SPEECHES / STATEMENTS

PM’s opening remarks at Full Planning Commission Meeting

May 14, 2007, New Delhi

“I have been looking forward to this meeting of the Planning Commission which gives us an opportunity to discuss issues related to agriculture as a prelude to the meeting of the NDC on 29th May.

When our Government came to power in May 2004, we emphasized the importance of reversing the prolonged slowdown in agriculture witnessed after 1996 which in turn had led to growing rural-urban imbalances and also to acute rural distress in some areas. When we met last in October 2006 to finalise the Approach Paper to the XI Plan, while we were ambitious in setting a growth rate of 10% for the economy, we were also aware of the areas of concern. There were concerns regarding the levels of poverty, concerns regarding the poor performance of agriculture, concerns regarding the need to generate employment and the persisting regional disparities. In many ways, these problems are inter-related and if we are able to improve the growth rate of agriculture, we would be mitigating the other problems to some extent. At less than 2%, poor agricultural growth is a cause of rural distress. This meeting has been called with a view to focusing on specific strategies to improve the short term and medium term performance of this vital sector which still continues to support almost 2/3rd of our rural population.

We have already taken a number of initiatives to deal with the problem. These include actions aimed at dealing with the immediate problem of suicide prone districts. We have also launched the National Horticulture Mission, established the National Rainfed Area Authority, the National Fisheries Development Board, and increased the Plan allocation in agriculture. However, these efforts need to be expanded into a broader based strategy for agricultural revitalization.

The Approach to the XI Plan proposed a target of doubling the rate of growth of agriculture from less than 2% between 1996 and 2004 to 4% per annum. This is a key element of the strategy for inclusive growth and we have repeatedly stated that it will not come from following a purely business as usual approach. Recognising this, the NDC, when it approved the Approach Paper last year, also set up a Committee under the chairmanship of the Agriculture Minister Shri Sharad Pawar Ji to present a strategy to achieve this objective.

The NDC Committee has worked diligently on this subject, setting up several sub-Committees chaired by different Chief Ministers. The report of the NDC Committee, which has been circulated, draws on a number of other reports of expert groups and presents a broad agenda of the policy changes needed in agriculture. I would like to congratulate Shri Sharad Pawarji for his leadership in getting the NDC Committee to complete its work in a relatively short time.

We must now use the Committee’s recommendations to outline the agricultural strategy we propose to build into the Eleventh Plan. The Planning Commission has been interacting with the Ministry of Agriculture to come up with the main components of this strategy.

Some of what needs to be done rests with the Central Government but much of it must be done by the States. We know that there are substantial yield gaps in all States - between yields actually achieved at the farm level, and the yields that are feasible given the agro-climatic constraints and the existing technology. These yield increase potentials vary from 40% to 100%. Increased production in the next three or four years can only come from bridging this yield gap or expanding area. As the scope for area expansion is extremely limited except for what can be done through increased cropping intensity via irrigation. Hence, the need to focus on yield gap reduction.

Since agriculture is a State subject, it is important to evolve State level strategies tailored to the specific needs of the agro-climatic conditions prevailing in each state. These State specific strategies must take account of all inter-related actions needed to increase production and productivity in both crop and non-crop areas in a State. The Central Government should devise ways of helping States which are willing to evolve and implement such strategies.

I had directed the Planning Commission to work with the Ministry of Agriculture and come up with specific proposals to promote State specific agricultural strategies and ways of incentivising States to adopt such strategies. I look forward to hearing of the outcome of the discussions in the presentations that will be made in this meeting.

I would only like to emphasise that whatever strategies we choose adopt must deliver some results in the short and medium term so that tangible benefits are visible to the common people, to our farmers, consumers and the rural economy as a whole. This is important if we have to avert any crisis in the agrarian sector and fulfill the needs of a growing economy.

I will not take any more time at this stage and would like to request Sharad Pawarji to initiate the discussion.”