NEW DELHI
An expert committee has called for redeployment of farm subsidies given on electricity and irrigation to technology transfer and development of farm resources.

It also expressed concern over the decreasing public investments in agriculture and static Plan allocations to the sector which is likely to hinder a higher farm growth rate exceeding 4 per cent during the 10th five-year Plan.

M S Swaminathan Committee on agriculture and allied sectors for the Tenth Plan which presented its report yesterday to the government said some of the subsidies like free electricity for ground water use and canal irrigation have adversely affected natural resources and financial health of states.

"While subsidies may be desirable to adopt improved production technologies and entrepreneurship the ones adversely affecting natural resources have to be redeployed," the report said.

These subsidies must be diverted for activities which have a direct beneficial effect on technology transfer, developing on farm resources, diversification and generating employment and income for the rural poor.

The report said declining investments in agriculture in the form of Gross Capital Formation was affecting the development of infrastructure, productivity, processing and value addition.

Describing it as an area of great concern, the Swaminathan committee report said share of agriculture in the total GCF has come down from 17.7 per cent in 1978-79 to about 8 per cent in 1999-2000.

Share of public sector in agriculture GCF has also declined to 24.4 per cent in 1999-2000 (at 1980-81 prices) from 34 per cent in 1978-79 (at 1980-81 prices).

"If a higher growth rate in agriculture sector has to be achieved more investments will have to be made for development of infrastructure like irrigation, conservation and development of natural resources (water, land and biodiversity)".

Plan allocations in agriculture had remained static at around 14 per cent except the fourth plan when its 17.2 per cent although 70-75 per cent of the population was dependent on the sector.

The report said there ought to be emphasis on the development and exploitation of non-wheat/rice crops which have potential in terms of production, industrial uses and nutritional value for human and livestock but have remained under utilised.

Nutritious millets should not be classified as "coarse cereals" since it gives the wrong impression in the mind of the consumers.

India with comparatively less use of fertilisers and agro-chemicals had great advantage in the international market where the demand for organically produced food was increasing.