Step up growth of allied, non-farm activities

BS Reporter / New Delhi July 3, 2009, 0:57 IST

Micro-irrigation, watershed development need more attention.

There is clearly a need for a renewed focus on improving agricultural productivity, notes the Economic Survey,

while stepping up the growth of allied and non-farm activities.

As it notes, the contribution of agriculture, including allied activities, as a percentage of the country's gross domestic product (GDP) has been falling over the years — from 21.7 per cent (at constant prices) in 2003-04 to 17.8 per cent in 2007-08.

Agriculture alone accounted for 16.3 per cent of GDP. But it also accounts for as much as 52 per cent of employment.

The sector witnessed yearly growth of 4.9 per cent between 2005 and 2008. However, in 2008-09, the growth declined to 1.6 per cent (revised estimates). The figures, however, need to be viewed in the light of the high base of the previous years.

The survey also admits that in the case of certain crops like sugarcane, extreme variability in acreage and production over the years has been a matter of concern.

On the other hand, in the case of pulses, production has just not kept pace with the requirement, leading to a rise in prices, given that its availability in international markets is limited.

For three consecutive years (2005-06 to 2007-08), foodgrain production recorded an average annual increase of over 10 million tonnes. Total grain production in 2007-08 was 230.78 mt, as against 217.3 mt in 2006-07 and 208.6 mt in 2005-06. As per the third advance estimates, production of foodgrain in 2008-09 is estimated to be 229.85 mt, lower than the target of 233 mt set out for the year, as also the final estimates of 230.78 mt for 2007-08.

The sector, as noted, accounts for 52 per cent of jobs in the country, and contributed to 12.2 per cent of national exports in 2007-08. However, it faces challenges on various fronts.

For instance, the scope for increase in the net sown area is limited and farm sizes have been shrinking.

During 2008-09, the area sown at an all-India level under kharif was 2.3 per cent less than the area sown in 2007-08, of 1,03.9 million hectares.

The irrigation sector, too, notes the report, requires a renewed thrust in both investment and modern management.

State governments were provided Rs 27,996 crore as Central Loan Assistance (CLA)/grant for major and medium projects up to December 31, 2008.
 

NEEDS PRODUCTIVITY BOOST Foodgrain production (million tonnes)
Crop	2007-08	2008-09
	Final	Targets	Third advance estimates	Percentage increase(+) Decrease(-) over final 2007-08	Percentage increase(+) Decrease(-) vis-à-vis target for 2008-09
Rice	96.69	97	99.37	2.8	2.4
Wheat	78.57	78.5	77.63	-1.2	-1.1
Coarse cereals	40.76	42	38.67	-5.1	-7.9
Cereals	216.02	217.5	215.67	-0.2	-0.8
Total pulses	14.76	15.5	14.18	-3.9	-8.5
Total foodgrain	230.78	233	229.85	-0.4	-1.4

So far, 91 major and medium irrigation schemes have been completed. The report suggests there's considerable scope for development of micro-irrigation systems and watersheds and use of a participatory approach.

The report concludes that current focus on developing rural infrastructure, particularly rural roads, needs to be maintained.