Paper - Agenda for Liberalisation of Agriculture

B.H. Jain, Chairman,
Jain Irrigation Systems Limited, Jalgaon

Abstract

Indian agriculture has experienced rapid change in production technology, registering 3.5% average annual growth rate covering 30% of the GDP and 20% of India’s exports. Sixty five percent of the population is directly or indirectly engaged in agriculture. It is estimated that in the next ten years, agriculture will need an investment of Rs. 140,000 crores. To invest such a high capital, we have to rope in foreign investors in agriculture. Reform policies implemented since 1991 have largely bypassed agriculture. In order to speed up, urgent steps should be taken to put agriculture in concurrent list, expedite implementation of long term agricultural policy, enact suitable legislation for contract farming, liberalise land ceiling act to include corporate farming atleast on wastelands. In such corporate farm, water harvesting and watershed management should be followed to create its own water resource for irrigation. A judicious cropping pattern should be followed.

Foreign investments / participation in food processing industry should be encouraged. Food legislation should be suitably amended to encourage quality consciousness. Greater coordination amongst seed companies, farmers, cooperatives, Research Institutes, food processors and the Government should be ensured to produce quality products and the exploitation by intermediaries should be checked by reducing the levels in distribution chain and ensuring better remunerative returns to the farmers. The untapped natural advantages like climate, irrigated arable land, low cost skilled, scientific and technical manpower should be exploited and investment for value addition should be encouraged. Plant genetics improvement, biotechnology and modern methods of water management using drip irrigation should be employed to increase the overall productivity per unit of land, water and capital used.

The paper emphaises that increase in yield of raw material, improvement in quality of processed products are possible only if investments in pre and post harvest technologies, packaging, transportation and cold storage chains, green houses, food processing industry and export of fresh fruits, vegetables, flowers are encouraged and the market both domestic and export should be freed as much as feasible. The need for improving the standard and management of agriculture education in the country is also stressed.