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5 mins ago
Agriculture and allied sectors in the country have grown at an annual average rate of 3.2 per cent during the first four years of the Eleventh Five Y ear Plan, (2007-08 to 2010-11), against the targeted four percent for the whole Plan period, a Domain-B report said. The shortfall in projected output has been attributed to severe drought conditions in most parts of the country during 2009-10 and drought-deficient rainfall in some states such as Bihar, Jharkhand, East UP and West Bengal in 2010-11, said the report. However, low level of investment in agriculture sector is also one of the underlying factors for slow growth, according to minister of state for agriculture and food processing industries Harish Rawat. However, the minister said, investment in agriculture and allied sectors as a percentage of the agriculture sector gross domestic product (GDP) increased to 20.3 per cent in 2009-10 (at constant prices) from 13.5 per cent in 2004-05. The annual plan allocation for the agriculture sector has increased to Rs17,122.87 crore in 2011-12 (budget estimates) from Rs7,058.50 crore in 2007-08 (actual). Further, the flow of agricultural credit has also increased considerably and is targeted to rise to Rs4,75,000 crore in 2011-12. Besides, the government has increased the minimum support prices of crops. Several
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7/19/12
schemes are also being implemented with a view to increase public investment in agriculture and allied sectors so as to increase farm growth rate in the country, the minister stated in a written reply.The government, meanwhile, also introduced a nutrientbased subsidy policy to make chemical fertilisers affordable for farmers. The nutrientbased subsidy policy being implemented from 1 April 2010, aims at providing wider variety of fertilisers at affordable prices to farmers. Since the maximum retail price is left open to be fixed by the manufacture/importers at reasonable levels, the nutrient based subsidy policy is expected to promote competitive pricing, he said. The availability of increased varieties of fertilisers at reasonable prices and encouragement to balanced fertilization are expected to increase production and productivity in due course of time, he added.
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