The Hindu Business Line : FICCI survey calls for higher farm growth

New Delhi, July 29 With inflation inching towards the five per cent mark, a survey by FICCI has suggested measures to address the growing demand-supply imbalance in the agrarian sector.

The survey calls for improving farm productivity, strengthening the agricultural extension system, creating ‘One Common Market’ for the country, creating awareness among farmers on futures trading as an effective price discovery mechanism and encouraging private-sector participation in developing agri-marketing infrastructure and technology development and transfer.

Company feedback

The survey, based on feedback from companies using primary articles as raw materials and those involved in trading and marketing of agri-commodities, shows that the continuing pressure on prices of primary products is driven by the worsening supply shortage in agri-commodity markets which, in turn, could be linked to the dismal growth of agriculture and grossly inefficient agriculture marketing infrastructure.

A sustained phase of high growth over the past few years, translating into high consumption demand, has played a vital role in further widening the supply-demand gap in the case of primary commodities, according to the chamber.