Capital Budgeting

Page 1 of 64

Capital Budgeting

By | June 2012
Page 1 of 64
Agriculture and Food Management
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CHAPTER

8

ioneering work by agriculture scientists and the efforts of farmers had helped achieve a breakthrough in the agriculture sector in the 1960s, popularly known as the ‘Green Revolution’. High agricultural production and productivity achieved in subsequent years has been the main reason for attaining food security to a large extent. The country has not witnessed any big technological breakthrough in agriculture since then. The food safety net for each and every of the over a billion citizens—a number that is growing— requires enhanced agricultural production and productivity in the form of a Second Green Revolution. Further, special attention is required for achieving higher production and productivity levels in pulses, oilseeds, fruits, and vegetables, which had remained untouched in the First Green Revolution but are essential for nutritional security. In this regard, achieving high production of poultry, meat and fisheries is also essential. The relatively weak supply responses to price hikes in agricultural commodities, especially food articles, in the recent past brings back into focus the central question of efficient supply chain management and need for sustained levels of growth in agriculture and allied sectors. The choice before the nation is clear—to invest more in agriculture and allied sectors with the right strategies, policies, and interventions. This is also a ‘necessary’ condition for ‘inclusive growth’ and for ensuring that the benefits of growth reach a larger number of people.

8.2 The growth of agriculture and allied sectors is still a critical factor in the overall performance of the Indian economy. As per the 2010-11 advance estimates released by the Central Statistics Office (CSO) on 07.02.2011, the agriculture and allied sector accounted for 14.2 per cent of the gross domestic product (GDP), at constant 2004-05 prices. During Figure 8.1 700

the period 2004-05 to 2007-08, the GDP for...