The Hindu Business Line : FAPCCI call to back R&D in agriculture

THE Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) has called for support to research and development in agriculture and allied sectors, keeping in mind the unfolding food processing opportunities.

"Research in post-harvest technologies and value-addition is the need of the hour. The agricultural sector at least needs two per cent of agricultural GDP (gross domestic product) or one per cent of GDP on R&D," Mr K. Narayana Rao, Chairman of FAPCCI's Agriculture Committee, and Prof. I V. Subba Rao, a senior member in the committee, told Business Line.

On the pressing problems of the sector in the post-WTO regime, they said the country needed to take a holistic approach to develop the sector.

"The Government should set up an expert body to extensively study and map agricultural zones to identify the right kind of areas for growing specific crop varieties.

"This will help in both improving productivity and effectively using natural resources," said Mr Rao, also the Managing Director of GMR Industries Ltd.

Integration of agriculture with industry too is important.

Dr I.V. Subba Rao, former Vice-Chancellor of Acharya N.G. Ranga Agricultural University (ANGRAU) and General President of the Indian Science Congress Association, said the country should take up total reforms in marketing of agricultural products.

In the absence of warehousing and India-specific processing technologies, the farmers are unable to tap the huge potential in export of food processing and by-product utilisation.

On credit facilities, he said it was one of the biggest problems the farmer faced.

"Institutional lending has been very small. Farmers depend on private lending options up to 80 per cent of their credit needs.

"This should change. At least 80 per cent should come from institutions at an interest rate of four per cent," he said.

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