Allocations on agriculture to go up, Missions to be set up

New Delhi, May 14 (UNI) The Full Plan Panel meet today took a number of key decisions to step up the growth rate in agriculture, including setting up of Special Missions for wheat, rice and pulses; hiking allocation to agriculture and restructuring fertiliser subsidy.

The meeting, which lasted nearly 2 hrs 15 minutes, was Chaired by Prime Minister Manmohan Singh. It's focus was on drawing up a strategy for agriculture for the Eleventh Plan.

The Prime Minister in his closing remarks at the event asked State governments to step up spending on agriculture to at least six per cent of the State's total expenditure in the Eleventh Plan period.

Both Dr Singh and Finance Minister P Chidambaram expressed grave concern at the fact spending by State governments on agriculture had declined in recent years from an already low level of five per cent of total governmental expenditure to the even lower level of 3.5 per cent.

Addressing a press conference to discuss details of the full panel meet, Planning Commission Deputy Chairman Montek Singh Ahluwalia said the State's cannot shirk their responsibility in the vital area of agriculture.

He said there was a consenus at the meet that additional resources need to be allocated to agriculture through supplementary demands for grants, but declined to give any figure in this regard. He, however, said the figure would be worked out at the NDC meet on May 29, 2007.

A national consensus is to be drawn up at the meeting of the NDC on the same subject which will evolve a national consensus on the need for States to spend at least six per cent of their total spending.

Noting that stagnation in foodgrain production in recent years was a matter of grave concern, Dr Ahluwalia said, ''Special Missions need to be launched aimed at closing the yield gaps in wheat, rice and pulses. The yield gaps between actual yields obtained in the field and yields that can be obtained in farm conditions using best practices, varies from 40 per cent to 100 per cent." The Prime Minister expressed concern at the manner in which the fertiliser subsidy was ballooning. In addition to the fiscal sustainability of such a subsidy in the long run, it was necessary to see whether such a subsidy was delivering the outcomes that were desired, both in terms of yields and the mix of nutrients.

"We need to question both the quantity and the manner in which the subsidy is delivered. The Planning Commission may quickly examine this matter and come up with alternate models for delivering the fertiliser subsidy in a more cost effective and more nutrient neutral manner", he said.

The view had the endorsement of the other members who were part of the meet.

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