AP gearing for market-driven farm policy

By T. Lakshmipathi

HYDERABAD, APRIL 30. Andhra Pradesh is gearing up for a market- driven agricultural policy which lays emphasis on consolidation of lands into economically viable holdings through incentives and promoting contract farming through a new legislation.

The draft agricultural policy, got ready by the Cabinet sub- committee headed by the Agriculture Minister, Mr.Vadde Sobhandreeswaa Rao, details the shift to new paradigm which aims at involving corporate houses in promoting agriculture on mutually agreed terms.

The Left parties have criticised this approach, and Prof. D. Narasimha Reddy, Professor of Economics at the University of Hyderabad, has said that ``if these reforms have their way, what is in store for a majority of farming community is not development but destitution''.

But even so, the policy framers believe that the growth rate in agriculture cannot be stepped up unless there is large investments in this sector.

The policy document to be presented to the Chief Minister, Mr.N.Chandrababu Naidu shortly, would then go to the State Cabinet.

Necessary legislative and administrative action is proposed to be completed so as to put the policy in place for implementation from next Kharif season beginning in June 2000, according to official sources.

The basic objective of the new agricultural policy, is to raise and stabilise incomes of the farmers.

It is planned to achieve a higher growth rate of 6 per cent from the present 3.7 per cent.

Rice and groundnut account for more than 40 lakh hectares against the total cropped area of 80 lakh hectares in Kharif season in Andhra Pradesh.

Similarly, in Rabi season, they account for 15 lakh hectares as against the cropped area of 35 lakh hectares. Almost 28 per cent of the gross cropped area and 50 per cent of the area under food crops is under rice cultivation and it accounts for a quarter of the State's agricultural GDP.

But the cause of concern for the Government is the low productivity. The State stands 4th in terms of productivity in rice among States in the country.

It ranks 6th in groundnut, below the national average in pulses and second in maize. Despite the low yields, the State is a leading consumer of pesticides and fertilisers.

About 43 per cent of the gross cropped area is irrigated in Andhra Pradesh compared to the national average of 37.5 per cent.

Milk production constitutes 11 per cent of the agricultural economy and its share is next only to that of rice.

Poultry is another key sector with one third of the country's egg production and 18 per cent of the broiler meat coming from the State.

It is considered a horticultural giant and the growth rate of this sector has been around 10 per cent in the last decade.

The State accounts for 28 per cent of country's mango production, 50 per cent of lime and lemon production, 22 per cent of pineapple production, 7 per cent each of grapes and banana.

Another high growth sector is fisheries which witnessed 10 per cent growth rate in the last decade. It has a 15 per cent share in the marine fish exports.

The policy mandate takes this mixed agricultural scenario into account and the Government proposes to integrate the three sub systems of agricultural production, marketing and processing to attract private investment in agriculture and ago-integrated industries.

An analysis about productivity gaps in the rice, which is grown in 223 farming situations out of the 322 situations identified by the Department of Agriculture recently, reveals that about 51 per cent increase in the productivity could be ensured by bridging the gap and it would result in an additional production of 58 lakh tonnes of rice.

The State will attempt to narrow the gap by correcting the major technological and development constraints.

Rainfed agriculture

The strategies include effective rain water capturing through participatory watershed and earmarking 40 per cent of credit flow to the rain-fed areas.

These are aimed at ensuring improvement in the productivity of dry lands from the existing 0.8 tonnes per hectare to a level of two tonnes per hectare.

But the focus is on agro-industrial integration and related land policies. Consolidation of lands into economically viable holdings is proposed to be achieved through incentives like exemption from registration fee and stamp duties.

Institution of long term leases of degraded public lands for commercial forestry through auction to private sector, giving the present encroachers equity share to the extent of the value of the land, rights to unskilled employment and other participatory benefits are to be evolved.

A new legislation to allot zones to different companies for different crops to promote contract farming and transfer of Government agriculture and horticultural farms to corporate houses, amendment to land ceiling act to exempt acquisition of virgin lands are among the measures proposed.

Certain benefits available on private investment in industrial sector like inclusion of land value in project cost for appraisal by financial institutions, working capital for the first year to be treated as part of the capital cost equity participation by the public sector to promote agro-industrial estates have been recommended in the new policy.

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Section  : Regional
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