Agriculture Minister Sharad Pawar has expressed confidence that agriculture sector will grow at an average rate of 4 per cent yearly in the 12th five year plan. Speaking at the Economic Editors Conference in New Delhi today Mr Pawar said it was 3.3 per cent in 11th plan. He said that high moisture content in soil will be fully exploited to maximise crop production in the coming rabi season. The Minister said despite erratic monsoon this year there has been only marginal decline in the food grain production as compared to last year, which was a year of record production.

Mr Pawar said that FDI will help in providing good prices to farmers and better choice and low prices to consumers. He said that it will reduce post-harvest losses significantly and help farmers in getting better prices.

Recognising the need to step up investment in the agriculture sector, he said FDI will help in developing seed,

post harvest management infrastructure and now in multi-brand retail trading (MBRT), subject to setting up the back-end infrastructure.

Mr Pawar had earlier also supported the government's

decision of allowing 51 per cent FDI in multi-brand retail saying that it will boost investment in cold-chain facilities

and bring down post-harvest losses.

The Minister also informed that a National Mission of Food Processing has been launched to invigorate the food processing sector.

He said that the government will continue to export farm items like cereals, sugar and cotton because the

switch-on and switch-off policy brings disrepute to the country.

Mr Pawar said the time has come to frame long-term export- import policy for agri-items and the government is moving towards that direction, evident from the fact that the country has not banned shipments of any items during the last two years.