The State Agriculture Policy aims to address various interlinked concerns of sustainability of the current cropping pattern and stagnating farm incomes through a simultaneous and multi-pronged action with an emphasis on improvement in production technology and infrastructure, pushing up capital formation, re-structuring the incentives and streamlining the institutions. At present the agriculture has reached high level of productivity and the current growth rate for the last five years has been 1.6%. Against this base, this policy paper proposes to attain a long term growth rate of 3% per annum in the agricultural sector including dairy with technologically feasible, economically viable and environmentally sustainable initiatives. This growth should be inclusive and demand driven so as to cater to the needs of domestic and international market while remaining alert to the emerging trade environment which is offering many new opportunities as well as posing new challenges.