Survey expects agri sector to clock a growth of 6% in the current fiscal, output is projected to touch 209 million tonne
The agriculture sector has shown an upward, albeit unsteady, growth in the past several years despite a drop in public investments, lack of structural reforms and the existing controls and curbs. The accumulation of foodgrain stocks has tended to become a fiscal burden with the food subsidy mounting to over Rs 13,670 crore this year, against Rs 2,850 crore in 1991-92.
The Economic Survey 2001-02 expects the sector to clock a growth of 6 per cent in the current fiscal thanks to copious and well-distributed monsoon. While the foodgrains output is projected to touch an all-time high over 209 million tonnes, the non-food crops are also expected to perform well.
The survey expresses disquiet over the accumulation of over 58 million tonnes of foodgrains, blocking huge monetary resources in an unproductive asset and imposing an annual carrying cost of Rs 5,600 crore.
To tackle this problem, a three-pronged policy approach has been suggested: Shifting focus to increasing output of non-cereal foods like fruits and vegetables; expansion and spatial location of appropriate storage facilities for fruits, vegetables, milk products and other animal products; and processing of agricultural products, especially perishables.
