Policy Framework for Agriculture Extension Interface with Private Sector Organizations
October 30, 2001, New Delhi

Welcome Speech of Mr Chirayu R Amin, President, FICCI

Hon'ble Shri Ajit Singh-ji,
Hon'ble Shri Shripad Y Naik-ji,
Prof M S Swaminathan,
Shri M S Banga,
Dr Rita Sharma,

Distinguished Speakers, Senior Government Officials and Friends,

It gives me great pleasure to welcome you all this morning. We are indeed privileged to have Shri Ajit Singh-ji, Hon'ble Union Minister for Agriculture with us. Thank you very much Sir, for kindly accepting our invitation. We are also pleased that Shri Shripad Naik-ji, Hon'ble Minister of State for Agriculture has kindly agreed to address the participants. We are proud to have with us Prof M S Swaminathan, internationally renowned and one of the finest agricultural scientists the country has produced. We are also grateful to Shri M S Banga, Chairman, Hindustan Lever Ltd, who is here today to share with us his innovative ideas on Indian agriculture. I would also like to thank Dr Rita Sharma, Joint Secretary & Extension Commissioner, Ministry of Agriculture for being with us.

Sir, the slowdown of our economy is now revealing the gaps in the programme of economic reforms launched about ten years ago. It is now clear that agriculture has emerged as one of the weaker areas of the economy. In the nineties, growth in the farm sector has not only been sluggish, but the mounting food stocks in the midst of large pockets of poverty suggests that the sector may have become uncompetitive.

Unless Indian agriculture, which supports nearly two-thirds of our population, grows at over four per cent per annum—if not more—over the next two decades, we will not succeed in sustaining GDP growth rates of eight per cent plus and eliminating poverty. And this growth rate would be achievable only when our farmers induct new technologies to diversify their cropping patterns, increase efficiency and productivity of their operations to become more competitive and explore new markets both at home and abroad. Undoubtedly, changes in farm policies have now become necessary to achieve these goals.

Fortunately, the new agriculture policy crafted by the government does provide us with a road map for moving in the right direction. And we are indeed lucky that a person who has grown up with the farming community and is their natural leader-is now responsible for implementing this Policy. We have no doubt that under Shri Ajit Singh's able stewardship Indian agriculture would successfully explore new paradigms of growth. He is one person who would be able to bring together on a table, experts like Prof. Swaminathan and Mr Banga and his team in the ministry to forge a new partnership of ideas to rejuvenate Indian agriculture.

Sir, the success of Indian agriculture during 1960 to 1990 was a product of a partnership between the Indian private sector represented by the hard working Indian farmer, trade and producers of inputs etc. and various arms of the Government machinery. While the success of this partnership has been laudable, its limitations in sustaining present and future growth have now become apparent. This partnership needs to be redefined and renewed and in all aspects of farm operations ranging from production of inputs and crops, support and marketing systems including exports, to generation of new technologies and their absorption.

This conference on "Interface" between the agriculture ministry and private sector organizations is one such attempt to redefine the partnership between the government and private sector in agriculture. It is apparent that reform of our agriculture extension services would play a key role in transforming Indian agriculture as indeed it did in the 1960s and 70s while launching the green revolution. I need not go into details as the main issues relating to the subject have been well documented in the paper distributed to all of you.

We are happy that the new framework for agricultural extension formulated by the Ministry of Agriculture recognizes the role of a multi-agency dispensation and an enhanced role for private sector agencies. However, effective implementation of the new policy requires an examination of existing rules, regulations and Acts which constrain private sector participation in delivery of agro-services. I hope that the conference would provide some guidance towards evolving an appropriate legal framework at both the central and state government levels.

The success of the private sector in extension services is now well established. The contract farming system that integrates agro-processing companies and farmers has been one of the success stories of effective extension services. I am sure this conference would suggest ways of building on such successes.

However, if these extension services are to be made universal the market may not be able to absorb all the costs. And it is in the interest of both the private sector and government that their partnership reaches out to the smallest farmer. Therefore, new institutional mechanisms may be needed to achieve this goal.

We are indeed grateful to the ministry for providing us this opportunity of working together. Sir, FICCI is deeply committed to the task of rejuvenating Indian agriculture and this would remain a thrust area for us in the days to come. We truly value our partnership with your ministry and we assure you that FICCI and its team from the private sector would do all they can to add real value to this partnership.

Thank You.