Press Releases[Back]

March 25, 2006
New Delhi

"Higher outlays for rural sector must reflect in better outcomes": PM

The Prime Minister, Dr. Manmohan Singh chaired the first meeting of the newly constituted Agriculture Coordination Committee. The Committee reviewed the performance of the sector and discussed policy priorities for stepping up the rate of growth of agricultural production. The Committee approved the creation of a National Fisheries Development Board, an autonomous publicly funded professional board along the lines of the National Dairy Development Board, to focus on marine and inland fisheries development. The Committee also approved a proposal to create the National Rainfed Area Authority. This authority will focus on investment in rainfed areas, offer institutional and technological support for dryland agriculture, encourage investment in rainwater harvesting and wasteland development.

The Prime Minister said that the UPA Government had effected a steep increase in credit availability to farmers and in budgetary allocations to ministries responsible for agricultural and rural development and rural employment. He emphasized the need to make effective utilization of the resources allocated. The Prime Minister said these funds should be properly spent so that the farmers actually benefit and there is a significant increase in agriculture production and productivity. Dr Singh said the proper utilisation of funds is critical to ensure that higher outlays lead to better outcome. "If productivity and production do not increase we would only be pouring money down the drain. Hence proper utilisation of the allocation that have been provided is critical," he said.

Union agriculture minister, Mr Sharad Pawar said that while foodgrain production had touched 210 million tones in 2005-06, by 2020 India would require 310 million tones foodgrain output. This order of increase will require a package of supportive policies which will have to be implemented not just by the central government but also by State and local governments.

The meeting was attended by Mr Sharad Pawar, minister for agriculture, consumer affairs, food and public distribution, Dr Raghuvansh Prasad Yadav, minister for rural development, Mr Ram Vilas Paswan, minister for fertilizers and chemicals, Mr Saifuddin Soz, minister for water resources, Mr Kapil Sibal, minister for science and technology, Mr Mani Shankar Aiyer, minister for panchayat raj, Mr Subhodh Kant Sahay, minister for food processing industries, Dr Montek Ahluwalia, deputy chairman, planning commission and Dr Abhijit Sen, member (agriculture), planning commission and Dr M S Swaminathan, Chairman, National Commission on Farmers. Principal secretary to Prime Minister, Mr T K A Nair, Union Cabinet Secretary, Mr B K Chaturvedi and other officials also attended the meeting.