States Okay 4.5% Farm Growth Target In 9th Plan
A meeting of state agriculture ministers yesterday endorsed the Planning Commissions proposal to peg annual agricultural growth target for the 9th plan at 4.5 per cent. This is about one per cent higher than the expected actual 8th plan growth of 3.5 per cent. The foodgrain output is estimated to have grown at around 3 per cent a year during the plan period.
The ministers broadly endorsed the revised draft of the national agriculture policy prepared by the United Front government.
They, however, demanded that import duty on agro-products, especially edible oils and hops, should be suitably raised to protect the interest of domestic growers and to provide them an incentive to strive for increased production.
Other demands made by the agriculture ministers include measures to meet short- and long-term credit needs of farmers, greater say for states in pricing policies for the industrial and manufacturing sectors in addition to agriculture, and the expansion of crop insurance scheme.
The opinion was, however, divided over the transfer of centrally-sponsored development projects to the states.
Briefing newspersons, agriculture minister Chaturanan Mishra said concrete state-wise plans to meet the target of 4.5 per cent growth would be finalised in consultation with states. The first meeting in this series would be held today with the agriculture ministers of north-eastern states. This region has its own peculiar problems which required a special strategy.
Reacting to the states demand for raising import duty on edible oils and some other items, Mishra said he had already written to the finance ministry to increase this duty from the present 20 per cent to 30 per cent. The import duty was reduced last year to augment domestic supply. But the resultant fall in prices proved a disincentive for local oilseed growers. He, however, did not concede the oil industrys demand for duty-free import of oilseeds to improve their capacity utilisation.
Mishra said the centre would meet the states demand for expansion and revamp of crop insurance scheme. The agriculture ministrys note on this subject was almost ready and would be sent to the cabinet for approval.
The draft agricultural policy would also now be sent for cabinet approval after incorporating some of the suggestions made by states at the meeting, he said.
Gowda referred to the ambitious ninth plan growth target in his inaugural address and expressed the hope that the sector would get substantial private investment to achieve it. Gowda observed that the gap in the growth of agriculture and non-agriculture sector had widened over the years.