Survey projects Agri growth at 2.3 per cent

New Delhi, Feb 27: The Economic Survey for 2005-06 has estimated a growth rate of 2.3 per cent against the lower growth rate of 0.7 per cent during 2004-05 with foodgrains production expected to touch 209.3 million tonnes (mt) against 204.6 mt in 2004-05.

The Survey, tabled in the Lok Sabha today, based its projection for the current year in the wake of near normal rainfall. However, delayed monsoon and its uneven distribution had some limited adverse impact on kharif crops like coarse grains, pulses, oilseeds, cotton, rice and plantations.

The low domestic production will continue to be a subject of worry as the production of pulses and oilseeds has been projected to be below the requirement and consumption during the current year too. Last production was 13.4 mt and 26.1 mt respectively.

Import of pulses and oilseeds will constitute a major share at 12.8 and 56.1 per cent valued at 281.8 million dollars and 12,37.3 million dollars respectively of the total agricultural exports estimated at 76473.9 million dollars during 2005-06.

The kharif crop production is estimated at 105.3 mt against last year's 103.3 mt. and rabi crops are expected to be around previous year's level of 101.3 mt. The oilseeds production for 2005-06 is estimated at 14.6 mt as per first advance estimates while rabi oilseeds are expected to touch 10.4 mt subjected to favourable weather.

According to the Survey, the sugarcane output this year is pegged to increase to 257.7 mt against 232.3 mt last year. However, the cotton production may come down to 15.9 mt from 17 mt in 2004-05.

The production of horticulture products, which contributes 28 per cent of the agriculture GDP, is estimated to increase to 178.1 mt from 164 mt in 2004-05 as the area under plantation had increased from 17.8 million hectare (mh) to 18.6 mh.

India will continue to be the second largest producer of fruits and vegetables in the world with production of 49 mt and 85 mt respectively in 2003-04.

Noting the production of pulses and oilseeds below the domestic requirement, the Survey pointed out a ''bias'' in agricultural price support policies in favour of foodgrains which have distorted cropping pattern and input uses which needed immediate correction.

The survey suggested a shift from current minimum support price (MSP) mechanism and Public Procurement System and developing alternative product markets for crop diversification and broad-based agricultural development.

UNI