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Rs 7,503-cr outlay to boost farm sector

G. Srinivasan

NEW DELHI, Nov. 6

THE Working Group on Agricultural infrastructure and marketing for the Tenth Plan (2002-07) has devised ``concrete plans'' for implementation during the five-year span at a proposed outlay of Rs 7,503 crore in a bid to help farm sector realise its full p otential.

Set up by the Planning Commission under the Chairmanship of Dr V. Prakash, Director, Central Food Technological Research Institute, Mysore, the Group conceded that with the increased production of foodgrains likely at 230 million tonnes by the end of the Tenth Plan, increased capacity of warehouses/godowns ought to be created. Since over 60 per cent of the foodgrains are retained by the farmers, special emphasis must be given to increase the capacity of rural godowns.

The concept of ``Rural Grain Bank'' needs to be introduced as the total additional storage capacity required is 77.82 lakh tonnes valued at about Rs 1,259.32 crore which entails allocation of Rs 315 crore as subsidy, it noted. Alongside, there is a need for an integrated system through computerisation so that all the silos and procurement centres are linked for obtaining commodity-wise details in various storage centres and the movement of foodgrains from surplus to deficit areas.

As the carrying cost of the foodgrain stock is becoming prohibitive for the Government as a sole procurement agency, it is proposed to involve private sector in the creation of foodgrains storage facility through ``build-own-operate'' scheme.

On storage of perishables like fruits and vegetables, it is stated that over 30 per cent of fruits and vegetables are wasted due to improper storage facilities. With a targeted production of 235 million tonnes, there is a need to establish additional col d storage facilities/cool storage facilities for potatoes, fruits and vegetables.

Simultaneously, steps are need to rehabilitate and modernise some of the extant cold storages requiring outlays of the order of Rs 2,245 crore. The allocation proposed is Rs 562 crore as subsidy.

Stating that the success scored in the production of different agricultural commodities was bound to suffer a setback if efficient and responsive marketing system is not established, the Group said the agricultural marketing system should be to make far mers and market competent through capacity building, quality as well as delivery systems. Over 7,300 wholesale and terminal markets in the country handle agricultural commodities, it said adding that the existing inadequate infrastructure needs to be str engthened to improve the efficiency of the marketing system.

As large number of transit markets add considerably to handling and transportation costs,the Group felt that these functions could be taken care of by primary rural markets where agricultural business centres equipped with facilities like cold storage, p rocessing, packaging, market information and financial linkages are provided.

The Group said that at present the milk procurement pricing policy in the country is based on the level of fat and milk solid non-fat with no criteria for the bacteriological quality of milk during procurement. This is more important as most of the milk products produced in the country are not able to compete in terms of bacteriological quality. Hence there is an urgent ensure hygienic in milk production, it said.

On agricultural export, the Group favoured the development of the terminal market for exportable commodities with the specialised infrastructure and professional management. A total of 24 such specialised markets have been identified for development wher e India has to play a lead role as a major exporter of crops like Basmati rice, mango, medicinal and aromatic plants as well as spices, particularly pepper, cardamom, ginger, chillies.

Referring to the newly-introduced agri-export zones in this year's Exim Policy, the Group noted that on the basis of export potential of the horticulture product from the specific region, APEDA has identified the possible agri-export zones to be set up i n various States during the Tenth Plan. The estimated investment on developing the infrastructure would be Rs 364 crore, it said.

In the export market, there is a vast opportunity for organically produced agriculture crops and products. In order to exploit the potential, it is necessary to establish norms and protocol for their production as well as specification by domestic agenci es.

The geographical advantage of North Eastern States and other remote regions as well as perennial flood affected areas like Brahmaputra valley/land could be selected for organic farming, it suggested.

For whatever the reasons, India does not have direct access to the final markets in Europe for its agro products where their agri-products are being resold by these countries in all probability at a substantial profit which India is losing.

As such, India needs to gather commercial intelligence on these aspects and requires to build up the requisite capability to penetrate these markets directly, the Group said.