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Union Budget 2008-09  »   Story
India needs second Green Revolution, says Economic Survey
Indo-Asian News Service
New Delhi, February 28, 2008
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A second green revolution is necessary, particularly in rain-fed areas, to provide sustainable incomes to the country's distressed farmers, the Economic Survey for 2007-08 said.

"A second Green Revolution, particularly in the areas which are rain-fed, maybe necessary to improve the income of the persons dependent on the agriculture sector," said the government's annual economic report card.

Finance Minister P Chidambaram tabled the report in the Lok Sabha amid din from the opposition MPs demanding relief packages for farmers. Parliament has seen repeated disruptions over the farmers' plight since the beginning of the budget session on Monday.

The share of agriculture in gross domestic product (GDP) has sharply reduced to 18.5 per cent in 2006-07 from 36.4 per cent in 1982-83, though it continues to support over 500 million people, and provides employment to 52 per cent of the country's workforce.

The survey said the growth rate of food grain production decelerated to 1.2 per cent in 1990-2007, lower than the annual growth of population pegged at 1.9 per cent.

An official estimate says over 60 per cent of the country's cultivable area depends on rain for agriculture. In order to raise the productivity of rain-fed areas, the government in 2006 set up the National Rain-fed Authority of India (NRAI).

According to the survey, the country reported an estimated food grain production of 217.3 million tonnes in 2006-07, missing the target by 2.7 million tonnes.

"In 2007-08, food grain production is expected to be 219.3 million tonnes against the target of 221.5 million tonnes."

Using high-yielding varieties of seeds and increased use of fertilisers and irrigation led to the Green Revolution in India after 1965.

The programme, started with the help of US-based Rockefeller Foundation, was based on high-yielding varieties of wheat, rice and other grains that had been developed in Mexico and the Philippines.

Although major benefits of the Green Revolution were experienced in the north and northwest, the programme substantially increased production of food grains, mainly wheat and rice, catapulting the share of agriculture in GDP to 36.4 per cent in 1982-83.

The tempo of food grain production growth could not be maintained due to a decline in irrigated cultivable land and scarce rains.

"There has been a considerable decline in the growth rate of cultivable areas, productivity and the area irrigated for major crops like rice, wheat, pulses," the survey said.

It added that in 1992-97, irrigated areas cultivating food grains registered a growth rate of 1.74 per cent against 1.25 per cent in 1989-2007, while only 72 per cent of the country's districts get normal rainfall annually.

"The pace of creating additional irrigation potential came down sharply from an average of about three per cent annually in 1950-90 to 1.8 per cent in 2002-07."

The survey, however, sees a silver lining in the ongoing efforts under the government's flagship Bharat Nirman Programme to create irrigation potential in the country.

The survey said that around 3.62 million hectares of irrigation potential has been created in 2005-07.

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Surfers' comments
This is a very good budget, especially for agriculture and education. P Chidambaram is the best.
- By Saravanan P (plsharavanan@rediffmail.com)
If you can waive Rs 50,000 crore for farmers what about the tax on housing loan interest? That should also have been reduced.
- Chandra Shekar V (rilshekar@yahoo.co.in)
Please tax the street hawkers and give relief to the salaried persons.
- Rajaram (rajaramghurup@rediffmail.com)
This is the worst budget the finance minister has ever presented. The backbone of the country's economy is the transport but he completely missed it out.
- Jayakaanthan A (jayakaanthan@gmail.com)
The budget is sure to augment growth and will also lessen the volatility of the stock markets.
- Sidharth Paul (sidharth.paul@gmail.com)
Overall, the budget is satisfactory but the health sector should have been given greater importance.
- Ankit Chaudhary (chaudharyankit1987@gmail.com)
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