(a) whether any study has been conducted to understand the capital formation trends in the agriculture sector;
(b) if so, the details thereof;
(c) whether the lead indicators representing the capital formation in agriculture sector match the other sectors of the economy;
(d) if so, the details thereof; and
(e) if not, the steps taken to encourage the capital formation trends in agriculture sector?
MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF STATE IN THE
MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (PROF. K.V. THOMAS)
(a) & (b): A Committee on Capital Formation in Agriculture under the
Chairmanship of Prof. B.B. Bhattacharya was constituted to identify the components
of capital formation which are meant for use exclusively in agriculture and the
allied sectors and those which predominantly impact on agriculture, such as
rural electrification, rural roads, construction of market yards, storage
facilities, expenditure on agricultural research and development etc., to
recommend a procedure for apportioning capital formation into agriculture
and non-agriculture sectors, to suggest improvements in the estimation procedure,
to examine the contribution of public sector in agriculture capital formation and
to suggest a mechanism to be set up in the Ministry of Agriculture for periodic
collection and publication of data on agriculture capital formation etc.
(c) to (e): For estimation of capital formation in agriculture as well as all
other sectors, the major component is Gross Fixed Capital Formation (GFCF). During
2007-08, GFCF in agriculture and allied sectors and all other sectors are Rs. 109021
crore and Rs. 1496418 crore respectively.
Government has launched several schemes to increase investments in agricultural
sector and to encourage private investment. The major schemes are as follows:
# Rashtriya Krishi Vikas Yojana to incentivise the states to increase public
investment in Agriculture sector.
# National Food Security Mission to promote improved production technologies
like hybrids, System of Rice Intensification, resource conservation technologies,
integrated nutrient, pest and weed management and usage of farm implements.
# Gramin Bhandaran Yojana for investment by private sector for the development
of agriculture storage infrastructure in the country.
# Development and Strengthening of Infrastructure Facilities for Production and
Distribution of Quality Seed to develop and strengthen the existing infrastructure
for the production and distribution of certified /quality seeds to farmers.
# National Horticulture Mission for holistic development of horticulture sector
duly ensuring forward and backward linkages with the active participation of all the
stakeholders.