Panel favours overseas farm investment

A high-level working group on agricultural production constituted by the Prime Minister has favoured overseas direct investment (ODI) by Indian companies in the sector.

Headed by the Haryana chief minister – it also has the CMs of West Bengal, Bihar and Punjab on it, apart from experts – it has recommended this for boosting production of crops, especially pulses and oilseeds. This is an interim view; the panel, named in May, is yet to give a report.

The panel was appointed after a set of recommendations made by a sub-committee formed by the Union ministry of agriculture; the ongoing working group is sifting all these earlier suggestions. According to the earlier recommendation, Indian companies may be allowed to invest and buy land in countries such as Canada, Myanmar, Australia and Argentina for producing pulses under long-term leases from government-canalising agencies.

Similarly, it said these companies could also buy land in the Asean (Association of Southeast Asian Nations) bloc for securing a supply of oilseeds.

Official sources said if such arrangements could be made for crude oil, the same could be considered for food crops. As an alternative arrangement, the committee has suggested the Indian government and private agencies could enter into a long-term supply contract with farming bodies or trading companies in foreign countries to enhance production of crops.

“At present, pulses and oil seeds are the main concerns, as production is short of the total demand. We are importing these crops and every year, a higher minimum support price is triggering a higher retail price for these crops. Our aim is to secure at least two million tonnes of pulses and five million tonnes of edible oil in the domestic market for 15-20 years,” explained the source.

The report has further highlighted that pulses and oilseeds present the biggest challenges in India. Domestic production is short by about 25 per cent for pulses and about 50 per cent for oilseeds, compared to the overall domestic demand. According to a recent estimate, these two commodities cost the country Rs 30,000-40,000 crore in annual imports.

All districts of states under the Accelerated Pulses Production Programme have been included under the National Food Security Mission in the remaining period of the 11th five-year plan.