In the very first year of the 11th Five Year Plan, the agriculture sector in Uttar Pradesh has suffered a setback with the state failing to achieve the target growth rate of 5.1 per cent. The growth rate in the period has been 2.8 per cent.

The growth rate of agriculture sector during the 10th Five Year Plan was only 2 per cent.

Despite the grim scenario further aggravated by the growing population and increasing vagaries of weather affecting both the rabi and kharif crops, the political establishment of the state seems to be in no hurry to implement reforms in the sector.

The Agriculture Infrastructure and Investment Policy, announced by Chief Minister Mayawati on August 3, 2007, had fuelled the hope of the revival of the agriculture sector in UP. Following opposition by the traders to the entry of the retail sector in the state, particularly of the Mukesh Ambani's Reliance Fresh, Mayawati rolled back the policy within 18 days and Reliance asked to down its shutters on August 21.

The policy cleared the decks for the retail industry to invest in the sector. The government then projected that an amendment to the UP State Agriculture produce marketing Board Act, on the lines of the model APMC Act circulated by the Centre, would attract investment to the tune of Rs 40,000 crore in the agriculture sector by 2011. The new policy, besides eliminating middlemen in agriculture trade, was projected to give boost to ‘big’ retail players in the state. The Act provided for the setting up of mandis by retail stores, besides allowing them to directly purchase the agriculture produce from the farmers.

... contd.