Agriculture is still the backbone of India’s economy. Its buoyant growth is still important for maintaining the lifeline of the nation. India has been lucky as it has had successive good monsoons for the last six years , so much so, the country has a comfortable grains position and has not seen the necessity to import grains from anywhere. In the last five years of UPA governance we had a heavy weight and seasoned politician, Sharad Pawar, who has enough administrative experience as well as a good agricultural background to run the ministry. It was a perfect fit.

Industrial Economist sought his views on the success so far and the future goals in the UPA’s second term of governance. In this freewheeling exclusive interview to TN Ashok, Pawar answers questions with consummate ease backed by adequate statistics on the future course of agriculture and his own priorities for the nation on the farm front.

Excerpts from the interview:

IE: Your agenda for action in the second term of governance in the agriculture ministry?
Sharad Pawar (SP): Agriculture has a crucial role to play in the overall economic sense and social well-being of the country. In keeping with this, our agenda is to aim for inclusive growth as envisaged in the Eleventh Plan. The comparatively better performance of agriculture in the recent past was made possible by implementing schemes such as the National Food Security Mission, Rashtriya Krishi Vikas Yojana, Macro Management of Agriculture, Horticul-ture Mission… The ministry would continue to strive for sustaining the robust GDP growth it had achieved providing employment to about 58 per cent of the work force in the country. Proposals have been sent to the finance ministry for approval of new initiatives. The National Policy for Farmers also envisages ensuring the well-being of the farmers by raising their living standards.

IE: What is your take on the performance of the agriculture sector so far?
SP: Agriculture has contributed nearly to 18 per cent of GDP at constant (1999-2000) prices. Agriculture and allied sectors have seen substantial growth. The sector is a significant contributor to the national economy. The average growth rate realized during the last four years has been more than 4 per cent. Foodgrains production, which was stuck up in the band of approximately 190 million to 213 million tonnes in the last decades, has finally started moving northwards. As per the final estimates for 2007-08, total foodgrains production at 230.78 million tonnes was an all time high. During 2008-09, this would be about 230 million tonnes. All these underscore the achievement and crucial role of agriculture in the economy.

IE: What is level of buffer stock for different grains?
SP: As on 1 June 2009 we had about 331.22 lakh tonnes in respect of wheat and about 204.03 lakh tonnes in respect of rice. So we have a total buffer stock of grains at about 535.25 lakh tonnes. As of now it seems adequate.

IE: Would there be a necessity to import grains to make up any shortfall, say in the future, given the uncertainties of monsoon?
SP: The overall position of foodgrain in the central pool is quite comfortable and I think there should be no need to import grains. The procurement of wheat in rabi marketing season is expected to cross 245 lakh tonnes and the rice procurement in kharif marketing season is expected to cross 310 lakh tonnes. And against the buffer norm on 1 April 2009, of 40 lakh tonnes for wheat and 122 lakh tonnes for rice, the actual stock position is 134.20 lakh tonnes and 350.33 lakh tonnes respectively.

IE: What is the outlook on the foodgrains production front – kharif and rabi?
SP: Foodgrains production is estimated at 228.95 million tonnes and rice production is estimated to be an all time high at 99.37 million tonnes. Crop production in the kharif season is still dependant to a large extent on the quantity and distribution of rainfall during the monsoon season. As per the India Meteorological Department’s long range forecast for the 2009, South West monsoon season (June to September), the rainfall for the country as a whole is likely to be near normal. Quantitatively, monsoon season rainfall during 2009-10 is likely to be 96 per cent of the long period average with a model error of plus minus 5 per cent.
Assuming near normal rainfall during the season, both in terms of quantity and spread, over all prospects of kharif crops appear to be normal.

IE: India has been fortunate to have successive successful monsoons over the last six years. How long can this trend last? Can we depend upon the vagaries of the monsoon to build up stocks? Is there an alternative plan to take care of the less monsoon years?
SP: The Ministry of Agriculture is focusing on certain strategies now given the significance of changing rainfall patterns and climate vagaries. One is the development of rainfed agriculture. The National Rainfed Area Authority is to develop a roadmap and perspective plan for increasing agriculture productivity in rainfed areas. Special focus has been made for rainfed areas/districts under the Rashtriya Krishi Vikas Yojana, National Food Security Mission and Macro Management of Agriculture programmes.

There is this implementation of Watershed Programmes to cover rainfed areas to improve moisture storage, water harvesting and ground water recharge to ensure more availability of water for crops. About 30 million hectares is targeted for coverage under watershed programmes by both Ministers of Rural Development and Agriculture.

IE: How will you manage the adverse impact of climate change?
SP: Under the National Action Plan on climate change, the National Mission on Sustainable Agriculture is under consideration to frame and implement the adaptation and mitigation strategies for minimizing the adverse impact of climate change on agriculture. Efficient water management of the available/created water resources through convergence of resources/programmes of various ministries/departments. We have water conservation, groundwater recharge and rain water harvesting schemes by adopting appropriate technologies and funding mechanisms with the resources of the integrated Watershed Management Programme of Department of Land Resources, NREGA of the Department of Rural Development and programmes of the Ministry of Water Resources have potential to yield good results.

Again enhancing productivity of water with distribution and applicaton of irrigation water using micro irrigation, supplemental and deficit irrigation, through combined efforts of the Ministry of Agriculture and Ministry of Water Resources have potential to yield good results.

IE: There have been some problems on the exports of rice last year. These issues been resolved, both for basmati rice and non-basmati rice stocks? Will the restrictions come again or won’t be needed at all this year?
SP: What happened in 2008 was that the prices of several essential commodities, including rice, had gone up substantially in the month of March. Government did take several steps to improve the price and availability situation in the domestic market, including imposition of export duty of Rs 8000 per tonne on basmati rice export which was removed subsequently.

Export of basmati rice is allowed with a Minimum Export Price (MEP) of $1100 per tonne. This MEP has been imposed to ensure that only high value rice got exported. The decision regarding non-basmati rice will be taken by the government after assessing the progress of monsoon and production scenario in the rabi crop of 2008-09 and taking into account the additional requirement for meeting the commitments under the TPDS, other welfare schemes, etc. However, export of 20 lakh tonnes of non basmati rice has been allowed by the government on diplomatic grounds.

IE: What is the future outlook of your ministry?
SP: Our ministry is fully geared to take up any challenge relating to food security for the nation. The endeavour is not only to ensure food security through increased production and productivity but also to enhance the well being of farmers by improving the economic viability of farming through substantially improving net income of farmers. Needless to say the emphasis of the Agriculture Ministry is to increase productivity and profitability, strengthening institutional support, and improvement of land and water apart from provision of appropriate price policy and risk mitigation.