More than a decade of reforms have scarcely impacted Indian agriculture, which remains predominantly of the subsistence variety. With the WTO-led liberalisation of trade in agriculture, can we afford this? Union agriculture secretary, J N L Srivastava, spoke to Mohommad Adil about the state of Indian agriculture, its problems, and how the country plans to meet the challenges that lie ahead.

How does Indian agriculture compare with the rest of the world?

I don't think it is relevant to compare agriculture across countries because each country has different agro-climatic zones and conditions that are specific to it alone. Other issues like the investment capacity of farmers and the policy environment play an important part in determining the performance of the farm sector. But, we have made significant strides in the past, having transformed from a food-scarce to a food-surplus economy.

But for precisely that reason isn't there a need to look at agriculture policy from a different perspective?

I entirely agree. For one thing, there is still great scope for improving productivity. That is going to be the major thrust of new policies. And we want to do that within the framework of sustainable development. Maximum input efficiency while ensuring soil and water conservation and other environmental issues is a top priority.

What are the implications of moving to a market economy for agriculture?

Agriculture is now dependant on two Ms: monsoon and markets. So marketing is a very important infrastructural component for strong growth in agriculture. As we become more and more market driven, the need will be to integrate the national market and allow farmers and traders to sell at the most remunerative price. At present, movement is restricted for a very small number of crops under ESMA and that too on a sporadic basis.

Are you doing anything to build the infrastructure for tapping market opportunities?

A major project for creating cold storage facilities is under way, with a back-ended credit linked programme in which a 25 per cent subsidy is given to the financial institutions that extend subsidised credit. This programme has already created 1.6 million tonnes of storage facility. On other fronts, the Kisan Credit Card scheme has picked up, and we are initiating a big programme to revamp the co-operative credit system.

Do you see the private sector coming into farming in a big way?

One area where we need the private sector is in extension activity. Agri-clinics are to be set up on private initiative to encourage adoption of new seeds and better cultivation technology. As for corporate farming, it will be more in the nature of contract farming rather than corporate ownership of land. Farmers will contract to sell their output to corporates who will primarily be in the food processing business.

Why hasn't this concept taken off in a big way yet?

The problem is one of assured supply and standardised quality of inputs. Secondly, the concept has to be accepted as a good way to do business. Gradually this concept seems to be becoming more acceptable to farmers and I am sure it will develop. The need is to set up marketing channels that will make this a profitable proposition for all concerned parties.

Will the Agreement on Agriculture help us?

On the one hand I feel that 'free trade' is not free in the real sense of the term. Trade opportunities will fructify only if developed countries agree to reduce domestic protection to agriculture. At present, they are far more protective of their farm sector than we are. Secondly, the need is to ensure that we ourselves hone the competitive edge.

This means that productivity has to increase so that we can lower per unit costs and be able to compete in the international market. Quality is another important element. If we can pull up our socks on these counts, then the WTO's agreement on agriculture offers opportunities for gain for all concerned.