With the entry of multi national corporations in seed production and distribution and the consequent effects of patenting under the World Trade Organization (WTO) regime, providing quality seeds to farmer at an affordable cost is a challenging task. Here are some measures that help in the growth of agro industries –
- To meet the growing competition for globalization, companies in the agro industry business should adopt modern cost effective processing technologies. For this, the future growth of agriculture has to be yield based. Development of infrastructure is essential to support this growth.
- The farm credit system in Indian agriculture, evolved over decades has been instrumental in enhancing production and marketing of farm produce and stimulating capital formation in agriculture. Credit for Indian agriculture has to expand at a faster rate than before because of the larger investments needed for the growth and export of animal husbandry, aquaculture, fish farming, horticulture, floriculture and medicinal plant products.
- It is also necessary to improve rural storage, cold storage and transportation facilities and develop efficient marketing and export networks to optimize the production and export potentialities in respect of these products and give them an edge over other countries in the globalization scenario.
The enhanced availability of bank credit through priority lending to agriculture and agro based industries, favourable terms of trade, liberalized domestic and external trade for agricultural products attracted private investment in agriculture in recent years. It is likely that with the appropriate policy initiatives, the process of globalization of agro industries will accelerate in the future.