In 80s, the annual growth rate in agricultural production had been 3.54 per cent.

The Survey noted that the decline in foodgrain production in 1997-98 to 192.4 million tonne from a peak level of 199.4 million tonne in 1996-97 is, to some extent, offset by higher output of 195.2 million tonne expected in 1998-99. However, viewed against the decline in the growth rate by 3.5 per cent in the preceding year, the current year's performance is only a modest recovery.

It may be recalled, the target for total foodgrains production in 1998-99 was finally revised at 204 million tonne after the Union agriculture ministry rejected the Planning Commission's target for the year at 210 million tonne. The ministry revised the target after provisionally fixing earlier at 207 million tonne andlater at 205 million tonne. Being frustrated at the current year's kharif production, the only hope now pins on a bumper rabi crop output to enable to achieve the set target.The Survey suggested that the crop productivity levels should be enhanced particularly in Bihar, Orissa and eastern UP where higher investment in rural infrastructure by way of improved water conservation and delivery system, fertiliser use and credit availability should receive special focus.

Though the existing market regulation was geared up to handle only foodgrains and there was little effort towards developing market infrastructure for bulk sale of fruits and vegetables. Seasonal and, often very sharp decline in prices of some of vegetables, particularly potato and onions and occasional sharp rise in their prices during the lean season, testified the imperfection of market mechanism for perishable agricultural commodities, the Survey stated and suggested that cold chain storage and refrigerated transportation up to the large urbanconsuming centres would require special attention.

As the marketing of fruits and vegetables has received little attention so far, there is reason to believe that there is much larger gap between the producer price and the consumer price due to large number of intermediaries operating in unregulated and unsupervised vegetable and fruit markets. During the period January 1997 to February 1998, market intervention was resorted to for 13 agricultural produces in various parts of the country through the nodal agency Nafed.

The Government would have to play a leading role in establishing appropriate infrastructure for storage and processing. Policies should also promote development of marketing infrastructure and integration of markets within and between states.

Though the previous year's Economic Survey cautioned the Government on the need for special efforts at supply management in order to offset the possible shortfall in production, in the period July-November, 1998 was dominated by high price rise ofonions and potatoes, more particularly in north India.