BL Agri & Commodity Summit 2024: Private investments in agriculture must increase five-fold, urges CACP Chairman

‘10% increase in formal credit can lead to 1% rise in farm sector share in overall GDP’ [View in browser]( [See all newsletters]( 06 January 2024 BL Agri & Commodity Summit 2024: Private investments in agriculture must increase five-fold, urges CACP Chairman [Vijay Paul Sharma, Chairman, Commission of Agriculture, Costs and Prices, addressing the businessline Agriculture and Commodity Summit 2024 in New Delhi on Friday] Commission for Agricultural Costs and Prices Chairman Vijay Paul Sharma gave a clarion call to increase private investments in the agriculture sector five times by 2030, while urging farmers to look at opportunities beyond food. Inaugurating businessline Agriculture and Commodity Summit 2024 in New Delhi on Friday, he said, “I don’t think any sector can grow with private sector investment of just 2 per cent. We must take this private investment to 5 or 10 per cent.” Stating that farmers must look to tap opportunities, Sharma said they should look at meeting industrial needs such as ethanol through maize and other crops. In his special address, Shantanu Pendsey, Chief General Manager, SBI, said the country’s largest commercial bank is working on an “integrated farming model” that could help farmers diversify their incomes. “Democratisation of credit and insurance is required in farming,” he said, adding that there should be a focus to “make producers become processors,” he said. Pendsey said a 10 per cent increase in formal credit can lead to at least a 1 per cent increase in agri contribution to overall GDP. Invest in enchancing productivity In his valedictory address, Ajay Kumar Sood, Deputy Managing Director, NABARD, said it would be important to invest in productivity-enhancing agriculture practices that use fertiliser, high-yielding seeds and irrigation. But it should have a minimal impact on the natural resources to sustain long-term food security, he said, stressing the need for the research agenda to be re-oriented to prioritise breeding stress-tolerant crop varieties and climate-smart practices. Raghuvir Srinivasan, Editor, businessline, highlighted that Indian agriculture, which is a critical sector for the economy, accounting for a fifth of GDP, is now at a crossroads with a lack of funds hampering farmers. Many farmers are having advanced technologies at their disposal while facing problems of climate change at the same time, he said. The summit was sponsored by State Bank of India and co-powered by NABARD in association with NCDEX and INDOFIL Industries Ltd. Dhanuka Agritech Ltd. and Kribhco Agri Business are associate partners. The NSE and Vaikunth Mehta National Institute of Co­ operative Management were the regional sponsors of the Summit. Leadership role The sugar sector could take the leadership role in implementing smart agriculture over the next few years. On the other hand, maize, which consumes less water, is considered a future crop to meet the ethanol industry demand and help combat climate change, said speakers at the panel discussion on the ‘Challenges posed by Climate Change’. In the session on ’resilient supply chains’, experts called for the promotion of technologies that give farmers price visibility and phygital (physical and digital) infrastructure to help them discover better prices. Experts discussing the ‘Role of Women in Agriculture’ said women need to be kept at the centre-stage while designing policies. Perceptions need to be changed while ensuring women farmers, especially small-holders, are provided with access to technology and considered entrepreneurs. The panel on ‘Easing access to finance for farmers’ told the Summit that the fintech agri ecosystem is likely to add $100 billion (about ₹8-lakh crore) to the country’s GDP, currently valued at about $3.5 trillion, in the next five years on the back of booming investment in the agriculture sector. The Centre was urged to be “realistic” in distributing free foodgrains through the public distribution system, experts at the panel on ‘Food Security’ said. Destination production on foreign soil should be borne out of a sovereign understanding between the two countries to avoid the risks many global attempts have faced in the past, they said. Industry experts at the ‘Tapping livestock sector potential’ said dairy, poultry, and fisheries can provide nutritional security to the malnourished in the country at an affordable cost. 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