Monday, October 18, 2010

Enhancing privatization in agriculture

RAJIV KUMAR, chief executive of the Indian Council for Research on International Economics Relations (ICRIER) states that a reduction in the Government footprint in the agriculture sector was a necessary condition to enhance private investment into Indian agriculture. In a commentary for the East Asia Forum, "Indian agriculture: how to encourage private investment", he states that the government's pervasive presence ranging from control of trade and the land market, regulation of price, monopoly over R&D, and veto on new varieties had not just increased uncertainty for private players but also created huge entry-barriers to private players. In the backdrop of the creation of a sub-group on 'Enhancing agriculture production and food security' under the Prime Minister's Council on Trade and Industry, he calls for the team to take a holistic approach including focus on the barriers to private investment rather than just detailing areas to promote private investment.

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