Agri sector to show growth of 2.3%

The survey, tabled in Parliament today advocates the following:

• Development of alternative markets and a shift from the expensive public procurement and distribution system for better returns to farmers.

• A distinct bias in agriculture price support policy in favour of foodgrains in the past may have distorted cropping pattern and input usage and ‘may require corrections’.

• For providing credit incentive to farmers there is a need for a paradigm shift to encourage the banks to look at provision of credit to agriculture as an opportunity for profit.

• Emerging areas like horticulture, floriculture, organic culture, genetic engineering, food processing, branding and packaging and futures trading have high potential for growth.

• Low productivity has afflicted the growth of Indian agriculture though India accounted for 21.8 per cent of the global paddy production, the yield per hectare in 2002 was less than some neighboring countries.

• Enhancement of agricultural growth is essential for achieving an overall GDP growth rate of 8-10 per cent.