Farm prospects depend on pace, quality of reforms: Survey

New Delhi, Feb 27 (UNI) Forecasting bright prospects for agriculture in the short-term, the Economic Survey has indicated quick and qualitative reform initiatives in tomorrow's Budget to double the growth rate of the farm sector to four per cent.

''The short-term outlook for agricultural sector appears bright...In the medium-term, the prospects for agriculture will be determined by the pace and quality of reforms in this sector,'' said the Survey tabled in Parliament by Finance Minister P Chidambaram.

The performance of the farm sector in the medium-term would also be determined by the ability to increase investment in surface irrigation, ground water recharge of aquifers, and restoration of water bodies and developing high-yielding varieties of non-cereal food and cash crops, it said.

With a welcome rainfall in early February, prospects of wheat and other rabi crops have brightened. The production of cotton, sugarcane and jute and mesta would set a new record in the current year.

However, the production of oilseeds is expected to witness a decline of 15.7 per cent. There has been a sharp increase in the area under wheat with high domestic and international prices providing incentives to the farmers.

World Bank's commodity price index for agriculture which was 104.7 (assuming that it was 100 in 1990) in January-December 2004 reached 133.7 in January 2007.

Wholesale prices of most agricultural products were also firm in 2006-07. Together with better crop prospects, this augurs well for farm income, the Survey said.

UNI