CII Communique - February, 2010

agriculture
Government Agency’s Perspective: Single window
clearance, one-stop solution, clear delivery of
responsibility, better coordination, superior scrutiny,
and avoiding duplication of staff and work.
Agribusiness Company’s Perspective: Wider window of
product availability, cost efficiency, consistent quality with
control over product specifications, improved product
shelf life, better interaction with growers, goodwill of
farmers
Agriculture Marketing
Efficient agricultural marketing is essential for the
development of the agriculture sector, as it provides
outlets and incentives for increased production.
Agriculture being a State subject, it is the responsibility
of the respective State Governments to take necessary
steps for reforming marketing structure. To improve
marketing systems and market infrastructure,
interventions are required in the following areas:
• Amendment of the State APMC Acts in line with the
Model Act
• Legislate private buying: Need to allow direct buying
from farmers without the requirement of any license
• Plan resources for agricultural marketing should be
made available only to the States that have undertaken
substantial reforms
• Giving industry status to Agri Marketing
• Agri- products should be zero-rated for GST
• The Government needs to focus on F&V, Livestock
and Fisheries (which form 49% of agriculture) to propel
agriculture, in which tax is minimum, wastages are high,
and we have comparative advantage. So in case there is
a problem in making Agri-marketing free for all products
(grains etc.) a beginning can be made for F&V.
Food Security for Longterm Competitiveness
The following initiatives are suggested:
• An urgent need is to revamp the MSP policy and
make it more market oriented. The objective of food
security should be re-engineered by a different food
pricing regime than by the MSP.
• Policy initiatives are required to enhance food grain
availability by broadening the base of procurement.
• Food grains should be given through food vouchers
rather than PDS, and biometric cards should be issued
to BPL families to prevent leakage.
• Issues related to the role of FCI, as also shifting the
cereal basket to the water abundant eastern region of
the country, need to be mentioned.
• Remove restriction on the movement of all agri
commodities all over India and allow future trading of
wheat, rice, and corn as well as open export of common
rice, wheat and corn.
Others
• In the Fertiliser Sector
– Decontrol the industry
– Nutrient-based subsidy with an open MRP, till
total decontrol
– Farmers should have choice to get quality
diversified fertilizer products
• Ask for incentives to use the Eastern part of the
country for food security. The Private Sector should
be allowed to procure from the East, where FCI is not
operating.
• To address the issues of land fragmentation, it is
required to develop and implement a ‘Model’ Land
Leasing Act which can be adopted by State Governments
for providing agricultural land on long term leases to
medium large farmers and the private sector, without
alienating the owner from the land.
• Palm oil to be declared as a plantation crop: this
can help save Forex.
• Any category of fruit crop with a cycle of 12 months
should be declared as a plantation crop.
26 | February 2010 Communiqué