Expressing concern over the rising demand-supply gap in food items leading to high food prices, the Economic Survey 2001-11 said the Indian agriculture is at a “crossroads”.
“The agriculture sector in India is at a crossroads, with rising demand for food items and relatively slower supply response in many commodities resulting in frequent spikes in food inflation,” said the Economic Survey 2001-11.
Suggesting a way to deal with the situation, the survey stressed the need for a “second green revolution” with newer technological breakthroughs and higher investments.
Though the survey said the agriculture and allied sectors would register 5.4 per cent growth this fiscal due to a good monsoon, as compared to just 0.4 per cent in, it said the agriculture sector would have to grow at 8.5 per cent next fiscal to achieve the targeted four per cent growth in the 11th Five Year Plan (2007-12).
The survey outlined the special attention that needs to be given to increasing production of nutrition-rich crops like pulses, fruits and vegetables, which remained untouched in the Green Revolution.
The production of food grains declined to 218.11 mt in 2009-10 due to long spells of drought, but is expected to be 232.07 mt in 2010-11. Further, the survey suggested that Indian agriculture should diversify from crop farming to livestock, fisheries, poultry and horticulture.
Suggesting the need for higher farm output, the survey said it is important not only for the country’s food security, but also to sustain high growth. Calling for higher public and private investment in the farm sector, the survey said it is a necessary condition for inclusive growth. Higher investment is required to create infrastructure for transport, storage and distribution of agricultural produce, it added.
The survey said that while overall GDP has grown by an average of 8-62 per cent during the past five years, agricultural sector GDP has increased by only 3.46 per cent. Hence the need to boost the agriculture sector which provides employment to around 58 per cent of the population.