FM's address at the annual convocation of Punjab Agricultural University
	15:31 IST

Following is the text of the convocation address delivered by the Finance Minister, Shri P. Chidambaram on the occasion of Annual Convocation of Punjab Agricultural University, in Ludhiana today. "Punjab has a unique place not only in the history of India but also in the economic life of the country. It is the granary of India, a reputation that was acquired through foresight and dint of hard work, and it is a reputation that Punjab richly deserves. The 1960s and the 1970s were the decades when India was transformed from a food grain importing country to a country self-sufficient in food grains. During this period, many institutions made significant contributions to the evolution of agricultural policy, to research and development, to extension work, to communication and education, and to demonstration. Among these institutions, the pride of place undoubtedly belongs to Punjab Agricultural University. In particular, I would like to record the contribution made by this University to developing new strains of high yielding varieties specific to different agro-climatic zones. Acknowledging the catalytic and pioneering role played by Punjab Agricultural University, I announced in the Budget for 2006-07 that the Government of India recognized this University as an institution of excellence and, accordingly, would make a special grant of Rs.100 crore. I am glad to know that the University has submitted a detailed plan to utilise this grant and that the plan is in an advanced stage of consideration. It is a privilege and an honour to be invited to deliver the convocation address. I am deeply grateful to the Chancellor, His Excellency the Governor of Punjab, and the Vice Chancellor, Dr. K.S. Aulakh, for the opportunity to speak to such a distinguished audience. The green revolution was a significant turning point in the economic development of India. It is true that the green revolution was restricted in terms of crops (wheat and paddy); it was restricted in terms of regions (Punjab, Haryana, west Uttar Pradesh and Andhra Pradesh); and it was also restricted to the irrigated areas of these States. However, it left a deep impact on a whole generation of Indians who were witness to the remarkable transformation in Indian agriculture. Today, unfortunately, the green revolution is a distant memory, and its impact has certainly ebbed. We need to revisit the problems of the agricultural sector and address the cry of anguish that we hear from farmers from different parts of the country. Let me remind you that agriculture is the biggest private sector economic activity in India. However, farm holdings are small, the average size being one hectare. In fact, 66 per cent of all farm holdings are one hectare or less. Furthermore, only 54 per cent of all agricultural land is assured of irrigation facilities. These two factors – small holding and monsoon dependence – have made farming, in the perception of an overwhelming majority of farmers, a non-remunerative activity. Public investment in agriculture has been low. For example, in the period 1999 to 2004, public investment, on an average, was only Rs.8790 crore a year. Since 2004, an attempt has been made to correct the situation: public investment increased to Rs.12590 crore in 2004-05 and is expected to have increased further in 2005-06. The share of public investment in gross investment in agriculture has also increased from 18 per cent in 1999-2000 to 29 per cent in 2004-05. Likewise, the growth of credit to agriculture was sluggish between 1999 to 2004 at 18.7 per cent. In June 2004, a decision was taken to double agricultural credit within three years and in 2004-05, the growth of credit to agriculture was 44 per cent and in 2005-06, it was 34 per cent. In 2006-07, the target for farm credit of Rs.1,75,000 crore is likely to be exceeded. However, while denying to the farming community the externalities of public investment, we have expended a large amount of money in the form of subsidies. Fertilisers, seeds, power and, in some cases, water are subsidized. We have also tried to compensate the farmer through procurement of food grains at prices which are believed to be reasonable and remunerative. In my view, the time has come to reorder our priorities. The question that I would like to put to you – and I would urge you to answer it – is whether we should not reallocate more resources to public investment, especially irrigation which has large externalities, even if that requires a scaling down of other subsidies? The success of a policy has to be measured by the results on the ground. In that view, the policy that ushered in the green revolution was a resounding success. However, after the green revolution lost its momentum – and that happened in the early 1980s – the policy stance that was adopted has not yielded the desired results. We seem to have reached a plateau in agricultural production. The output of wheat has stagnated at about 70 million tonnes a year and of paddy/rice at about 90 million tonnes a year. The production of pulses has also peaked at 14 million tonnes a year. Oil seeds output, after rising for a few years, has levelled off at 27 million tonnes a year. The reasons for this stalemate are quite obvious: there has not been a major technological breakthrough in grain varieties or seeds or the use of fertilisers in the last twenty years. No farmer can become rich on one hectare or less of land holding. Increase in productivity and a remunerative price for his output can, at best, bring the farmer some relief. We can make sure that he has enough to eat and perhaps a decent roof over his head. The immediate challenge, therefore, is to enhance the productivity of farming, especially in wheat, paddy, pulses and oil seeds. In my view, this can be achieved only if we adapt genetic sciences to the needs of Indian agriculture. Tissue culture has already been adopted to create variability in crops like oilseeds, pulses, rice and potatoes, and this technique must be extended to other products. Biotechnology and genetics must be applied to improving nutrient quality, flavour and taste of produce so that there will be a wider range as well as market size for farm products. Science and technology must also be harnessed to introduce more crops that are resistant to pests and diseases, following the success of BT cotton. There are also other ways to help the farmer increase his income. A number of activities can be classified as ‘pre-farming’ or ‘post-harvest’, and can be turned into vital links in the long chain that can be described as ‘agriculture’. Today, these links are absent. As a consequence, the farmer suffers. Nowhere is the suffering and the loss more visible than, for example, when we see onions or potatoes or tomatoes rotting on the fields or in markets because there are no buyers. We should revise our outdated policy stance and allow new investors with new energy and new technology to enter the agriculture sector and build the missing links such as delivery of credit, inputs and other services, contract farming, post-harvest technology, cold chains, retail markets and export opportunities. However, to help the farmer get out of the circle of poverty, we have to encourage off-farm and non-farm activities. The skill set of an average farmer can easily embrace activities like dairying, poultry, animal husbandry and pisciculture. All that is needed to spur the farmer on adopting supplemental activity are adequate credit, extension work and an assurance that the products can be sold at remunerative prices. Farming must become, and must be seen, like any other economic activity where the driving force is profit. Application of science and technology, building a value chain with crucial links, and encouraging supplemental activities by farmers are areas in which the State should actively seek the cooperation of the corporate sector. It is universally acknowledged that there is a sacred bond that ties the tiller to the land. It is possible to bring the energy of the corporate sector into farming without affecting this sacred bond. I would urge the teachers and scholars of this great University to raise their sights and draw an ambitious blue print for Indian agriculture in the 21st century. There is no iron law that says farming is drudgery or that farming is a life of poverty or that farming is an occupation for those with no choice. It is possible to make farming an occupation of choice, an activity of profit and a way of life that brings dignity and prosperity. I offer my warm congratulations to the graduating class. An agriculture graduate can be the lamp that will light many other lamps. I wish you success in your chosen career and in your life." ***** BSC/BY/GN-326/06