The Planning Commission today said the amount being spend on power and fertiliser subsidies can be better utilised to improve agriculture infrastructure and raise farm productivity.
Public investment in the agriculture sector can be stepped by diverting the electricity and fertiliser subsidies, Planning Commission Deputy Chairman Montek Singh Ahluwalia said here while inaugurating the 69th Annual Conference of the Indian Society of Agricultural Economics.
These funds, which run into thousands of crores, can be used to improve the quality of land, enhance availability of water and raise farm productivity, he said, adding there is a pressing need to upgrade roads and extension services in rural areas.
Ahluwalia further said that four per cent agriculture sector growth rate as envisaged in the 11th Plan (2007-12) can be achieved despite drought by improving the quality seeds and adopting scientific methods of farming. Use of biotechnology can double the agriculture output, he added.
The Plan panel head also underlined the need for changing land laws to allow farmers to lease out land and quit agriculture for better opportunities.
The conference is being attended by 300 agriculture economists and policy-makers, besides ICRIER chairperson Isher Judge Ahluwalia and government officials.
