Revive Agriculture Growth for Food Security, Inflation Control, Growth and Jobs Creation: Rana Kapoor, President ASSOCHAM

The agriculture sector has the potential to generate significant employment and grow at over 8% as demonstrated by Gujarat, Madhya Pradesh and Chhattisgarh. Growth in high value agriculture, increased farm productivity and enhanced investments will boost the sector's GDP contribution. An enabling policy environment, appropriate technology and supply chain efficiency are much needed to address food inflation, boost investment-led growth and ensure food and nutritional security for the Nation.

ASSOCHAM, therefore, recommends short and long term measures to the Government to give a significant boost to agriculture sector, which has the potential to take India's GDP to 8% in the near future and create millions of jobs in rural areas. Besides, Agriculture growth will create a surge in consumption based demand in the country giving boost to manufacturing and services sector as well.

 

Immediate / Short Term Recommendations:

Implement Model APMC Act in all states to boost agri-marketing and supply chain efficiencies

Replace input based subsidies to farmers with low cost credit, direct cash transfers and investment subsidies - link MGNREGA to agriculture for asset creation

Develop effective communication systems between farmers and laboratories by setting up broadband connections and regional Kisan TV channels to disseminate real time data

100% FDI allowed in Food Processing Industries - encourage private and foreign capital and grant priority sector status for all food processing credit requirements

Adopt scientific approach to roll out biotech applications for better yield and nutrition

Encourage high value agriculture like horticulture, floriculture, fisheries, poultry and dairy to enhance job creation and anchor an inclusive growth model

Set-up dedicated GAF (Geographical Appellation Fund) to promote Geographical Appellations of various Indian brands - Darjeeling Tea, Nagpur Oranges, Ratnagiri Alphonso - which have the potential to become global brands

Long Term Recommendations:

Facilitate further investments in agri infra and PDS - storage, logistics and distribution through PPPP - allow greater role of States under Decentralized Procurement Scheme and build regional focus centred around storage deficit States

Better policies and technologies to increase pulses and oilseeds production - will contain inflation and curb imports (over 60% of current Agri-import bill3)

Promote alternate usages of non-cultivable land to boost job creation - soil and seed testing labs in villages, processing units, mega food parks

Reduce post-harvest loss - develop cross-country rail network, promote cluster-based storage systems for different crops, set up Food Processing Industries, include pulses and perishables in public distribution and mid day meal schemes

Revamp agri-exports through consistent and stable trade policies and focus on integrated food processing clusters for high value exports

Develop robust water supply network - promote optimum utilization through micro-irrigation, rain water harvesting, linking of waterways and rivers

Focus on dairy as a key high value segment - integrated dairy farms, breed improvement, fodder management and quality enhancement of milk

The story of Indian agriculture has been one of tremendous growth on the supply as well as demand side. Critical challenges like growing population, stagnating crop yields, achieving nutritional security and complex climatic changes stand in the way of sustainable development of the sector. A well formulated Government policy with a focus on substantially improving Agri-infrastructure, thrust on R&D, encouraging high value agriculture along with an enabling regulatory mechanism can ensure universal food and nutritional security for the nation and substantially enhance India's competitiveness in global agri-business.

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