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Agri needs attention of govt after fall in Kharif yield, says ASSOCHAM
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Tuesday, 12 December, 2017, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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If there is one sector which needs the government’s attention and the topmost priority in the forthcoming Budget, it is agriculture. India has seen a major setback in Kharif production, leading to the overall laggard growth of the farm sector in the country’s gross domestic product (GDP) performance for the second quarter of the current fiscal. This was stated by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
While the year-to-year agriculture gross value addition (GVA) growth for the second quarter of 2017-18 (i e for the period between July and September 2017) dropped to 1.7 per cent from 4.1 per cent, measured on basic prices, the fall looks quite sharp at current prices from 10 per cent to 3.7 per cent.
It is attributed to a decline in foodgrain production by 2.8 per cent in the second quarter of the current fiscal from a handsome growth of 10.7 per cent in the corresponding period of 2016-17.
“Surely, the shortfall in the second leg of the monsoon seems to have its impact on the kharif production. Besides, distress in prices of several agri commodities would have also played a role in lower realisations, as seen in the growth deceleration on the current prices,” the chamber said.
D S Rawat, its secretary general, said since more than half of the GVA in the farm sector was contributed by livestock, fishery and forestry, finance minister Arun Jaitley should particularly focus on these segments of the economy, along with a major thrust on agriculture infrastructure like irrigation.
“With bulk of our population employed in the rural landscape, India’s consumption led growth and investment cannot be realised unless the entire farm sector is pulled out of stress,” he added.
“A major part of India Inc is heavily dependent on rural demand, which would remain subdued if immediate steps are not taken in the short and medium term,” Rawat said.
“In the near term, the farmers must be extended all help in the ongoing rabi season, and it must be ensured that adequate protection is given to them if market distortions creep in to their disadvantage,” he added.
“Timing is very important in agriculture, and steps like import duty or export measures must be initiated well in time, so that the benefits reach the farmers and are not pocketed by the intermediaries,” Rawat stated.
The rural-oriented companies in fertilisers, seeds, farm equipment, two-wheelers, fast-moving consumer goods (FMCG) and food processing would be vulnerable if the agriculture sector did not perform as well as other sectors.
“The argument that the lower growth in agriculture has come about on a high base of the previous year should not be a matter of consolation. If that situation is allowed, it shows how serious the issues with our farm productivity are,” the Chamber said.
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