Montek calls for sweeping reforms to boost farmville

India is an agriculture based country with nearly 60 percent of Indian population livelihood is dependent on agriculture. Government has for years try to create new reforms for farmers. Now government has decided to boost the overall production by improving the production per unit of land.Initiative includes good irrigation system, good transport system,good tractors at affordable rates,subsidies in oil prices and other useful measures.
Even though more than 60 percent of people are in agriculture but they contribute only 20 percent to GDP,on the other hand industry has 20 percent of India workforce and it contributes to 20 percent GDP and service sector has last 20 percent workforce and they contribute 60 percent to GDP. So the move from agriculture to industry and industry to service can really be helpful to India in a long run as, growth will increase at a greater pace but at the same time we should not forgot that to suffice, the need of food for such a large population ,India need to be self sufficient(i.e. it should not depend on import for its agriculture products).
In short term boosting farm output will reduce the current food inflation and in long run contribute to overall growth of India. India stand second in world's population but the agriculture system followed is not sufficient for its own population. Irrigation system used is far behind the age it is in today.
There are many pit falls in reforms that Government comes out with. One of them might be said that Government buy agri product from farmers at a subsidize rate and store the food after transporting it. So first government gives subsidy than it bears the cost of transportation and than the cost for storing it. Instead if government had allowed farmers to sell directly to 'mandi' at subsidized rate and pay the farmers the amount they need to make a profit(i.e. rate difference between original rate at which farmers want to sell to make a profit and the subsidized rate at which farmers has sell in market) than it can save money on transportation and storage and loss while transportation.
Nearly Eighty percent of total expenditure of rural people and nearly 60 percent of total expenditure of urban class goes in buying food products. So reforms are necessary to bring down the food inflation down to single digit by the end of this year otherwise poor will not be able to bear this inflation.