The Hindu Business Line : MCC for step-up in capital investment in agriculture

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MCC for step-up in capital investment in agriculture

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Kolkata, July 13 Merchants Chamber of Commerce (MCC), affiliated to Assocham, has chalked out an action programme to draw the Government’s attention to some of the critical issues facing Indian agriculture sector.

The Chamber has called for a sharp step-up in capital investment in agriculture, which has declined over the years – from 3.5 per cent of agricultural GDP during 1981-85 to 1.9 per cent in 2001-03. Investments since then, it is stated, have hovered around 2 per cent, “which needs to be increased to 4.5 per cent”.

Talking to Business Line here recently after taking over as the new President of MCC, Mr Atul Churiwal said the prices for food crops should be revised to make them attractive for farmers in competition with cash crops. “We p ropose to take up this issue with the Agricultural Prices Commission and the Planning Commission.”

Focus areas

Mr Churiwal said the chamber will focus on the three key issues of agricultural planning, problems of micro, small & medium enterprises and internal trade issues, like need for uniform fiscal measures, logistics support for supply chain etc. The chamber has suggested a separate ministry of internal trade, which can implement the necessary reforms and also coordinate with the State governments.

Interactive sessions

The chamber has planned to hold interactive sessions with concerned Government officials, industrialists and the Planning Commission to try and effect a paradigm shift in the approach, policy prescription and action programmes of the Central and State Governments.

Concerned over the Rs 58,000-crore post-harvest losses suffered annually of foodgrain, fruits and vegetables, Mr Churiwal said this can be prevented through scientific management and technological inputs in handling, storage and distribution.

Seeking a re-focus on agricultural planning, he said farm income over the years has been eroded in real terms – from 40 per cent to 50 per cent -- in the last 10 years.

Cereals output

According to him, while population has grown from 832 million in 90-91 to 1.1 billion in 2005-06, an increase of nearly 33 per cent, total cereals production has grown by only 18 per cent (from 138 million tonnes in 90-91 to 162 million tonnes in 05-06. Coarse cereals such as jowar, bajra, makai and others have grown by 11 per cent (from 35 million tonnes to 39 million tonnes).

The chamber has also sought creation of a separate ministry of internal trade at the Centre and also at the State level, so that States can formulate policies to tackle their special problems within the framework of a national policy.

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