IIF, Delhi: 3rd Dec., 2007; What feeds the world and the nations unfortunately is not fed the same way in a reciprocal way by society said Prof. J.D. Agarwal, Chairman, Indian Institute of Finance while delivering the Chief Guest address on Innovations & Developments in Financing and Investment in Agriculture and Rural Development during the 50 years celebration conference at Faculty of Economics and Social Sciences, Szent Istvan University, Hungary today.

Agriculture and rural development has not attracted the desired investment and the financing pattern is largely traditional. The funding available to agriculturists, their resource position, education, dependence on nature and natural resources, poor returns on investment and such other factors has not attracted desired investment and other resources in this most natural occupation of the world opined Prof. Agarwal.

According to Dr. Agarwal, some of the emerging needs for enhancing innovations and development for both rural and agricultural regions are innovations to meet climate change, energy needs through renewable sources, creative means to counter un-employment; needs to be globally inter-connected simultaneously taking care of global financial disturbances; inducing non-inflationary growth; innovations to counter terrorism and money laundering and creating opportunities to make them self sufficient and resource generators.

A serious strategy formulation and implementation can greatly help to avert decline of contribution of agriculture to GDP world over. Multi-pronged strategy promoting micro credit in rural areas is the need of the hour feels Prof. Agarwal.

According to him, governments in general acts as provider rather than facilitator or both by creating appropriate opportunities to uplift the quality of life of people resulting in rural development. Prof. Agarwal, advocated introduction of hybrid financial products for agricultural development and setting up an agency to take care of the functioning of such hybrid products. Providing latest technical know-how to boost productivity, extensive schemes of Insurance of Crops, agriculturists and rural people and funding schemes for coping with disaster management affecting farmers such as Tsunami, famines and droughts should be considered seriously by the governments. Prof. J.D. Agarwal strongly emphasized the need to set up a fund or setting up a Bank for Reconstruction and Development of Agriculture and Rural Development, with an endowment fund or seed capital from government together with private partnership with a view to provide loans at cheap rates to take care of financing needs of farmers and rural people adversely affected by natural or man made disasters.

Speaking on Indo Hungarian Initiatives, Prof. Agarwal said India and Hungary have similar challenges before agriculture and rural development. Both countries have seen boost of Agriculture and empowerment of society with enhanced flow of trade, services and products. A large number of areas like energy, organic agriculture, agro-based industries, healthcare and education are some key areas where the two nations may want to consider working together to enhance socio-economic setups in the two regions.