The Hindu Business Line : Bridge yield gaps to raise farm output, says PM

Farm push
PM calls for full financial inclusion of farmers in accessing institutional credit at the earliest.
Plan panel, Agricultural Ministry urged to formulate State-specific agricultural strategies.

THINK TANK: The Prime Minister, Dr Manmohan Singh, with (from left) the Deputy Chairman of the Planning Commission, Mr Montek Singh Ahluwalia, the Finance Minister, Mr P. Chidambaram, and the External Affairs Minister, Mr Pranab Mukherjee, during the full Planning Commission meeting in the Capital on Monday. The Prime Minister called for bridging the wide yield gap in many crops. — Kamal Narang

New Delhi May 14 The Planning Commission is likely to evolve a new method of delivering fertiliser subsidy in a cost-effective and nutrient-neutral manner with the Prime Minister, Dr Manmohan Singh, on Monday calling for steps to bridge the wide yield gaps in many crops. He also wanted the full financial inclusion of farmers in accessing institutional credit at the earliest.

Presiding over the full meeting of the Planning Commission here, the Prime Minister said that increased agricultural production in the next three or four years could only come from bridging the substantial yield gaps in all States — between yields actually achieved at the farm level and the yields that are feasible, given the agro-climatic constraints and the extant technology.

He said that since the scope for area expansion was extremely limited, except for what could be done through increased cropping intensity via irrigation, the need to focus on yield gap reduction was important.

State strategies

Dr Singh said agriculture being a State subject, it was necessary to evolve State-level strategies which must take note of all inter-related actions needed to augment production and productivity in both crop and non-crop areas in State.

He said that simultaneously, the Centre should also devise ways of helping States, which were ready to evolve such strategies. The Prime Minister said that he has directed the Plan panel to work with the Ministry of Agriculture to come with specific proposals to promote State-specific agricultural strategies.

Dr Singh said that the proposed strategies should deliver some results in the short and medium term so that benefits remain visible to farmers, consumers and the rural economy in order to "avert any crisis in the agrarian sector and fulfil the needs of a growing economy".

Later, briefing the media on the deliberations of the meeting, the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, said that the Prime Minister spoke about the need to question both the quantity and the manner in which fertiliser subsidy was delivered.

Stagnation concerns

He said that the meeting noted that the stagnation in foodgrain production in recent years was a matter of serious concern and special missions should be launched aimed at closing yield gaps in wheat, rice and pulses.

It was also noted that farm diversification beyond cereals into horticulture and non-crop agriculture was needed for achieving the four per cent growth target.

Here, linking farmers to the final consumer through modern marketing and contract farming offer attractive possibilities and the role of private investment in this area would be critical, Mr Ahluwalia said, adding that the National Development Council (NDC) meet on agriculture scheduled later this month would evolve a consensus on all these issues.

Referring to the farm credit issue, the Prime Minister said that the ongoing programme for financial inclusion should be expedited so that "we can achieve full inclusion in two or three years", and urged that the Finance Ministry and banks should work toward this goal.

In his intervention, the Union Finance Minister, Mr P. Chidambaram, said that the Planning Commission proposal for Additional Central Assistance (ACA) as a desirable method for transfer of resources could not be feasible.

He doubted "whether large outlays for sectors which require substantial funds can be channelised through ACA".

Even conceding that ACA for Agriculture may be necessary and desirable, the Finance Minister said that its horizontal allocation across States needs to be driven by a transparent formula.

Mr Chidambaram said: "If we can find additional resources to the extent indicated in the Speech, I would urge the Planning Commission to allocate the bulk of these resources to agriculture and allied activities."

The meeting was attended by the External Affairs Minister, Mr Pranab Mukherjee, Minister for Agriculture, Mr Sharad Pawar, Minister for Human Resource Development, Mr Arjun Singh, Minister for Rural Development Mr Raghuvansh Prasad Singh, besides members of the Plan panel.

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