The agriculture sector, though on a faster growth track due to a rising private investment, may still not be able to sustain last year’s double-digit growth, a CII study has said.The agriculture sector still faces many hurdles — poor productivity, falling water levels, expensive credit, a distorted market and unfriendly private investment climate — that prevent India from becoming the ‘food factory of the world’, said a CII press release, quoting the study. CII has come out with a five-point plan calling for agriculture reforms and increased private investment to put India on a higher growth mode, the release said, adding that an ‘‘Agriculture Summit 2004’’ was scheduled to be held at Jaipur on May 11 and 12.It says with increasing urbanisation and purchasing power agri-business companies are developing new models to reach out to farmers and consumers with new technologies. These companies are investing in modern supply chains and in organised food retailing, making India a medium-sized agricultural exporter, the CII said. ‘‘Faster growth in agriculture tomorrow will happen because of rising private investment in agriculture today,’’ Y.C. Deveshwar, chairman, Agriculture Council, CII, said. An improved rural infrastructure, an awareness among farmers to become internationally competitive, adoption of new technologies and political will, etc. are the key to the comeback of this sector, the study says.According to CII’s plan, farmers would benefit by greater corporate investment in agriculture, mainly in areas like getting competitive finance and markets besides suppliers of knowledge.
