ASSOCHAM seeks farm policy to usher in radical changes

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has sought a long-term farm policy that could radically change the agricultural sector and rural economy.

In a statement here, ASSOCHAM President Swati Piramal said the policy with a three-year outlook should pave way for diversification of current crop patterns and discourage gradually the use of chemicals and pesticides and replace them with environment friendly production boosters. The proposed policy should also promote farmer industry interaction by putting in place efficient supply chains to connect farmers to urban consumers and processing industries, she added.

In addition, it should aim at creating a stake for retail stores in farmer prosperity and introduce drip irrigation facilities and intensify focus in crop diversification patterns and motivate farmers to gradually discard excessive use of chemicals to ensure higher yield with environment friendly materials.

Dr Piramal demanded that in proposed long-term farm policy, enough incentives be provided to farmers to integrate them with animal husbandry and poultry and introduce short term commercial crops comprising floriculture, horticulture, cultivation of herbs and spices for raising rural farm incomes. Agricultural management should become central to moving farming from tradition to a steadily income generating activity in the new long-term policy which should also promote corporate farming, using land as a share and business like farming practices.

According to ASSOCHAM, the new policy should have stipulations so that problems of heavy farm indebtedness is seen in perspective to tackle this problem. Between Fiscal 2000 and 2007, investment in agriculture, as percentage of GDP, has come down from 2.4 to 2.1 per cent. The share of private sector in gross investment in agriculture continues to be above 70 per cent though it has come down from 82.3 to 72.7 per cent. The share of the public sector has been rising sharply, yet at 27.3 per cent it is still inadequate. Also any scheme of loan waiver or similar help should not impact on the private sector credit to farmers, even while preventing their exploitation by moneylenders, as bulk of farmers still depend on private credit sources. The government should tackle this fundamental imbalance of credit in any scheme, intended to prevent widespread farmer distress within a year of its take over, that is before the next Kharif crop planning starts in May 2010.

The ASSOCHAM has also proposed that the government incentive to the private sector in agriculture by treating 150 per cent of investment by private firms in the agricultural infrastructure chain as deductible expenditure. In addition, Dr Piramal also said food processing industry should be recognised as hi-tech industry and the Government should facilitate establishment of Model Agro Processing Centre. Establishment of Model Agro-Processing Centre should be encouraged and developed.

-- (UNI) -- 06BY7.xml

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