Prime Minister Manmohan Singh announced a Rs 25,000-crore (Rs 250 billion) package to revive the agricultural sector at the National Development Council meeting on agriculture. Business Standard correspondent Asit Ranjan Mishra spoke with former Union agriculture minister and Planning Commission member Sompal on the government's agriculture strategy.

Sompal, who is deputy chairman of the Madhya Pradesh Planning Commission, says more needs to be done to boost farm growth. Excerpts:

Do you think the steps announced by the government to achieve 4 per cent agriculture growth rate target during the 11th Five-Year Plan are sufficient?

Merely announcing targets does not mean anything, unless backed by appropriate fund allocation and change in priorities of spending Plan funds. I have not gone through the details of the Rs 25,000-crore (Rs 250 billion) funding announcement for the current Plan period, but this means the availability of Rs 5,000 crore (Rs 50 billion) every year.

If the government is to distribute it among the 30-odd states, then each state will on average get Rs 170 crore (Rs 1.7 billion). This is a minuscule amount. At present, we are spending more than that. So it will not help.

Then it depends how this money is spent. If you are spending on asset creation, then it may help, but if you are spending on cash-rich programmes, a major portion gets pilfered.

What is the biggest problem that agriculture is facing today?

The major problem of agriculture today in terms of production and productivity is that in the 60 per cent rainfed area, the productivity is stuck at the classical level of one tonne per hectare.

On the other hand, in the assured irrigation areas, the yields have plateaued for different reasons. The soil productivity has reached a certain limit.

Unless there is technological breakthrough, which is nowhere in sight, the productivity cannot increase.

What needs to be done?

The government needs to ensure availability of water for farmers. Protecting farmers from unfair international competition, ensuring a good price through the MSP should be given priority. The agri-dependent villagers should also be encouraged to take up non-farming activities.

What is your view regarding the restructuring of the fertiliser subsidy?