With a view to promote investment formation in the agriculture sector, industry chambers have suggested a slew of measures.

The Federation of Indian Chambers of Commerce and Industry (Ficci) is of the view that the priority sector lending norms for banks should be appropriately changed to include investments made by corporates in agri market infrastructure such as construction of warehouses, cold chain warehouses in the direct finance category of priority lending.

Amit Mitra, secretary general, Ficci said, ?Agriculture contributes 20% to the national income and provides employment to 60% of the population. Ficci feels that the entire agriculture economy, given the focus of the government, can be transformed from a largesse driven sector to an internationally competitive sector where Indian farmers and agri businesses can become the food suppliers to the consumer of the world?.

Private sector investment in agri-infrastructure should be eligible for 150% weighted deduction as in case with investment in R&D. The same benefit should also be extended in investments made in agri R&D and extension services provided to the farmer.

Ficci feels that Agricultural Produce Marketing Committee (APMC) Acts should be amended at the state level to allow setting up private mandis. It believes that contract farming is important to impart vibrancy to the agriculture sector and attract the much needed investments.

The Centre should therefore set up an empowered committee to resolve the pending issues with regards to the APMC amendments at the state level as also to bring uniformity to laws across the states.

The Associated Chambers of Commerce and Industry of India (Assocham) says that agriculture has not recorded the anticipated growth as it is still less than 3% and the target is that of 4.7%.

DS Rawat, secretary general, Assocham said, ?We want that the agriculture sector should be protected with subsidies in the sense that the fertilizer to farmers are provided at cheaper rates, seeds should be qualitative.?

He added that the irrigation facilities should be created through the Centre because states do not have the funds.