WB gives $200 mn to India's agriculture sector
The credit will assist the country transform its agricultural sector from being primarily focused on food self-sufficiency to a more market-oriented approach.india Updated: Apr 19, 2006 08:38 IST
The World Bank has approved two credits totalling $200 million for India's National Agricultural Innovation Project to assist the country transform its agricultural sector from being primarily focused on food self-sufficiency to a more market-oriented approach.
"In the last ten years the Indian agriculture sector has undergone considerable changes. National food self-sufficiency has been achieved and the market demand for products such as fruits, vegetables, meat, eggs, fish, milk, sugar, and edible oils has increased and is encouraging diversification of production," the World Bank said in a release.
"While agricultural development has long been supply oriented, its future will be more market driven," it said.
"At the same time, analyses show that with the limited scope for area expansion, enhanced productivity, profitability, and competitiveness will be the main sources of future agricultural growth. The challenge for Indian agriculture now becomes to increase profitability, competitiveness, and income earning capacity in a market driven system, "it added.
The Bank project will support the development and implementation of agricultural innovations through collaboration among farmers, private sector, civil society, and public sector organisations.
According to the World Bank, the project responds to the goals addressed in India's National Policy on Agriculture (NPA) and the Tenth Five-Year Plan and will have the ICAR as the catalysing agent for management of change in the Indian National Agricultural Research System (NARS).