Grain output in 2007-08 hits record 227 mt
Despite pessimism about the growth in the agriculture sector, India has achieved a record foodgrain production of 227 million tonne in 2007-08.
With an addition of two to three million tonne during the rabi season, it would touch 230 million tonne, which certainly would be a milestone in foodgrain production,agriculture secretary PK Mishra said.
There seemed to be a revival in the sector, as 4-4.23% growth has been recorded for the last two years, compared to 2% from 1994 to 2004, he said.
The growth was not only in foodgrain, but also in cotton and sugarcane over the last two years, which has to be sustained for another three to five years, Mr Mishra, said while inaugurating a two-day ���stakeholders��� workshop on supply chain management on agricultural commodities.���
Production in horticulture sector was also expected to be doubled by the end of the 11th plan period, he said and cautioned that this growth would definitely throw up new and complex challenges of finding suitable markets for the surpluses and strengthening/development of supply chains to avail tangible benefits out of this development.
The farmers get only a minor share of final price paid by consumers due to a long value chain, which is lower in the case of fruits and vegetables "we need to shorten those long value chains and encourage their vertical integration and consolidation for ensuring a remunerative price to our farmers," Mr Mishra said.
The sector, more than anything else, needed well functioning markets to drive growth, employment and economic prosperity in rural areas of the country, he said.
In order to provide dynamism and efficiency to the marketing system, large investments were required for the development of post harvest and cold chain infrastructure nearer to the farmers��� field, he said. Besides, enabling policies need to be put in place to encourage procurement of agricultural commodities directly from field and to establish effective linkage between farm production and the retail chain and food processing industries.
A set of draft rules prepared by the ministry have been circulated to the states last November, in order to help them move forward in completing the reforms, he said, adding, a favourable regulatory environment was attracting the interest of several large corporates into agri-business activities.
Evolution of integrated supply chains of agricultural commodities, specially that of perishables, was a key driver for achieving highest growth in agriculture. Market-driven production was the order of the day and an efficient and seamless supply chain management has become a necessity for India.
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