t he anxiety on the food front arises from the steep fall in agricultural GDP (-0.2 per cent) during 2009-10, reduced water availability in 81 major reservoirs, fall in agriculture’s contribution to GDP (15.7 per cent), inadequate growth in on-farm employment and the prevailing food inflation.

The output of pulses and oilseeds is stagnating. Though this sector is the backbone of the rural economy, allocation for agriculture in state budgets has been only 5.84 per cent during 2008-09. Growth in irrigated area is slow and groundwater is being over-exploited. Large numbers of farmers (over 40 per cent) want to quit farming. The only redeeming feature is the availability of nearly 47.5 mt of rice and wheat with the government in January 2010.

Pranab Mukherjee, for the first time in recent years, laid out an agricultural road map based on integrated attention to the conservation of the ecological foundations essential for sustainable agriculture, cultivation based on the principles of conservation and climate- resilient farming, consumption with attention to food safety and quality, and farmer-centric commerce. Mukherjee has set aside Rs 100 crore for Mahila Kisan Sashaktikaran Pariyojana. A sum of Rs 200 crore has been provided to Punjab, Haryana and western UP for defending the gains of green revolution. For extending the gains to Bihar, Chhattisgarh, Jharkhand, eastern UP, West Bengal and Orissa, a sum of Rs 400 crore has been provided. Mukherjee has provided Rs 300 crore for organising 60,000 pulses and oilseed villages this year to boost output of oilseeds and pulses.

Mukherjee proposes to raise the credit availability target in rural areas to Rs 375,000 crore. The effective rate of interest for farmers who repay their short-term crop loans as per the schedule will be 5 per cent per annum. I am glad we are progressing towards the target of 4 per cent interest rate proposed by the National Commission on Farmers. There are also proposals for establishing a strong supply chain for perishable farm produce, providing sops for farm mechanisation and establishing facilities for the preservation of perishable commodities and drafting a food security bill.

Opening up of retail trade to large companies needs to be taken up only on the basis of an employment impact analysis. Another vital issue is the impact of the rise in diesel and petrol prices. During 2009, farmers in Punjab and Haryana raised rice production to a level higher than the previous year by resorting to ground water irrigation. They invested heavily in purchasing diesel for pumping water. We have a comfortable reserve of rice today, thanks to their efforts. Unfortunately, irrigation does not find a special mention in the budget speech, although provisions would have been made under Bharat Nirman.

Finally, the finance minister sentiments on post-harvest technology and particularly grain storage must be converted into action without delay. In April-May 2010, the Food Corporation of India and other agencies may have to buy over 20 mt of wheat in northwest India. Even the existing stocks of wheat and rice are not stored properly. It will be sad if we waste foodgrain during a period of high food inflation. Mukherjee’s recipe for agricultural renewal thus involves convergence and synergy among numerous ongoing programmes. The prime minister and the National Development Council must initiate the necessary steps to ensure the success of the road map as soon as possible.