduce the country's dependence on imports of basic commodities, he said. Earlier, the NDC adopted a resolution to raise wheat production by eight million tons, rice by ten MT and pulses by two MT over the next four years.

He said the four per cent target growth of agriculture and allied activities was achievable "if we are willing to take tough decisions and follow it up with actions". Singh also asked Finance Minister P Chidambaram to ensure all eligible farmers are covered under institutional credit mechanism in the next four years.

Commenting on food security, the Prime Minister said a mission would be launched in the coming months which would reduce country's dependence on imports of basic commodities such as rice and wheat. Addressing the assembled chief ministers, the Prime Minister referred to slowdown of agriculture sector due to "technology fatigue," and assured them that the Centre was willing to support their plans for enhancing productivity in the segment.

Stating that small and marginal farming had become an unviable proposition, the Prime Minister told the 53rd meeting of the National Development Council (NDC) that until farming was made viable at this scale, it would be virtually "impossible" to reduce rural poverty and distress. He said the public and private investment in agriculture sector should be seen in the context of a larger trend whereby subsidies have been increasing and investments declining.

"One feature that stands out is the lack of any breakthroughs in agricultural production technology in recent years. There is a technology fatigue which we need to address," he said. The Prime Minister said reversing the prolonged slowdown in the agriculture sector is essential for "our goal of inclusive growth, for ensuring that growth benefits all sections of society and all regions of the country." He said the NDC could also consider launching a food security mission for raising production of wheat, pulses and edible oil to contain the rising prices.