‘Link Central grants with agriculture reforms’

New Delhi: A high level chief ministerial panel has suggested that government should link grants and allocations made by the finance commission to states with the reforms in the agriculture sector.

This proposal was discussed in the first meeting of the high-powered committee of chief ministers for transformation of Indian agriculture on Thursday.

Maharashtra chief minister Devendra Fadnavis is the convenor of the committee, which was formed last month during the governing council meeting of Niti Aayog.

Briefing the reporters about the meeting held at Niti Aayog, Mr Fadnavis said there should be greater coordination between the ministries of agriculture and commerce as one deals with production, while the other with marketing.

“Grants of the central government and fund allocation of the finance commission should be linked with the agriculture reforms undertaken in states,” he said while adding that it is essential to ensure simultaneous reforms in the states.

The Maharashtra chief minister further said unless all states come on board, the country will not witness major transformation in the agriculture sector.

Among other things, some committee members also questioned the utility of the Essential Commodity Act (ECA), 1955, in the food sector.

He underlined the need to enhance private investments in agriculture sector. Mr Fadnavis added that the focus should be on advancing the growth in food processing sector.

The need to bring down institutional credit costs also came to the fore and linkages with financial institutions was highlighted. Measures like market access to farmers, E-NAM, the need for a dynamic electronic platform, proper distribution of subsidies were also discussed at length at the meeting.

The next meeting of the committee is likely to be held on August 16 in Mumbai.