NITI Aayog ranks J&K at 28th among 30

Nishikant Khajuria
JAMMU, Dec 28: There is  no ease of doing agribusiness  in Jammu and Kashmir as the State has not adopted the market reforms and farm friendly policies suggested  for offering suitable environment for the same notwithstanding the fact that around 70 percent of  population in J&K  gets livelihood directly or indirectly fromthe Agriculture and allied Sectors.
According to a recent study report by the National Institution for Transforming India (NITI Aayog), J&K ranks at 28th among 30 States and Union Territories in the performance list in terms of adoption of market reforms and farm friendly policies.
The reform indicators, like setting up market in private sector, farmer-consumer market, contract farming, e-trading, Single Point Levy in market, single trader license, fruits and vegetables out of APMC registration,   joining e-NAM and Tax/levies/fee on agri commodities, show zero progress in Jammu and Kashmir State where felling of trees continued to be restricted while land leasing is still banned.
The study report on the basis of performance on Agriculture Marketing and Farmers Friendly Reforms, has accorded just 7.4 points to J&K against 81.7 of Maharashtra, 71.5 of Gujarat, 70 of Rajasthan, 63.3 of Haryana, 43.9 of Punjab, etc. Only Delhi and Puducherry, with 7.3 and 4.8 points,  are below J&K in the ranking.
The index has been constructed to compare the status of reforms in agriculture sector across States and UTs. The index is based on action taken by each State and UT to reform the system of agriculture marketing, facilitate and liberalize lease in  and lease out  of agricultural land and liberalization of regulation on felling and transit of trees grown  on private land.
Market reforms aimed to promote competition, efficiency, transparency and removal of regulatory restrictions having adverse effect on producers, reforms indicate the ease of doing agribusiness and range of choices and options granted to producers to sell their produce. The information on these aspects was taken from the concerned Ministries of Government of India.  The index is termed as Agriculture Marketing and Farmer Friendly reforms Index (AMFFRI).
Since early 1990, growth trajectory of agriculture and non-agriculture sectors have witnessed divergent path. While non-agricultural sector experiences acceleration in growth, the agriculture sector continues to move on cyclic growth path around long term avenues of 2.75 percent annual rate of growth. As result,  income accruing to farmers and agricultural workers has lagged significantly behind the income of non-agriculture workers. Estimates based on NSSO data for the year 2011-12 classify 22.5 percent cultivator households and 36 percent agricultural labour households as poor.
The major factor for low growth in agriculture and rising disparities between agriculture and non-agriculture sectors is asymmetry in the implementation of reforms in the two sectors. Economic liberalization and deregulation had created very favourable environment for private sector investments in non-agriculture sectors, which has led to significant improvement in its performance, pulling up growth rate of economy. However, similar reforms in agriculture are either missing or remain patchy. Some attempts were made by the Central Government during the year 2002 to 2004 to initiate and promote reforms in agriculture through a Model APMC Act, changes in Essential Commodities Act,  and change in Milk and Milk Product Order. However, States like J&K did not adopt the reforms thus resulting into no improvement  in agriculture sector here.

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