Question : Investment in Agriculture Sector

(a) whether the agricultural growth is lagging behind the targets fixed during the current Five Year Plan period;

(b) if so, the details thereof and the reasons therefor;

(c) the details of investment made to improve the performance of the agriculture sector during each of the last three years and the current year, year-wise;

(d) whether there is any proposal to increase the investment and encourage Public Private Partnership (PPP) in the agriculture sector and if so, the details thereof; and

(e) the comprehensive measures taken by the Government to increase the investments in this sector to achieve the targeted growth rate and improve the condition of farmers in the country?

(a) & (b): The average annual growth rate of agriculture and allied sector during the first four years of current Five Year Plan period(2012-17) has been 1.6 per cent as against the 12th Plan target of 4 per cent per annum.

Average growth rate of agriculture and allied sector during the above period has been low on account of set back in the annual crop production except for 2013-14 due to deficiency in the monsoon rainfall, moisture stress and unfavourable weather, temperature conditions adversely impacting production of Kharif and Rabi Crops.
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(c): The details of investment in terms of Gross Capital Formation (GCF) in agriculture and allied sector during last three years and the current year (at 2011-12 prices) are given as under:

(Rs. In Crore)
Year Investment(GCF) in Agriculture & Allied Sector
Public Private Total
2011-12 35715 238717 274432
2012-13 36078 217230 253308
2013-14 32472 244694 277165
2014-15 36061 220434 256495


(d) & (e): Government has issued a framework for Public Private Partnership for Integrated Agricultural Development (PPPIAD) by using Rashtriya Krishi Vikas Yojana (RKVY) allocations to bring greater association of private sector in agricultural development projects in the States.

As agriculture is a State subject, it is the responsibility of States to take necessary steps for holistic development of agriculture and improve the condition of farmers based on local needs and priorities.

Government has taken several steps for increasing investment in agriculture sector such as enhanced institutional credit to farmers; promotion of scientific warehousing infrastructure for increasing shelf life of agricultural produce; setting up of Agri-tech Infrastructure Fund for making farming competitive and profitable; developing commercial organic farming etc.

Further, under the Rashtriya Krishi Vikas Yojana (RKVY), which is a major scheme for incentivizing States to increase investment in agriculture and allied sectors, 35% of annual outlay has been earmarked for infrastructure and asset development.


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