Agriculture suffering from multiple deficits: PM

New Delhi, Oct 18: Prime Minister Manmohan Singh today held credit, infrastructure, market economy and knowledge deficits as responsible for deterioration of agrarian and rural economy and said bridging of them could only bring about a second Green Revolution and pull the farmers out of their marginal existence.

Speaking at the inauguration of second Agricultural Summit-2006 organised jointly by Agricultural Ministry and FICCI here, Dr Singh said agriculture was facing real challenge in the next decade and an integrated aproach had to be adopted to make up these deficits.

He identified lack of investment, both public and private, over the years was also one of the major causes of the decline of agriculture and said his government had succeeded in arresting the decline in public investment in farm sector.

The UPA government also increased the flow of institutional credit at a low interest rate of 7 per cent and revived the cooperative credit system through the infusion of of a Rs 13,000 crore package.

The Prime Minister, however, stressed the need of creating new institutional structures such as Self-Help-Groups (SHGs) and micro finance institutions to provide improved and reliable access to credit besides bringing private money lenders under some form of regulations.

The government was making efforts to increase investment in irrigation, he said, adding that ''there is need to shift from a focus of yield per acre to yield per unit of water consumed to improve the efficiency in water use.'' There was a greater need for applying technology and infusion of knowledge to improve farming of many crops and their productivity particularly in dryland areas. On improving of agricultural marketing, he said the immediate need was to create an integrated common market with efficient intermediation.

Speaking in this context, Agriculture Minister Sharad Pawar said 22 states had already amended their Agricultural Produce Marketing Committee (APMC) Acts to impart efficiency to the marketing of agricultural produce with the interplay of private players. As many as 340 districts of the country had witnessed 7 per cent growth in horticutlure, he added.

In the same vein, Dr Manmohan Singh said the government's farm development strategy was to improve the real income of farmers and the quality of life of farming community.

However, the government will continue to adopt a 'balanced approach' as to provide food security to the poorest sections without compromising the returns of farmers. And, at the same time, steps would be taken to keep the inflation and prices under check.

Summing up the steps taken to effect the reforms in agriculture, Mr Pawar said besides amending the APMC acts, number of items in the Essential Commodities Act had been reduced, contract farming and direct marketing of farm produce initiated and integrated Food Law an Warehouse Receipt Bill had been tabled in Parliament.

FICCI President Saroj Kumar Poddar also expressed satisfaction over the pace of reforms in agriculture like modernisation of agricultural marketing infrastructure through private investment and setting of terminal markets.

But he expressed dismay on secular decline of agricultural growth rate from 4.7 per cent in 8th plan to only 1.5 per cent during the current plan. The foodgrains prduction was showing stagnation and non-food segment was not translating into higher income for farmers because of low levels of value addition. And India failed to build a sustained export market despite being largest producer of farm commodities.

UNI