Ficci suggests agri-policy reforms

NEW DELHI: Ficci apprises the new government on the priority areas for agri-policy reforms during a meeting with minister for agriculture, food & civil supplies, consumer affairs & public distribution Sharad Pawar on Monday.
At the meeting PM Sinha, chairman of the FICCI Task Force on Agriculture made a presentation on "Priority Areas for Agri Policy Reforms and Investments including Irrigation Projects".
At the meeting, Ficci president YK Modi and PM Sinha offered suggestions on areas of public-private partnership in agriculture and allied industries and reforms to promote processed food industry with backward linkage to the farmers.
Ficci Task Force on Agriculture suggested that to achieve 8% GDP growth, agriculture would need to grow at least at 4% per annum.
This will require large investments as unfortunately over the last few Five Year Plans the share of agriculture and allied sectors in plan investments has declined.
There is need for public investment of over Rs 1,00,000 crore in agriculture and allied sectors during the 10th five-year plan, up from Rs 58,933 crore provided in the plan. An enabling environment could attract another Rs 2,00,000 crore from the private sector.

A suggestion was made to abolish APMC, the Essential Commodities Act and the Mandi Tax immediately, enabling the farmer and food processors, free to access the market without going through intermediaries. Contract farming with necessary legislation needs to be encouraged.
To promote processed food industries, it was suggested that there is urgent need to integrate multiple food laws, currently being administered by nine ministries, and only one ministry should administer laws, revised to be in line with the best international practices.
Setting up warehouses close to farms and introducing the warehouse receipt system, was also suggested by Ficci. This will ensure that the farmer receives 70% of the price of his crop when he stocks his produce in the godown, balance to be given when he decides to sell based on price as posted daily by Agri Forward Market Commission.
Facilitation of food retail supply chain, including entry of FDI, as most large chains have backward linkage with farmers was also among the suggestions made.
In the area of infrastructure, it was suggested encouraging both public and private sector to invest in cold storages, dehumidified and controlled temperature warehouses, and refrigerated and insulated transport facilities. Ficci recommended public, private partnership in agri R&D, on the lines of the current CSIR model.
The Ficci Task Force on Agriculture suggested early completion of nearly 400 incomplete irrigation projects, languishing for 15 years, which would cover 21.5 million hectares, and investment in minor irrigation programmes, including optimal use of water through micro/ sprinkler/ drip irrigation systems.
Reclamation of 24 million hectares of wasteland categorised as cultivable should be undertaken by incentivising the private sector.