The Hindu Business Line : Revitalising the farm sector

India is running a three-legged race. Two are muscular and strong; but one weak leg is retarding the country's rapid progress. This is the stark reality that emerges from the experience of the last 10 years, over the Ninth and Tenth Plan periods. That weak leg, obviously, is agriculture, growing at an annual average rate of less than 2 per cent in recent years and blotting the growth story. That enervated leg needs a strong booster shot. It is not clear if the Centre is willing to `think out of the box ' and treat agriculture and related issues differently from the usual budgetary exercise. The Finance Minister may have had his political and legal compulsions when he pointed out, during the recent meeting with agriculturists, that they must highlight only those issues that the Centre can address as `agriculture' is essentially a `State' subject under the Constitution. And there lies the problem.

Agriculture may be a State subject, but the perception that the country's food and nutrition security is the responsibility of the Central government is increasingly gaining ground. The Centre should not abdicate its primary responsibility. Agriculture is perhaps next only in importance to Defence; and we cannot afford let it remain a laggard. The Agriculture Minister recently called for greater budgetary outlays (both at the Centre and the States) and investment in agriculture sector. Without doubt, public investment in the farm sector has been low and needs to be stepped up substantially. Regionally differentiated strategies are required for crops. But just pumping in funds is unlikely to yield the desired results. Timely and efficient implementation of projects and programmes is the key. We need a system of performance appraisal and monitoring of funds deployed. A periodic `progress card' will make policy-makers more accountable.

Another critical issue is the role of State governments in agricultural development. As the Minister has asserted, it is imperative the States provide adequate funds, strengthen infrastructure and help capital formation and investment in agriculture. The fact of the matter is, some do not have requisite funds while others fail to display enough commitment. There are no signals that the situation is going to improve any time soon. It would make tremendous commercial sense to plough back a major part of the surplus generated by allowing use of agricultural land for non-agricultural or industrial purposes. It is not for nothing that most developed economies pump in billions of dollars as farm subsidy. Given the serious `political risk' that any government could face, it may be time to review the constitutional position of `agriculture', which currently is in the `State' list. The time has come to think through this issue. Let the draft National Policy for Farmers become the starting point for a national debate on the future of Indian agriculture and whose responsibility it is.

More Stories on : Editorial | Agriculture | Economy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Oxford University's animal research lab — Animal-rights activists want humane technologies

India-Japan ties — Moving to the next level

Revitalising the farm sector

Mission for 2007 — Defusing long ignored time-bombs

The corruption-efficiency trade-off

When economics orbits space missions

PocketPlus

Power cuts