Assocham releases study on 2nd green revolution; sees better growth for AP
India's population was estimated to touch 1.4 billion by 2020 and hence the agricultural sector must grow by 4 per cent each year to support this huge number, according to a study on Second Green Revolution: Role in Transforming Indian Agriculture released by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) at a Global Summit on Green Revolution II: Growth Engine for Transformation in Hyderabad on Tuesday.

"Indian agricultural sector needs to be revamped to meet future demand and nutritional security of this huge population. Next green revolution with a focus on holistic development of agri sector is imperative to support small, marginal farmers in sustaining their livelihood," said Dilip Modi, president, Assocham, at the summit.

"Provision for end-to-end services, solutions to problems faced by farmers and providing a linkage to market is significant to facilitate access to better technology and other resources," added Modi.

Innovations in technology, investments in R&D and revamping of the PDS (Public Distribution System) are some of the suggestions made in the Assocham study.

Introduction to new technologies was required to realise the business potential and employment opportunities in agri sector to boost income from agri sector together with growth and development of the sector, said the study.

The study suggested that investments, particularly in research and development (R&D), would enhance agricultural growth by a great extent and provide over 50 per cent return in research and extension process. Only 0.5 per cent of India's agricultural GDP was invested in R&D.

Investments in agricultural research and development process can be increased through the public-private partnership (PPP) model. A cost-sharing strategy can help minimise the financial woes of R&D in agri sector and encourage various stakeholders like local government, private sector to conduct agricultural research programmes to inform and educate small-marginal, poor farmers about good production, the study suggested.

Such a mechanism would result in enhancing production of goods, services and technologies which could be produced alone by either of the sectors. The PPP would effectively utilise global resources for development of sustainable agri system across India and good researchers for solving agriculture-related problems.

Focussing on the persistent problem of PDS (Public Distribution System), the study said that failed distribution system together with crippled post-harvest infrastructure led to rotting of food grains.

Thus, the next green revolution should focus on ensuring food and nutritional security to the masses especially, people living below poverty line constituting almost 30 per cent of India's aggregate population.

"An inclusive market-oriented approach can revolutionise India's agricultural sector, lure youngsters to take it as a business venture and shun conventional career options and come up with better agricultural practices to improve productivity and quality," said D S Rawat, secretary-general, Assocham.

"Suitable technological advancements is the need of the hour to achieve new breakthroughs in agriculture. Besides, improving farmers' skills will help diversify the sector and minimise risks involved and foster an ecosystem for innovations from within the agri community," added Rawat.

The cropping pattern also needed to undergo transformation and to ensure nutritionally- oriented cropping pattern and production technologies. The government should collaborate with nutrition and agricultural scientists, suggests the ASSOCHAM-ICRISAT study.

Andhra Pradesh Vision 2020

Meanwhile, a Vision 2020 document brought out by ASSOCHAM shows that Andhra Pradesh has the potential to grow at an annual rate of 9 per cent as against the rate of around 5.45 per cent for 2009-10.

Although, agri sector contributes over 25 per cent to Andhra Pradesh's GSDP (Gross State Domestic Product) and 70 per cent of its population is engaged in and dependent on agriculture and allied activities, the sector registered a meagre 1.2 per cent growth in 2008-09.
"Food and agri sector has a strong base in the state and there is plenty of scope for setting up agro-based industries like food processing, sugar and sunflower. The state must promote small-scale, tiny, artisan units to reduce poverty and unemployment through low-capital investment," said Modi.

ASSOCHAM has set a benchmark of 6 per cent annual growth rate in agri sector's contribution to the GSDP crossing Rs 1 lakh crore mark by the end of this decade from levels of around Rs 60,000 crore as in 2008-09. This will require investment worth Rs 1.8 lakh crore until 2020.

The Chamber said that the state government needed to make significant changes to its agriculture policy considering the state was lagging behind its competing states in terms of technological advancement in agri sector. There is dearth of reliable and timely information procedure, lack of information on current prices, trends in various national and international markets, disturbance in demand-supply patterns, scientific forecasting, says the body.