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.