full planning commission meet on agriculture

Monday, September 26, 2005

The Prime Minister, Dr. Manmohan Singh, has convened a meeting of the Full Planning Commission tomorrow to discuss problems of agriculture sector. The meeting follows sharp deceleration noted in agriculture growth from Ninth Plan onwards in the Mid-Term Appraisal of the Tenth Plan.

The Tenth Five Year Plan had targeted gross domestic product growth in agriculture and allied sectors at 4 per cent per annum, aiming to reverse a sharp deceleration in the second half of 1990s. From 3.2 per cent per annum in the period between 1980-81 and 1995-96, it came down to 1.9 per cent per annum during 1996-97 to 2001-02. Growth in agriculture and allied sectors during the first three years of the Tenth Plan averages only one per cent per annum.

The per capita agricultural GDP has also shown no significant upward trend after 1996-97. The erratic monsoon in recent years has one again underlined concern that led the Tenth Plan to lay emphasis on irrigation, water conservation and land management, but actual growth outcomes during Ninth Plan and in the Tenth Plan so far suggest deeper problems as well. This requires comprehensive re-examination of the agricultural strategy.

The Mid-Term Appraisal has identified some priorities to revive agricultural growth. These include need to recognize problems on both the demand and supply sides. On the demand side stress should be on diversification and exports with increased focus on increasing non-farm employment. On the supply side it has suggested increase in investments with equal focus on returns to investments. The Mid-Term Appraisal has also suggested increased investments in water conservation, irrigation, support system in research, extension, input supply, marketing, credit and insurance.

The meeting of Full Planning Commission will provide valuable inputs to the NDC Sub-Committee on Agriculture, which was set up recently by the National Development Council. The final outcome will help Planning Commission in evolving a strategy in reviving growth rate in agriculture.

Besides full time Members of the Commission, Union Defence Minister, Shri Pranab Mukherjee, Human Resource Development Minister, Shri Arjun Singh, Agriculture Minister, Shri Sharad Pawar, Railway Minister, Shri Lalu Prasad, Finance Minister, Shri P. Chidambaram, Information Technology & Communications Minister, Shri Dayanidhi Maran, and Minister of State for Planning, Shri M.V. Rajshekharan will also participate.

NNK : RK