Pvt sec participation needed to raise agri production: Assocham

Industry body Assocham today said private sector should participate in increasing agriculture production and its share in the country's economy.

India is aiming at four% annual growth in agriculture production over the next five years.

"Contract farming by private sector, adoption of (modern) technologies and protection of bio-diversity are crucial to develop agriculture infrastructure and propel economic growth in the country," the chamber said.

It said that farmers can group together by pooling in resources and then collaborate with corporates.

Storage capacities through private entrepreneurs and warehousing corporations must be encouraged on a fast-track basis, it added.

Prime Minister Manmohan Singh recently voiced concern over paucity of resources to step up growth and called for greater participation of private sector in scaling up economic development during the 12th Five Year Plan (2012-17), it said.

Agriculture Minister Sharad Pawar had also underlined the importance of private sector for accelerating farm growth.

Production and distribution bottlenecks need to be removed for items like fruits, vegetables, milk, poultry and fish through enforcing a reformed Agriculture Produce Marketing Act, the chamber said.

"Inefficient agro-marketing channels have been a cause of high inflation in the country. The corporate sector has capital and skills to plan, manage and supervise so that due benefits percolate to the farming community," Assocham added.

The agriculture sector accounts for 14% of the country's total GDP.