Agri infrastructure key to managing inflation: Experts

The domestic agricultural supply side infrastructure needs to be strengthened to tide over the rising prices of food items and limited results of the government's inflation control measures, according to experts.

K C Bhartiya, president, Pulses Importers Association, said at the Grain Asia and International Pulses Forum that reduced yield and declining acreage had caused the pulses production to stagnate at 13-14 million tonnes.

"There is a grave mismatch in supply and demand. It is necessary to identify ways of improving supply. The government should encourage the pulses production by increasing the minimum support price," he said. Demand from bio-fuel sector is equally responsible for the high international agri-commodity prices.

According to Vijay Setia, president, All India Rice Exporters' Association, the country is suffering huge losses in agriculture.

"Our paddy production is around 2.4-2.8 tonnes per hectare, which is far behind China's output of 6 tonnes," he said. We can improve the production by 15-20 per cent using the same resources, he added.

Looming land constraints, water scarcity and unsteady yields are also big issues that might render the future uncertain.

Atul Chaturvedi, president (agro) Adani Enterprises, said, "Volatile equity markets resulted in the shifting of funds to commodities market, which played havoc. The fight for acreage among commodities is fierce." There is a shift from wheat to other lucrative crops that are more aligned to the increase in international prices.

There was also agreement among the experts on the use of hybrid crop varieties. "GM has still not been looked at, seriously," said Chaturvedi.

The private sector should be invited to participate in handling and storage of agricultural produce, the experts emphasized.