Capital Investment To Increase Foodgrain Production

Owing to the shortage of foodgrains in the country, Minister of Consumer Affairs, Food and Public Distribution, Prof. K.V. Thomas has called for capital investment in agriculture by public and private participation to increase agricultural productivity, a key challenge for ensuring national food security. He has said that the investment is specially required in the eastern and north-eastern regions, where agriculture sector has a great potential.

Addressing the Agriculture Leadership Summit 2011 on the 14^th of Sept., Prof. Thomas said that a ‘Mission Mode Program’ should also be taken up on priority basis to exploit the potential of existing ‘yield gaps’ and a sound mechanism should be developed to link farmers to markets which is a pre-requisite for augmenting farm production and farmers’ income.

To make you all understand, what the Minister of Consumer Affairs, Food and Public Distribution said we at PDS Gaya is putting up the full text of the speech on our blog.

Full text of the Minister’s speech is as follows

"India has made great strides in increasing food grain production since the Green Revolution era of the mid-sixties. During the last one decade, production of maize and cotton has doubled. In the recent past, the growth rates in horticulture, livestock and fishery sectors have been impressive and have significantly contributed towards agricultural gross domestic product. Nevertheless, the declining total factor productivity, diminishing and degrading natural resources and stagnating farm incomes have become major concerns. The impact of trade liberalization on agriculture and the global climate change are new challenges. At the same time, new opportunities are emerging for agriculture sector in our country. Commercialization of agriculture, diversification towards high-value commodities and integration with the global markets are the new opportunities.

The first and foremost issue is conservation and enhancement of ecological foundations for sustainable agriculture. Urbanization is exerting tremendous pressure on available land and water resources. There has been a significant development in small farm management in respect of all the sub-sectors, i.e., crops, animal husbandry and fisheries. This process requires to be encouraged to provide ‘the power of mass production by the mass of small farmers’.

Orientation of agricultural development should shift from increasing production to raising farm income. This is important to check the widening rural-urban disparity and to diversify rural livelihood options, covering crop, livestock, fisheries and horticultural activities. Hence, the task to link farmers with the market must be taken on top priority.

The issues related to investment and subsidies, natural resource conservation, current global financial crisis, agricultural diversification and possible approach for sustainable agriculture need to be addressed on priority basis.

The livestock sector, which can play a vital role in supplementing farm incomes, creating rural employment, addressing gender equity and increase rural livelihood options needs more attention.

I may like to suggest the following steps

Increasing agricultural productivity is a key challenge for ensuring national food security. To increase production, exploiting the potential of existing yield gaps offers a tremendous opportunity. Hence, a Mission Mode Program on “Bridging the Productivity Gap” with real missionary zeal and effective monitoring is required to be launched with meticulous planning as a matter of priority.

Rainfed areas have a huge potentiality to raise production and increase farm income. These grey areas can soon be made green to harness a second green revolution. Role of technologies, policies and infrastructure would be very important in realizing the potential of rainfed agriculture.

Linking farmers to markets is a pre-requisite for augmenting farm production and farmers’ income. Role of innovative institutions would be critical in this context to reap the benefits of emerging opportunities. A silent revolution of innovative institutions is already taking place in the Indian agricultural production and marketing system.

There is a dire need to attract the capital investment in agriculture by public and private participations in the non-green revolution regions, particularly in the eastern and north-eastern India, where agriculture sector has a great potential. Hence, investment priorities must now be oriented towards realistic growth of agriculture for meeting the growing needs of the population.

Agriculture is confronted with new forms of risks and uncertainties. These are related to natural calamities, global climate change, use of food for bio-fuels, uncertainty over prices etc. Role of knowledge system and institutional mechanisms for input supply, credit, crop and livestock insurance etc. would be important in reducing both risks and uncertainties in order to attain the much needed resilience in agriculture sector.

Climate change has added a new dimension to future agricultural growth, which is a major concern. The worst affected would be small farm holders located in the marginal and under-privileged areas. Therefore, investment options for both adaptation and mitigation and policies, which can help in reducing the impact of climate change are urgently needed at this stage.

There is an urgent need for agricultural diversification by identifying the key crops/commodities which can help small farm holders to raise their income. Incremental gains in income through diversification will help capital formation which will be instrumental in attaining higher productivity and profitability.

Globalization of agriculture offers immense opportunities for export of agricultural products. This can be harnessed only by increased efficiency in our production systems, improved quality of produce, value addition, market intelligence and long term well targeted export policies and planning, supported an enabling environment both within and outside the country. An institutional mechanism, with emphasis on a single window system, would catalyze the whole process of agricultural exports from India, for which tremendous opportunities exist but have not been tapped presently.

I am sure that the 4th Agriculture Leadership Summit 2011 on the theme of Policy Reforms for Farm Growth will be able to address the issues of productivity, environmental challenges, land and subsidies reforms, food security and all other related issues that our farmers and agriculture sector faces today, and would come out with the recommendations for Government to consider addressing the challenges to the agriculture sector.”

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(Inputs taken from Press Information Bureau, GOI website)