It was recognised that the prime concern of the Governments was the insulation of the poor and the vulnerable from adverse price movements. This responsibility has to be shared by the Government at the Centre and in the States as a coordinated approach has to be adopted to tackle the issue. The deliberations of the conference focused on short term measures and long term strategies to ensure food security by increasing production and productivity of foodgrains so as to meet the demand in the context of the growing economy and rising income, particularly in rural areas in view of implementation of schemes like NREGS, as well as on the need to foster a dynamic relationship between Centre and the States. It was noted that the wide gap between the crop yields obtained in frontline demonstrations on the farmers fields and the average yields at farmers' field in almost all the States, as well as inter-state differences in the yield gap can be bridged by proper implementation and monitoring of the Central and State Government schemes.

With the year 2009 recording the worst monsoon that India has had since 1972, the price rise of key essential commodities, such as rice, wheat, pulses, vegetables and sugar, the reasons for the same as well as the measures initiated by Central and State Governments to contain the price rise were important issues that were deliberated in the conference. The reasons for the price rise were identified as being due to hikes in MSP, supply constraints of certain commodities, increase in the international prices, increase in demand on account of increase in the purchasing power, more liquidity in the system, in addition to inefficiencies in agricultural marketing and the high cost of intermediation.

It was acknowledged that the increase in prices on account of the hikes in Minimum Support Prices (MSP) is desirable as it has translated into higher production, procurement and domestic stocks of wheat and rice. The highest ever procurement since Independence, has led to a comfortable stock position and no shortage of foodgrains in the country. In this context while the excellent support from the state governments in reaching this landmark was acknowledged, the need for continued effective enforcement of the Minimum Support Price mechanism for agricultural produce by organizing procurement operations in time was highlighted. The Government of India would use the large stocks of wheat and rice available with it to ensure supplies to the Public Distribution System as well as for open market operations wherever appropriate.

While it was recognised that India cannot remain immune to the global price situation, the conference underscored the need to understand better the nature of the problems and the respective roles to be played by the Government of India and the State Governments in containing the price increase. Government of India has taken fiscal, administrative as well as monetary measures to counter inflation. The RBI has been changing its policy from easy to tight monetary policy, in keeping with the prevailing situation, without endangering growth of the economy. Apart from the short terms measures to contain this increase in prices it is also important to take steps for the longer term perspective of increasing production especially of edible oil and pulses.

In order to achieve the targeted agricultural growth, it was agreed that convergence among ongoing Central and State Government Schemes for development of agriculture and allied sector, strengthening implementation of Rashtriya Krishi Vikas Yojana (RKVY), organizing compensatory seed production programmes in Rabi/Summer season 2009-10, gearing up the administrative machinery to prepare alternative cropping plans for the contingency scenarios of normal, high and low rainfall situations during Kharif 2010 season as well as improving access of small and marginal farmers to the institutional credit had to be ensured by all stakeholders.

The State Governments' role in ensuring that food articles imported or distributed through the Public Distribution System quickly reach the intended beneficiaries was highlighted. Thus better targeting and strengthening of PDS, better procurement, better offtake of the commodities which are offered is the need of the hour. There was consensus that timely and accurate data from the states was essential for proper policy interventions at the national level. It was also felt that there is a need to implement agricultural market reforms so as to improve marketing opportunities for farmers and minimize the cost of intermediation in the supply chain by using co-operatives and other institutions to and reduce the gap between wholesale and retail prices and to stabilise prices. In this context the States agreed to give this subject the highest priority in the coming months. Government of India would give the State Governments all requisite support in this task.

At this critical juncture, the conference advocated a paradigm shift by bringing back 'agriculture' to the centre of the agenda. The role of state governments in enhancing productivity levels by using improved technology, through dovetailing the state schemes with the Government of India schemes as well by strategising for the next agricultural revolution was highlighted.

The conference recommended the constitution of a Standing Core Group of State Chief Ministers and concerned Central Ministers. This Core Group will deliberate on and recommend measures to

(i) Increase agricultural production and productivity(including long term policies for sustained agricultural growth);

(ii) Reduce the gap between farmgate prices and retail prices;

(iii)Better implementation of and amendment to E.C. Act;

(iv) Ensure better and effective delivery of essential commodities to the vulnerable sections of society;

(v) Augmentation of warehousing and storage capacity (including cold chains);

(vi) Issues relating to inputs viz. seeds/fertilizers etc.

The Government of India has agreed to constitute the Core Group.#