Steps to Promote Investment in Agriculture

Press Information Bureau: Dec 12, 2012The Government of India has launched several schemes to increase public investment in agriculture sector, such as, the Rashtriya Krishi Vikas Yojana (RKVY), National Food Security Mission (NFSM), Development and Strengthening of Infrastructure Facilities for Production and Distribution of Quality Seeds, National Horticulture Mission (NHM), Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize(ISOPOM), Gramin Bhandaran Yojana etc.

In addition, Government has substantially improved the availability of farm credit and increased Minimum Support Price to improve investment in the farm sector.

Allocation of the Department of Agriculture & Cooperation has increased considerably from Rs.5560.00 crore in 2007-08 to Rs.20208.00 crore in 2012-13 facilitating more investment in agriculture sector.

Besides, the Government has issued a “Framework for Public Private Partnership for Integrated Agricultural Development” under RKVY for facilitating large scale integrated projects, led by private sector in the agriculture and allied sectors, with a view to aggregating farmers and integrating the agricultural supply chain.

FDI, upto 100% is permitted, under the automatic route, subject to conditions, as mentioned in para 6.2.1.1 of Circular 1 of 2012 – Consolidated FDI Policy, in the following agricultural activities:

Floriculture, Horticulture, Apiculture and Cultivation of Vegetables & Mushrooms under controlled conditions; Development and production of Seeds and planting material; Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture, under controlled conditions; and Services related to agro and allied sectors.

This information was given by Shri Tariq Anwar, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Lok Sabha today.

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