The government came out with a National Agricultural Policy on 25th July 2000. NAP will help in creating Growth in employment in rural areas and secure a fair standard of living for farmers and agriculturist / their families. It envisages meeting the challenges arising out of the economic liberalisation/globalizations.

Need for reforms – Context

With the benefits of green revolution stagnating, it was found that it is leading to disparities across regions, crops, sections of farmers. There are large variations in yields among semi-arid/green revolution areas. Some high potential areas are lagging e.g. Eastern / N-E areas.

• There are vast disparities between actual and potential yields.
• Average productictivity level is still low as compared to-yields in our country and yields in other countries.
• Low level of mechanization as compared to other countries.
• Low seed replacement rates i.e. < 20% seed is produced in organized sector
• Only 50% credit is met through institutional sources.

Salient features of this policy are:

• Target of 4% growth rate p.a. for the next two decades. Target of 4% growth rate p.a. target to be achieved by 2005.
• Land reforms to provide land to poor farmers.Consolidation of holdings in all states of the nation.
• Private sector participation will be encouraged through contract farming land leasing arrangement to allow accelerated technology transfer, for capital inflow, ensured market for production to facilitate the food processing of industry.
• To provide insurance umbrella for crops to farmers.
• To promote biotechnology.
• Target a growth that is technologically, environmentally and economically sustainable.
• The infrastructure will be developed to ensure better efficiency. Rural electrification will be important, use of new and renewable resources of energy for irrigation, and other purposes, private sector participation in agricultural research for developing new varieties and ensuring protection to the developed varieties and HRD.
• National Seeds Corporation & state seeds farming corporation with be restructured to promote the production of quality seeds and delivery to farmers at right time.
• Farmers service cooperative societies and taluk sale and purchase unions will be formed to facilitate the marketing of products as per the recommendation of national commission on agriculture.
• It envisages evolving a national livestock breeding strategy to meet the requirements of milk, meet, egg etc.
• Plant varieties will be protected   through appropriate legislation.
• Restrictions on movement of agricultural commodities throughout the country would be progressively dismantled.
• Excise duty on farm machinery & implements etc, the structure of taxes on foodgrains and other commercial crops will be reviewed.

Significance

This policy has been planned under the provisions of World Trade Organisation so as to face the challenges of agriculture sector. This policy gives emphasis on promoting agricultural exports after fulfilling domestic demand. It deserves appreciation at least on two counts. One, it shows its willingness to correct the imbalance in the reform process hitherto by incorporating agriculture also, which had remained largely neglected earlier. Second, the document weaves a web of perhaps the most non-controversial ‘policy’ statement.