SME Times News Bureau | 05 Nov, 2009
India's farm sector growth will be less than 4 percent this fiscal on account of floods and deficient monsoon in some parts of the country, the Planning Commission deputy chief said Wednesday.

"It is extremely unlikely that the agriculture sector will grow more than 4 percent this year. The sector is not growing as it should have been," Montek Singh Ahluwalia said at the annual Economic Editors' Conference in New Delhi.

However, this would not pose a problem to food supplies in the country, he added.

"We don't need more than 2 percent (growth) of agriculture production," Ahluwalia said, adding that the country would not face any food shortage if the sector expanded by this amount.

He further emphasised the importance of using existing technologies and proper farming techniques to increase yields.

Increase in procurement prices and supportive government policies would help the farming sector to perform better in the 11th Plan period that ends 2012, Ahluwalia said.

"The price policy we follow is extremely supportive. We should recognise that farmers must have attractive prices. In the past three-four years, we have increased our procurement also."

India's agricultural sector grew 1.6 percent last fiscal, down from 4.9 percent in 2007-08.