Union Government has announced new National Agricultural Policy in the parliament on July 28, 2000.
This policy has been planned under the provisions of “World Trade Organisation”.
The National Policy on Agriculture seeks to actualise the vast untapped growth potential of Indian agriculture, strengthen rural infrastructure to support faster agricultural development, promote value addition, accelerate the growth of agro business, create employment in rural areas, secure a fair standard of living for the farmers and agricultural workers and their families, discourage migration to urban areas and face the challenges arising out of economic liberalization and globalisation.
The salient features of the new agricultural policy—
[a] Over 4 per cent annual growth rate aimed over next two decades.
[b] Greater private sector participation through contract farming.
[c] Price protection for farmers.
[d] National agricultural insurance scheme to be launched.
[e] Dismantling of restrictions on movement of agricultural commodities throughout the country.
[f] Capital inflow and assured markets for crop production.
[g] Exemption from payment of capital gains tax on compulsory acquisition of agricultural land.
[h] High priority to rural electrification.