India's food production expected to exceed the target in 2011-12

Agriculture and Food Processing Industries Minister, Shri Sharad Pawar, has expressed the hope that with record production in kharif and rabi seasons this year, the food production will exceed the target in 2011-12.

The Minister also stated that strategies for rejuvenating agriculture sector have been working well and the targeted 4% growth in agriculture sector would be achieved.

Shri Pawar said this in the Economic Editors’ Conference on 19th October 2011.

The following is the text of the Minister’s address:

“I am very happy to participate in this edition of Economic Editors’ Conference. It is a great opportunity for sharing with you our initiatives, successes and challenges in the field of agriculture and allied sectors. Your valued feedback will be important input to improve implementation of our existing schemes/programmes and to formulate future strategies. My office has already circulated the background note. I, therefore, have decided to limit myself to only the salient and important issues.

You are all aware that foodgrain production has reached a record level of 241.6 million tonne in 2010-11. We have also achieved highest ever production of wheat, pulses, oil seeds and cotton. Overall farm output has also achieved an impressive growth rate of 7.5% during the last quarter of 2010-11 thus helping Agriculture GDP to register a growth of 6.6 % during the year. This also makes average growth rate in current plan to be 3.2% which we could achieve under some of the worst climatic conditions like drought, un-seasonal rains, flood, frost etc. in recent past.

Monsoon 2011 has been very encouraging and our production outlook too. As per 1st Advance Estimates, Kharif 2011 production of Rice in the country is estimated at 87.10 million tonnes which will be an all time high. We are also expecting record productions in Cotton and Oilseeds this year. We hope to see a substantial expansion in crop area and to achieving record production in coming Rabi season too. We are confident that we will be able to surpass our own production record set last year.

All these give me great optimism that strategies for rejuvenating agriculture sector have been working well and we will now be able to achieve targeted 4% growth.

While the results are encouraging, we also have challenges ahead. Demand of food grain will grow rapidly in next few decades not only due to growing population but also due to rise in per capita income and various governmental interventions to ensure food and nutritional security to less advantaged people.

We have to produce more for ensuring food and nutritional security of our nation. But, this will be achieved with more competitive demand on land and water, progressive fragmentation of land holdings, degrading natural resource base and emerging concerns of climate change.

We know that increase in agricultural production would have to emanate only by enhancement in farm productivity from existing cultivated area. We have concentrated on enhancing production and productivity both by bringing in high yielding varieties, hybrids and efficient farm equipments. For this we need more investments in this sector.

We have, over last few years, been able to ensure higher investments both private and public. Gross Capital Formation (GCF) as percentage of agricultural GDP clocked 18.7% during first three years of current plan, which is significantly higher compared to 12.5% during whole of tenth plan. Simultaneously, we have been able to enhance Plan outlay substantially to reach Rs. 21, 530 crore in 2011-12.

Rashtriya Krishi Vikas Yojana (RKVY), launched in August 2007, has become the principal instrument for increasing the States’ investment in this sector. Outlay under RKVY has been substantially increased to Rs. 7,810 crore in 2011-12, which now includes several commodity specific measures namely ‘Bringing Green Revolution to the Eastern Region of India”, ‘Special Initiative for Pulses and Oilseeds’, ‘Accelerating Fodder production’, ‘Creating Vegetable Clusters’, ‘Nutri-Cereals’, ‘Oil Palm development’ etc.

Alongwith RKVY, National Food Security Mission (NFSM) has also emerged as another path breaking intervention. I take pride to mention that NFSM has already accomplished its target of producing additional production of 20 million tons within 4 years of its implementation.

With successful implementation of MGNREGA and other anti poverty programme of the Government, there is now pressure on availability of farm labour. While we are attempting to innovatively utilise MGNREGA for augmenting activities that directly add to farm productivity; for compensating scarcity of labour, I am proposing a large programme for agricultural mechanisation during 12th Plan.

Agriculture Credit plays an important role in improving agricultural production, productivity and mitigating both climatic and non-climatic risks. Our concerted effort has seen surpassing credit flow target in 2010-11 by about 19%. We are hopeful to surpass target in this year too. Similarly, price signals are an extremely effective tool for increasing agricultural production and productivity. Government has been upwardly revising MSP of major crops such as paddy, wheat and pulses at regular interval for incentivising farmers to produce more.

We all know that Animal Husbandry, Dairying and Fisheries plays significant role in supplementing incomes and generating gainful employment in the rural areas, particularly among the landless labourers, small and marginal farmers and women. It also acts as an insurance against vagaries of nature like drought, famine and other natural calamities. For sustaining growth and enhancing productivity in this sector, ICAR has initiated several special efforts namely establishment of elite herds of important buffalo breeds, diagnostic kit ‘DIVA’ for differentiating Foot and Mouth Disease Infected and vaccinated animals, characterisation of new goat breeds etc.

As a result, India continues to be the largest producer of milk in the World. Small, marginal farmers and landless labourers are majority producers of milk in India. To ensure a steady market and remunerative prices for them, about 14.08 million farmers have been brought under the ambit of about 1.35 lakhs village level dairy cooperative societies in the country.

Food processing industry is now increasingly being seen as a potential source for driving rural economy towards prosperity by brining increased farm gate prices and reduced wastages. During current plan, we are giving special emphasis on developing Infrastructure for food processing. So far projects for 15 Mega Food Parks, 49 Cold Chain and 10 Abattoir are already approved by the Ministry. Besides special focus is being given for capacity building, R&D, quality assurance and skill development with selective but active collaboration with established foreign universities etc. I take pride to inform you that Indian Institute of Crop Processing Technology (IICPT) has been fully functional for the last three years and National Institute for Food Technology and Entrepreneurship Management (NIFTEM) is coming up fast on the outskirts of Delhi at Kundli.

With a large diversified production base, coupled with modern technology and low manpower cost, the Indian food processing sector is poised for growth.

Future of Indian agriculture would be technology driven; whether be in Biotechnology or efficient mechanisation or use of remote sensing tools. ICAR through National Initiatives on Climate Resilient Agriculture (NICRA) has been creating synergy with other ongoing research projects. Its National Agricultural Innovation Project (NAIP) is helping to foster and strengthen partnerships with stakeholders’ including in Private Sector for ensuring sustainable development of Indian agriculture.

ICAR is gradually becoming a one stop destination for innovative agro-industry and entrepreneurship. AGRINDIA has been established for promoting spread and commercialisation of R&D Outcome, protecting Intellectual Property Rights (IPR) and forging partnership with Industries. A range of other business incubation and promotion efforts are helping rural youths, budding entrepreneurs and Industries.

I would like to conclude by saying that for the whole world and for developing nations in particular, development in its truest sense can only take place when economic growth fosters social equity. For this to happen we have to keep agriculture in the forefront of our nation’s developmental effort.”