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.

In the absence of retail stores for the agriculture produce, the traders continue to rake in huge profits at the cost of farmers. The potato farmers had to sell their produce at the rate of Rs 100-120 quintal in April last while the retail price of potato remains at Rs 1,000 per quintal.

The wheat farmers also suffered during the rabi season in March-April 2008, as the government refused to issue licence to private companies to make direct purchase from the farmers. The farmers were forced to sell wheat at Rs 950-975 per quintal to the ‘Arathia’ appointed by the state Government. The Arathias had the best of both the worlds, as they exploited the farmers and also bagged a commission of Rs 65 crore at the rate of 2.5 per cent from the government for the total wheat purchase from the farmers.

Decades of neglect of the agriculture and allied sector in UP has resulted in the stagnation of the sector. UP achieved the highest growth rate of 9.7 per cent during the Sixth Five Year Plan (1981-85) period. During the Ninth Five Year Plan (1997-2002), the growth rate dipped to lowest-ever to 0.8 per cent.

During the first five FYPs, from 1951-1979, the plan outlay for the agriculture sector in UP was double digit, ranging between 24.69 percent to 13.69 per cent of the total plan outlay. In subsequent five year plans, from 1981 to 2007 till the end of the 10th FYP, the outlay for this sector fell to single digit, between five to seven per cent. During the current 11th Five Year Plan, the outlay is expected to marginally cross 10 per cent.

For over 25 years, successive governments ignored the crucial sector of UP's economy despite the fact that as much as 79 per cent of the state’s population is dependenton this sector, which contributes 30 per cent to the state’s GDP. UP contributes 19 per cent to the total national food production.

The agriculture universities of UP had played a stellar role in ushering in the green revolution in the state in the 60s with for developing new varieties of wheat, paddy and crops of oilseeds and pulses.

The three agriculture universities in UP are no longer known for any research and development and the state Government has frozen their grants. The priority accorded to research in agriculture can be gauged from the fact for over three decades, the total expenditure on R and D in agriculture is only 0.08 per cent of the total agriculture GDP of the state. The same in Himachal Pradesh is as high as 1.37 per cent.

Said Dr R S Rathore, deputy director general of the UP Council of Agriculture Research, “No short-terms measures will work in UP for reviving the agriculture sector. Be it the opening of agriculture to retail sector or a hike in outlay for research and development, a holistic long-term policy for the agriculture and allied sector should be worked out by all the private and government agencies involved in the sector.”