Capital formation is on decline in agriculture: Survey

New Delhi, Feb 27 (UNI) The capital formation in Indian agriculture continues to be low 1.9 per cent of GDP since 2002-03 even as public investment to gross investment in agriculture increased by 6.5 percentage points from 1999-2000 to reach 24.2 per cent in 2005-06, says Economic Survey 2006-2007.

The capital formation has been low since 1990-91 with decline in public investment in agriculture infrastructure, particularly irrigation.

It was lowest at 1.26 and 1.37 per cent during 1998-99 and 1999-2000 respectively.

The disturbing trend in public investment is the outcome of the fact that the cash-strapped state governments do not have enough funds to spend on agriculture.

Besides, the consumption of chemical fertilisers (in terms of nutrients) grew by 10.6 per cent to 20.34 million tonnes (MT) during 2005-06 with its average consumption going up to 104.5 kgs per hectares in 2005-06 from 94.52 kgs in 2004-05.

Per hectare application of fertilisers is quite high in Punjab, Haryana, Andhra Pradesh and Tamil Nadu and quite low in Rajasthan, Orissa and Madhya Pradesh apart from eastern region.

UNI