PM's  speech on the occasion of conference of State Chief Secretaries at  Parliament House Annexe
Speaker: Dr.Manmohan Singh
Date: August 8, 2009 New Delhi

PM's  speech on the occasion of conference of State Chief Secretaries at  Parliament House Annexe Hindi Version Today the country is facing a difficult situation.  The monsoon has been delayed and in many places it has been deficient, though some parts of the country have received normal or excess rainfall.   Agricultural operations have been adversely affected in several parts of the country causing distress to farmers and their families.  A deficit of more than 6 million hectares has been reported in paddy, which is the worst affected crop. However, we are helped by the fact that we are operating today against a back drop of record production and procurement of foodgrains in both 2007-08 and 2008-09.  This was made possible by the substantial increase in the Minimum Support Prices and other policy initiatives.  Thus, we are in a position to ensure adequate availability of foodgrains in the drought affected areas.  We should not hesitate to take strong measures and intervene in the market if the need were to arise. Our collective efforts should be to work out an area specific strategy. We should maximise production in the traditional crops in those areas which have had adequate rainfall and look for alternate crops in those areas where paddy could not be sown due to deficiency in rainfall.  The other part of our strategy should be to save the standing crop.  This would help us as a nation to mitigate the adverse effects of the inadequate rains from the point of view of overall food production of the country. I am sure that all the States would be implementing alternate crop plans for those areas which have received deficient or scanty rainfall or have passed through a prolonged dry spell. Government of India has taken a decision recently to re-imburse  50% of the cost that the State would incur in providing diesel subsidy to those farmers who are affected.  Moreover, a few states have been provided additional power from the Central pool.  I have requested the Minister of Power to extend similar support to other States.  I would, however, request you to ensure that this additional power is used only for agricultural operations. Two years back we introduced two important schemes for the agricultural sector, namely, the Rashtriya Krishi Vikas Yojna and the National Food Security Mission.  It is a matter of concern that there are several States where funds under these two schemes are still lying unutilised.  I would urge all of you to kindly review the position when you get back and ensure that funds meant for the farmers are not left unutilised due to procedural constraints. We should also start planning for the coming rabi season so that we are able to increase rabi production to compensate for whatever loss in production we may face in kharif.  This would require that we meticulously plan for the availability of seeds, fertilisers and other inputs to the farmers.  Availability of credit has to be ensured through the banking and cooperative channels.  In fact, since the country is deficit in pulses and oilseeds production, this may be a good opportunity to utilise available land by diversifying to rabi pulses and oilseeds and enhancing their productivity as well. I would like to take this opportunity to emphasize the need for efficient utilization of our water resources. There are several issues here such as excessive use of ground water in some regions leading to falling water tables; wasteful use of ground water leading to degradation; and very little effort towards water harvesting.  The problem of managing the water sector is very complex.  Situations like the present one remind us of the need to focus our attention on this neglected area.  We have to develop a common strategy on the cautious use of ground water in critical areas; exploring the untapped water in the Eastern region; creating storage capacity; in situ moisture conservation; rain water harvesting and ground water re-charge; promotion of tank irrigation; and participatory water management.  We have several schemes through which these objectives can be achieved.  However, we require more efforts and better coordination in this direction.  We should use the funds available in these programmes to immediately restore our water bodies.  That would have a direct impact on agricultural operations. On the food front, one major challenge is to ensure proper management and distribution of food stocks to meet the needs and expectations of the people of India.   We expect State Governments to intervene in procurement to supplement the efforts of the Central Government.  This would, in addition, reduce the cost of procurement, storage, freights and distribution and thus ensure better availability to the people. While the current food stock position is comfortable, we need to ensure that this position continues in the next year as well.  To this purpose, in the coming season, we have to procure both paddy and wheat to meet the targets set for each State Government.  Simultaneously, we have to build proper storage capacity in the country.  The Central Government is committed to creation of adequate storage capacity.  State Governments must involve themselves in this important endeavour. At the same time, we need to be aware of the possibility that reduced production of kharif crops in the current year may have an inflationary impact on prices of food items in the coming months.  Of late, we have seen a rising trend in the prices of certain essential commodities like pulses, sugar and some vegetables.  In order to contain increase in prices of essential commodities, the Central Government and the State Governments will have to work together and activise the public distribution system, which is an important safety net especially for the poor and helps cushion them against price rise.  We will also have to ensure effective enforcement of stockholding limits and strong action against hoarders and black marketers. Going back to the immediate concerns, I would urge that wherever there is need, the States should immediately commence relief operations.  In case the Contingency Relief Fund available with the States is not sufficient, they should quickly prepare a detailed memorandum for assistance under the National Calamity Contingency Fund.  I am told that no State has so far sent its memorandum seeking assistance for drought affected districts, even though 141 districts in the country have been declared as drought affected.    The potential offered by the National Rural Employment Guarantee Program should be fully utilised.  The States may also monitor the availability of seeds, fodder and cattle health requirements and, if necessary, arrange for fodder outlets or cattle camps, as appropriate. In short, the contingency plan for crops, drinking water, human and animal health, fodder etc., should be brought into operation without delay and a close watch kept on availability of foodgrains and prices of essential commodities.  The need is for us to act promptly, collectively and effectively.  I assure you of our Government's full support regarding any additional assistance that may be required in your efforts.  In no case should we allow citizens to go hungry.