Concerned over the sluggish performance of agriculture sector, the Economic Survey hit at food management policies that have led to very high inflation and asked the government to take serious policy initiatives for a targeted four per cent farm sector growth.
Pointing out that farm sector, which is still the mainstay of Indian population, continues to be a cause for concern, the Survey said there is a need for serious policy initiatives to reach the four per cent growth target.
Farm sector growth is estimated to decline by 0.2 per cent in 2009-10.
"It could be argued that the excessive hype about Kharif crop failure, not taking into account the comfortable situation in respect of food crop and the possibility of an improved rabi crop, may have exacerbated inflationary expectations encouraging hoarding and resulting in higher inflation in food items...
"...in the case of sugar, delay in market release of imported raw sugar may have contributed to the overall uncertainty, thereby allowing prices to rise to unacceptably high levels in recent months," the Survey, tabled in Parliament, said.
It called for reversing the decline in private sector investment in agriculture, saying "consistent decline in the share of private sector investment in the agriculture sector is a matter of concern."
Although agriculture provides livelihood to over 60 per cent of India's workforce, it accounts for less than 20 per cent of the country's GDP. PTI
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