During consultations with the Planning Commission for the preparation of the Approach Paper of the Tenth five year plan, experts said a 4 per cent to 5 per cent growth rate is possible, but share of food processing sector has to be increased from the present level of 2 per cent on the lines of countries like Brazil, where it is 65 per cent of the produce.

Official sources said the experts also called for a reduction in the taxation imposed in the sector. The present incidence of taxes in the form of excise and sales tax of 16 per cent each and octroi of about 3 per cent come to an overall burden of 35 per cent, they said.

The government should impose taxes on end produce only and consider introduction of value added tax, experts suggested. The recommendations of the experts assume significance as the Commission is trying to examine the feasibility of a 9 per cent economic growth rate as directed by Prime Minister Atal Behari Vajpayee.

As per preliminary estimates prepared by the Commission, a 9 per cent GDP growth rate will require exports to grow at over 20 per cent if agriculture stagnates at its current growth rate of about 3 per cent.

However, if agriculture growth rate can be accelerated to 4.7 per cent, the exports growth rate drops sharply to 15 per cent, the sources said.

The experts pointed out that the agriculture markets in the country were fragmented and the marketing system had far too many intermediaries.

"The Agriculture Produce Market Committee's (APMC's) Act encourages commission agents," they said adding that there was also a need to deregulate the food sector.

There are over 134 orders which regulate the food industry and there is an urgency to rationalise or dispense with them especially in the wake of the WTO regime, they said.

Calling for privatisation of the reseach and development facilities in agriculture they said the network of food laboratories should be expanded and a comprehensive crop management strategy should adopted.

According to official sources, the commission has noted that although there is a considerable potential for acclerating agricultural growth in the country, including allied activities such as horticulture, animal husbandry and fishery, the pace of progress has been slow.

The commission is particularly concerned over land degradation, water depletion, inadequate market integration and inadequacy of appropriate infrastructure, sources said.

Sources added the commission was also considering the need to bring in a gradual shift in the geographical pattern of agriculture production in order to bring it in line with the resource endowments. Agriculture experts which participated in consultations with the Palnning Commission deputy chairman KC Pant, included YK Modi, R Tyagrajan of ISMA, Apeda ex-chairman Gokul Patnayak and Prof Charan Wadhwa.