The Hindu Business Line : FICCI for doubling Plan allocation to farm sector

THE Federation of Indian Chambers of Commerce and Industry (FICCI) task force on agriculture has suggested that to achieve 8 per cent GDP growth, agriculture would need to grow at least at 4 per cent per annum.

In a presentation on `Priority areas for agri policy reforms and investments, including irrigation projects' before the Union Minister for Food and Agriculture, Mr Sharad Pawar, the Chamber said, "This will require very large investments as unfortunately over the last few Five-Year Plans the share of agriculture and allied sectors in Plan investments has declined."

There was need for public investment of over Rs 1,00,000 crore in agriculture and allied sectors during the Tenth Five-Year Plan, up from Rs 58,933 crore provided in the Plan, Mr P.M. Sinha, Chairman, FICCI task force on agriculture, said.

An enabling environment could attract another Rs 2,00,000 crore from the private sector, he said. The FICCI team accompanied by its President, Mr Y.K. Modi, met the Minister on Monday.

Further, a suggestion was made to abolish the Agricultural Products Marketing Committee (APMC), the Essential Commodities Act and the Mandi Tax immediately, enabling the farmer and food processors to access the market without going through intermediaries. Contract farming with necessary legislation needed to be encouraged.

To promote processed food industries, it was suggested that there is an urgent need to integrate multiple food laws, currently being administered by nine ministries. Only one ministry should administer laws, revised to be in line with the best international practices.

FICCI offered suggestions on areas of public-private partnership in agri and allied industries and reforms to promote processed food industry with backward linkages for the farmers.

It has also been suggested to the Government to promote setting up warehouses close to farms and introducing the warehouse receipt system. This will ensure that the farmer receives 70 per cent of the price of his crop when he stocks his produce, the balance to be given when he decides to sell based on the price as posted daily by the Agri Forward Market Commission. The Chamber also pleaded for facilitation of the food retail supply chain, including entry of foreign direct investment (FDI), as most large chains have backward linkage with farmers.

In the area of infrastructure, it was suggested encouraging both public and private sector to invest in cold storages, dehumidified and controlled temperature warehouses and refrigerated and insulated transport facilities.

The task force suggested both, the early completion of nearly 400 incomplete irrigation projects languishing for 15 years that would cover 21.5 million hectares and investment in minor irrigation programmes, including optimal use of water through micro/sprinkler/drip irrigation systems.