With 60 per cent of farm land being rainfed, he said the government will "complete the long-pending irrigation projects on priority and launch the 'Pradhan Mantri Krishi Sinchayee Yojana' with the motto of 'Har Khet Ko Paani.'
The Indian Meteorological Department (IMD) has forecast a below-normal monsoon this year because of the El-Nino effect.
Addressing the first joint sitting of Parliament after the general elections, Mukherjee said: "My government is alert about the possibility of a subnormal monsoon this year and contingency plans are being prepared."
Committed to giving high priority to water security, Mukherjee said: "There is a need for seriously considering all options, including linking of rivers, where feasible, for ensuring optimal use of our water resources to prevent the recurrence of floods and drought."
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The government will nurture water conservation and ground water recharge by harnessing rain water through 'Jal Sanchay' and 'Jal Sinchan'. Micro irrigation will be popularised to ensure 'per drop-more crop'.
The government will increase investment in agriculture, both public and private, especially in agri-infrastructure. Steps will also be taken to convert farming into a profitable venture through scientific practices and agro-technology, he said.
The government will also adopt a 'National Land Use Policy' to facilitate scientific identification of non-cultivable land and its strategic development, he added.
It will offer incentives for setting up food-processing industries. Existing cooperative sector laws will be reviewed to remove anomalies and lacunae, he added.