In the second five year plan the agriculture received somewhat lower priority vis-a-vis indus­try. Out of the total plan outlay of Rs. 4600 crore it was allocated Rsl 950 crores (20.6%); of which Rs. 420 crores were spent on irrigation. This led to the creation of additional 85. lakh hectares of irrigation potential and a reclamation of 4.8 lakh hectares of additional land for agriculture.

Although the agri­cultural production registered a growth of 4.1 % per annum and the production of food grains increased to 82 million tons by 1960-61 (an increase of 24.6% over 1955-56) it along with oil seeds, cotton and jute was far below the plan target. Only the production of sugarcane was above the plan target. The poor per­formance of the agriculture due to lower priority and drought conditions (1957-58 and 1959-60) led to price rise, import of food grains and instability in the economy.