Commodity Agriculture Market ought to grow at 5.4 per cent during 2010-11

Commodity Agriculture Market 

The commodity agriculture market is looking bright in the current year with a relative good monsoon and the agriculture commodity sector is expected to grow at 5.4% as per the 2010-11 advance estimates (AE) . There is a marked improvement in the gross capital formation (GCF) also in commodity agriculture sector. This has been observed by the Economic Survey presented in the Lok Sabha today by the Finance Minister Shri Pranab Mukherjee. Underlining the importance of the agricultural sector in the Indian Economy, the Survey says that the agriculture sector needs to grow at 8.5% during 2011-12 to achieve the Plan target of average 4 per cent growth per year.

It was reported that increasing agriculture production and productivity is a necessary condition not only for ensuring national food security but also for sustaining the high levels of growth.

Expressing concern over stagnation of capital investment in the sector, it says both private and public sector should enhance the investment in agriculture sector in a sustained way. A targeted development of rainfed area should be prioritized and effective marketing links should be ensured for better returns to the farmers. The Government should also encourage in food processing, cold chain and handling and packaging of processed food, the Survey says.

Taking a note of declining per capita availability of foodgrains, the Survey suggests thrust on horticulture products. In view of increasing pressure on livestock products due to rising level of income, a long term strategy should be evolved to increase the production of these items. It also says that the issue of efficient food stocks management of and uploading of stocks in time needs urgent attention.