Survey for concerted efforts to achieve 4% agri growth

Concerned over failure to achieve 4% farm growth in the 11th Plan notwithstanding bumper output, the Economic Survey 2011-12 today said comprehensive efforts are needed to achieve the targeted agricultural growth and suggested regular import of food items to check prices.

"During the current Five-Year Plan, the agriculture growth is estimated at 3.28% against the target of 4%...In order to make, 4% agricultural growth a reality, adequate efforts are required to focus on addressing the challenges in this sector," the survey said.

Pointing out yields are still lower than the global level, the report said that long-term growth primarily depends on improvement in yield with limited scope for land expansion.

"We need to address the challenge of the agriculture sector through comprehensive and coordinative efforts directed at improving farm production and productivity of foodgrains as well as high-value crops...," the report said.

To achieve the desired growth, the survey prescribed that focus should be on increasing investment in agri-research, dissemination of technology, provision of farm inputs such as seeds, fertiliser and irrigation, increased credit access and strengthening of market infrastructure.

"Reasonable growth in agriculture is important both from the nutritional point of view as well as control food prices and overall headline inflation," it noted.

The survey felt that improved supply response is critical for ensuring price stability in food items considering the compositional shift in the food basket of a common household.

"As a strategy, regular imports of agricultural commodities in relatively smaller quantities with an upper ceiling on total quantity could be considered," it suggested.

The upper ceiling on imports can be decided annually, relatively well in advance, it added.