ECONOMIC SURVEY 2014-15. Regulatory framework on GM crops need a rethink, says Survey

Making a case for productivity-led growth strategy in agriculture, the Economic Survey 2014-15 has observed that the regulatory framework on genetically modified crops and their implementation deserve a rethinking. 

"Given the lack of evidence on negative consequences from Bt and other genetically modified (GM) crops, and the significant potential productivity, food security, and sustainability benefits, the corresponding regulatory frameworks and their implementation deserve rethinking," the Survey said.

The Survey, which pegged the GDP growth in agriculture and allied sectors at 1.1 per cent for 2014-15, said the current strategy of price-led growth in agriculture was unsustainable. It suggested the government to achieve growth in agriculture relying more on non-price factors such as yields and productivity. "To improve resilience of the agricultural sector and bolster food security - including availability and affordable access - our strategy for agriculture has to focus on improving yield and productivity," it said.

On the farm trade, the Survey said that reform is required in the import policy of agricultural products. "The applied tariffs for imports should be linked in a countercyclical manner with international prices so that the landed prices of imported commodities fall within a known range. This would protect farmers from adverse impact of steep fall in commodity prices and facilitate long-term investment in agriculture," the Survey said 

"While the trade policy regime should be stable, it should also be nimble to quickly respond to the changed export duty structure of the exporting countries aimed at pushing value-added products by neutralizing our duty differential between raw material and finished product," it added

The Survey also said that there was an increasing demand for opening up of the export of pulses which would incentivize farmers to invest in pulse cultivation and for a reasonable duty structure to be devised to contain excessive imports. "Further, a pre-announced import duty structure will bring stability in domestic edible oil prices leading to increase in production of oil seed/palm. This will also result in reduced incidence of prices falling below MSPs of oilseeds requiring procurements by government agencies," it said.

The Survey also called for strengthening of the commodity futures market. At present, 43 of the 113 commodities that are notified for futures trading are actively traded in four national exchanges and six commodity specific exchanges.

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