"What do farmers need - A lower rate of interest or reliable access to credit at reasonable rate?... Do we need to bring in money lenders under some form of regulation", he asked as he inaugurated the second agriculture summit in New Delhi.
"It is necessary that we find answers to these questions in near future", the Prime Minister said, adding that "there is a crisis in agriculture in many regions of the country".
On checking inflation, which is hovering above 5 per cent now, he said: "While the government will do whatever is necessary to keep prices under check and ensure moderate rates of inflation, we cannot sacrifice the interests of the farming community".
He also wanted suggestions on enhancing the institutional framework such as for the self-help groups and micro-finance institutions for improving the lot of farmers.
Concerned over the rural-urban divide and the immigration of rural population to towns and cities, the Prime Minister highlighted four areas of deficit that needed to be bridged for enhancing productivity and output.
"These four deficits are public investment and credit deficit, the infrastructure deficit, the market economy deficit and the knowledge deficit", he said, adding that the UPA government was committed to providing farmers, access to adequate and affordable credit.
He said an expert group has been set up to look into the problems of agricultural indebtedness in its totality and suggest measures for providing relief to farmers across the country.
Singh said the proposed National Rainfed Area Authority would promote knowledge-based interventions covering all aspects of agriculture in rainfed areas. "We need greater application of technology to improve farming of many crops, particularly in dry land areas. A renewed thrust has to be given to research in dry land farming, with a focus on farming systems as a whole".
"We need a balanced approach where we provide for food security of the poorest sections without compromising the returns to farmers. While the government will do whatever is necessary to keep prices under check and ensure moderate rates of inflation, we cannot sacrifice the interest of farming community", he said.
The Prime Minister said the strategy for agricultural development would be based on improving the real incomes and the quality of life of the farming community.
On the initiatives taken by the government in the last two-and-half years, Singh said the coalition had been able to achieve the target of doubling institutional agricultural credit in just two years as against the planned three years.
Besides, he said the cooperative system is being revived through a Rs 13,000 crore (Rs 130 billion) package.
To address the situation of agricultural distress, a package has been put in place for some districts in Maharashtra, Andhra Pradesh, Karnataka and Kerala.
He said a new deal for rural India and the second green revolution can be achieved by strengthening rural infrastructure, improved marketing facility and better irrigation.
Dwelling at length on the plight of farmers, Singh said: "The more I travel to interior areas and the more I meet farmers there, I get the feeling that in many parts of the country, agriculture is being carried out in adverse conditions".
What is needed is sustained efforts spread over a few years so that subsistence farmers can be pulled out of their marginal existence, while advanced farmers are propelled on to the global platform, he said.
"This is the real challenge for agriculture in the next decade", he said. Earlier, Agriculture Minister Sharad Pawar said farm economy was showing signs of revival with the 3.4 per growth during the first quarter of the current financial year. Agriculture growth during 2006-07 stood at 3.9 per cent.
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