Experts demand farm sector reforms

Our Economic Bureau

New Delhi, Jan 7: Agriculture experts in the pre-Budget meeting with Union finance minister Yashwant Sinha demanded immediate introduction of reforms in the farm sector with adequate marketing strategy, measures for boosting investment and more encouragement for crop diversification. These measures, they stated, would help the agriculture and allied sector to sustain its 7 per cent growth in the 10th Plan.

They pointed out that the government loses around Rs 48,000 crore annually due to existing restrictions and regulations on agro produces.
Former agricultural marketing committee and International Society for Agricultural Marketing chairman Shankerlal Guru demanded immediate repeal of the Essential Commodities Act, 1955, and review of other 27 Acts including the Agriculture Produce (Grading & Marketing) Act, 1937, to allow free trade in agro produces all over the country. He suggested that if it is not possible to immediately repeal the Essential Commodities Act, then it should be kept in abeyance for three years or alternatively the agricultural commodities, which are under liberalised trade agreement, should be removed from the purview of the Act.

Mr Guru said agriculture being a state subject under the Constitution the states are responsible for production. After the crops are harvested, it is the responsibility of the Centre to see that farmers get their remunerative prices. Agriculture after harvesting is no longer a state subject and is then covered under global trade.

He suggested that farm produce marketing committee Acts in various states should be amended to allow direct purchase from farmers without a licence. The government should develop mega markets all over the country to facilitate marketing of produces without any regulations or controls. Mega markets should be set up near ports, airports and production catchment zones.