Mr. Chairman, Mr. President, distinguished Governors, it is an honour to participate on behalf of the Government of India at the 31st Session of the Governing Council. This session sets in motion the period celebrating thirty years of IFAD. Indeed, there is ample reason to celebrate the achievements of IFAD. The year ahead will also give us an opportunity to reflect on a plan for the challenges ahead. The year-long consultation on Eighth Replenishment of IFAD’s Resources will also contribute to furthering our aspirations for IFAD and its quest for establishing sustainable livelihoods in rural areas around the world.

During the last thirty years IFAD’s involvement in funding and implementing programmes for poverty alleviation has been catalytic. Its aid has been practical in helping poor step over the poverty threshold. Yet the task remains incomplete. This is evident from the magnitude of rural poverty. The challenge therefore is to continue working and to innovate for the betterment of the rural poor.

There is fresh evidence that expanding opportunities for sustainable livelihoods in agriculture helps the largest number of rural poor cross the poverty threshold.

Increasing rural incomes from agriculture has a strong multiplier effect on economy.

This in turn generates demand for products and services in the non-farm sectors. As these can be produced locally, job opportunities for the rural poor may increase. Therefore, IFAD should continue to expand and deepen its involvement in both the farm and non-farm sectors of the rural economy with creation of sustainable livelihoods as its primary goal.

To do so, to achieve sustainable livelihoods, it is necessary to acknowledge that dependence of the rural poor on natural resources is crucial. Farming, especially on marginal and rain-fed land, depends to a large extent on continued state of good health of the adjoining forests and village commons, availability of water and good soil health. Soil moisture and protective irrigation can significantly increase productivity under rainfed conditions. IFAD projects should invariably include components that strengthen and nurture the common resources.

Perhaps IFAD projects could go further and look at the role of farmers as renderers of environmental services. This new role becomes all the more contextual as it recognizes the centrality of agriculture in the debate on climate change.

Access to the latest technology, water for irrigation and availability of credit for producing quality inputs has helped millions of smallholder farmers overcome their poverty in regions under the Green Revolution.

Still, a large number of small and marginal farmers in these areas remain poor. One reason for this is the failure to ensure remunerative market price for their produce.

In regions that have not been benefited from the Green Revolution and where rainfed agriculture is the main occupation, the smallholder farmer continues to remain poor and susceptible to climatic and market induced shocks. IFAD should continue to strengthen its programme interventions towards addressing issues of smallholder agriculturists in both irrigated and rainfed areas and pay attention to strategies that enable the smallholder farmers to participate in value chains and acquire the ability to get a good price for their produce. IFAD has in the past played a catalytic role in development of instruments for micro-credit.

The next logical step should be to see how availability of credit can be leveraged for improving market access.

Quite obviously all these areas are of concern.

They are of concern for us at this Governing Council as also for the farmers who are impacted on a more continuous basis. Some of these challenges are new, others as old as the tradition of the village itself.

For the new challenges we will have to devise innovative responses. I have referred to some already.

We also note that these areas of concern would be discussed in length in three different round tables. Such expert debate is invaluable.

But while indulging in debate and seeking new directions we need to go forward with some caution.

For instance bio-fuels may not turn out to be the panacea that they are being made out to be. There is definitely an impact on other food prices if food crops are diverted to make way for bio-fuels. There is also some doubt that bio-fuels may not be climate friendly.

Therefore in quest of the different we should not rush into a new mirage.

Moreover, while debate is good, experience is invaluable.

From ancient times, the farmer has been the respecter of elements. His decisions invariably take into account the right balance for nature. Perhaps in our debates we need to keep some space for the farmer’s wisdom and his viewpoint. What is his view on climate change, bio-fuels and food prices? More importantly, what are his needs?

Mr, Chairman, the Government of India and IFAD have developed an excellent working relationship during three decades of IFAD’s existence. This partnership has led to the implementation of many innovative projects. Now with India enjoying high rates of economic growth this partnership should break new ground. My Government is committed to ensuring that economic growth is ‘inclusive’ in character and that it results in direct economic benefits to rural families. Sustainable agriculture is a priority for us.

We also look forward to IFAD’s continuing association with us.

On behalf of the Government of India, I compliment the President, the management and staff of IFAD on the completion of three decades of meaningful service to the cause of rural development.

We look forward to the consultations for the Eighth Replenishment as an opportunity for a detailed dialogue among member states and with IFAD’s management.

We also hope that this dialogue will lead to further strengthening of IFAD’s role in the agricultural development and poverty alleviation.