India estimated to see 5.4% growth in farm sector in FY11

India is expected to witness 5.4 per cent growth in the farm sector in the current fiscal 2010-11 as indicated by substantial expansion in area and production of major crops in both Kharif and Rabi seasons, official sources said today.

"In the first half of 2010-11, farm sector has achieved growth of 3.8 per cent, rebounding from -0.1 per cent and 0.4 per cent in the previous two years," an official statement said here.

"The full-year growth in the farm sector is estimated to be 5.4 per cent," it added.

In the Annual Report of the Department of Agriculture and Cooperation under Ministry of Agriculture, the department has expressed satisfaction over the growth of investment and capital formation in agriculture in the recent past.

As per the annual report, the total expenditure in the first four years of the XIth plan is estimated to be Rs 44,413 crore, up from Rs 14,952 crore in the entire five-year period of the Xth plan, the statement said.

The Gross Capital formation or investment in agriculture sector related to GDP in this sector has shown substantial rising trend from 15.8 per cent in 2005-06 to 22.3 per cent in 2009-10, it said.

In absolute terms, the capital formation agriculture and allied activities in 2009-10 was over Rs 1.3 lakh crore, it added. As per the Central Statistics Organisations estimates, the share of agriculture in the country's GDP has fallen from 17.4 per cent in 2006-07 to 14.2 per cent in 2010-11. 

The agriculture ministry feels that the falling share of agriculture in GDP is an expected outcome in a fast growing and structurally changing economy.

The focus of the agriculture department in 2010-11 was on mobilising higher investment in agriculture, bridging yield gaps, timely and adequate supply of quality inputs and providing adequate support to the farmers. 

The Rashtriya Krishi Vikas Yojna (RKVY) has succeeded as a catalyst for pulling in more public investments for agriculture and allied sectors. The availability of quality seeds now stands at over 3.21 crore quintal, showing a jump of 2.5 times in the five years, the statement said.

The department has drafted a National Mission on Seeds with a proposed outlay of Rs 3,773 crore for a period of five years starting 2011-12 to boost quality seeds production in the country, the statement said.