January 07, 2002

    The Union Finance Minister, Shri Yashwant Sinha along with the Ministers of State Shri Balasaheb Vikhe Patil and Shri G.N.Ramachandran, held pre-Budget consultations with agriculturists and agricultural experts, here today. At the outset the Finance Minister stated that providing a major thrust to agriculture and rural development is a high priority of the Government. He emphasized the need for State Governments' consensus on some of the issues for undertaking reforms in agriculture. He felt that freedom of choice to farmers is basic to agricultural progress. Benefits of Green Revolution need to cover more areas particularly the eastern states. Diversification and value addition, management of water resources, environmental sustainability of water use, storage and processing, financing of agriculture, distribution of foodgrains and increase in capital expenditure were vital. Above all, he felt that there is a need for creating an environment in the agri-sector, that would make Indian Agriculture world class.

    Points and views that emerged at the meeting were:

• Private sector invests little in agricultural infrastructure, hence it is the Government that should play a major role in capital formation in rural areas.
• Education and health infrastructure in rural areas continues to be neglected.
• The sugar industry and marketing of sugar should be totally decontrolled.
• Ethanol production for power generations from molasses should be explored.
• At least 1% of the GDP should be allocated for R&D in agriculture, which is only 0.3% of GDP at present.
• There is need for increased focus on production of organic products. A certification agency is required for certification of organic products.
• Greater support is required for integrated crop and pest management.
• National Seeds Policy should be farmer friendly
• Restrictions on seed exports should be removed. Currently is on the negative list.
• Farm machinery should be available at internationally competitive prices. 35% import duty on processing machinery is excessive.
• Bio-gas based electricity in villages and organic farming should be encouraged.

• Farmers need improved access to market information. There is need to set up Agriculture Information System.
• Post harvest technology is inadequate. Quality improvement and value addition is essential.
• For major agriculture commodities, there is need for a separate commodity management system that should look at forecast of demand, supply, world prices and need for imports/exports.
• Agriculture research system needs to be strengthened. This should particularly include market research, which is very important.
• Future trading to be strengthened and expanded.
• Farm products movement should be deregulated.
• Special line of credit for pulses and oilseeds may be provided by NABARD.
• Abolition or amendment of Essential Commodity Act to allow free movement and storage of agricultural products.
• Provides financing for improving Mandi and Haat infrastructure.
• Give attention to plantation crops in the cotext of current decline in prices.
• Promote export of fruits and vegetables.
• The monopolistic character of Agriculture Produce Marketing Centres should be reviewed and these centres should be modernised.
• Partnership between farmers and corporates should be facilitated.
• Review Crop Insurance Scheme to make it more comprehensive.

    Those who participated in the meeting included Prof.Gopal Naik, Dr.R.S.Arora, Shri Venkata Rao Nadagouda, Dr.Y.Shivaji, Dr. B.Mulik, Dr.Punjab Singh, Shri K.B. Jhadav, Shri Y.C. Nanda, Shri G.S. Thind, Prof. K.N. Nag, Shri Ajit Kumar Singh, Shri Sopan Kanchan, Dr. A.G. Silas, Shri S.L. Guru, Shri L.J.J. Rebello and Prof. Samar Dutta.