India?s grain yield has risen by 10% in the past four years, driving up harvests to record levels, but it still lags the world average, posing challenges for policy makers as well as scientists to scale up production further to match the growing need of a billion-plus population.

?The average productivity of grain inched up to 1,921 kg per hectare in the crop year through June, compared with 1,756 kg a hectare in 2006-07,? minister of state for agriculture Harish Rawat told Parliament in a written reply on Tuesday.

?Higher yield led to the record production level of 241.56 million of grain in 2010-11, up from the estimated demand of 229.12 million tonne,? the minister said.

However, rice yield of 2,178 kg per hectare in India lags the global average of 4,320 kg per hectare, the minister said, quoting the data by the United Nations’ Food & Agriculture Organisation. Wheat productivity stands at 2,907 kg a hectare against the world average of 3,039 kg, and pulse yield of 659 kg per hectare trails the world average of 930 kg, the minister added.

According to industry executives and various independent studies, infrastructure deficit, poor farm practices and lack of adequate mechanisation due to the absence of any worthwhile private sector investment have marred the prospects of farming in the country.

India, the world?s second most-populous nation, heavily depends on agriculture for inclusive growth, as the livelihood of around 60% of its population hinges on farming, and the sector employs more than a half of its working population. However, the share of agriculture and allied sectors in the overall GDP has been shrinking over the years, with the contribution falling to just 14.4% in 2010-11 from around 20% by the end of the last plan period in 2006-07. The sector has grown 3.2% in the first four years of the current Plan period, compared with 2.5% during the last Plan.

Separately, Rawat said the government?s debt waiver scheme, announced during the Budget 2008-09, has benefitted close to three crore of farmers across the country.

So far, the government has released R52,419.88 crore to lenders as reimbursement against the waiver, benefitting 1.04 crore farmers who have taken loans from from public-sector as well as private banks and local area banks, and another 1.89 crore who took advances from regional rural banks and and cooperative banks.

Under the scheme, touted as one of the biggest populist drives by the government with the aim of wooing voters ahead of general elections in 2009, the government waived loans of around R50,000 crore, and sought to provide a one-time settlement relief on overdue loans of R10,000 crore.

Rawat also said as much as 37.60 million hectares of crop areas in various states were insured during 2010-11 against vagaries of nature and other risks, with Rajasthan leading the pack, followed by Madhya Pradesh and Andhra Pradesh.