Prime Minister Manmohan Singh on Tuesday announced a Rs 25,000 crore (Rs 250 billion) plan for boosting farm sector growth by addressing the needs at the grass-root level during the next four years.

"The Centre will commit funds if states maintain their baseline levels of expenditure. This will ensure greater public investment in agriculture," he said in his concluding remarks at the 53rd meeting of the National Development Council.

He said the Centre will commit over Rs 25,000 crore in the coming four years and that the Planning Commission and the agriculture ministry will finalise details of this programme in the next two months.

The plan seeks to encourage states to come up with localised solutions for problems faced by the agri-sector.

Besides, a Food Security Mission would be announced to raise the production of wheat, rice and pulses and reduce the country's dependence on imports of basic commodities, he said.

Earlier, the NDC adopted a resolution to raise wheat production by 8 million tonne, rice by 10 million tonne and pulses by 2 million tonne over the next four years.

He said the 4 per cent target growth of agriculture and allied activities was achievable "if we are willing to take tough decisions and follow it up with actions."

Singh also asked Finance Minister P Chidambaram to ensure all eligible farmers are covered under institutional credit mechanism in the next four years.

Commenting on food security, the prime minister said a mission would be launched in the coming months which would reduce country's dependence on imports of basic commodities such as rice and wheat.

The NDC has also allowed states to draw their own agricultural plans, but the states will have to maintain baseline level of expenditure.

The chief ministers of the various states have been asked to come up with improved delivery system for agricultural subsidies.

Earlier, the government said that it was open to providing additional resources to the states to help them

implement a proposed mission for increasing production of

wheat, rice and pulses -- spurt in whose prices has been

driving inflation up.

Attributing high inflation to rise in prices of primary

articles including food items, Chidambaram said there is an emerging consensus between the Centre and the states on launching the mission.

"It is in our common interest that we agree on a plan of action for central government and state government (for the proposed mission) and implement it without hindrance," he said addressing a meeting of the 53rd National Development Council.

"I realise that when we launch the mission, there will be demand for more funds. . . hence, I would support the proposal to provide additional resources and transfer the same through the method of additional central assistance," Chidambaram said.

Agriculture suffering from technology fatigue: PM

Worried over slowdown of agriculture sector due to "technology fatigue," the prime minister assured the chief ministers that the Centre was willing to support their plans for enhancing productivity in the segment.

Stating that small and marginal farming had become an unviable proposition, the prime minister told the 53rd meeting of the National Development Council (NDC) that until farming was made viable at this scale, it would be virtually "impossible" to reduce rural poverty and distress.

He said the public and private investment in agriculture sector should be seen in the context of a larger trend whereby subsidies have been increasing and investments declining.