New Delhi, Feb 28 (UNI) Despite the government's admission about low farm growth rate and increasing rural indebtedness driving farmers to suicide, the Budget for 2007-08 has not brought any major relief for the ailing agriculture sector barring the strengthening of existing programmes on farm credit and water management fronts.
On an average agriculture growth has been estimated at 2.3 per cent, below the desired level of 4 per cent which Finance Minister P Chidambaram confessed had pushed price instability and inflation.
For improving the ''economic viability of farming and ensure that farmers earn a minimum net income'', the Finance Minister announced the continuation of two per cent interest subvention (subsidy) for short-term crop loans for 2007-08 by allocating a sum of Rs 1,677 crore for the purpose. And 50 lakh new farmers will be brought into the banking system next year with a target of Rs 2,25,000 crore as farm credit. The government has already achieved its targeted doubling the institutional credit with crossing the last year's target of Rs 75,000 crore.
Concerned over low production and short domestic supply of pulses and edible oilseeds particularly, Mr Chidambaram announced expanding the Integrated Oilseeds, Oil Palm, Pulses and Maize Development Progamme involving ICAR, IFFCO, Kribhco and some agricultural universities in an public-private-partnership programme for production of certified seeds within three years. For past several years, the country has been importing oilseeds and pulses valued at least Rs 15,000 crore a year.
Since the edible oilseeds and pulses are grown in unirrigated areas, the government has already established National Rainfed Area Authority. But, the Budgetary allocation for the ambitious rainfed area development programme for 2007-08 is a meagre Rs 100 crore.
And, the watershed programme, the biggest contributor to the development of dryfarming has been bid a goodbye in the Budget.
However, for irrigation, the Budget has increased allocation under the Accelerated Irrigation Benefit Programme (AIBP) from Rs 7,121 crore to Rs 11,000 crore with a grant component of Rs 3,580 crore from States. Besides that, the Budget laid thrust on restoration of water bodies and asked the State governments to submit proposals to World Bank for grant of loan for this purpose as did by Tamil Nadu by procuring a loan of Rs 2182 crore.
MORE UNI
On an average agriculture growth has been estimated at 2.3 per cent, below the desired level of 4 per cent which Finance Minister P Chidambaram confessed had pushed price instability and inflation.
For improving the ''economic viability of farming and ensure that farmers earn a minimum net income'', the Finance Minister announced the continuation of two per cent interest subvention (subsidy) for short-term crop loans for 2007-08 by allocating a sum of Rs 1,677 crore for the purpose. And 50 lakh new farmers will be brought into the banking system next year with a target of Rs 2,25,000 crore as farm credit. The government has already achieved its targeted doubling the institutional credit with crossing the last year's target of Rs 75,000 crore.
Concerned over low production and short domestic supply of pulses and edible oilseeds particularly, Mr Chidambaram announced expanding the Integrated Oilseeds, Oil Palm, Pulses and Maize Development Progamme involving ICAR, IFFCO, Kribhco and some agricultural universities in an public-private-partnership programme for production of certified seeds within three years. For past several years, the country has been importing oilseeds and pulses valued at least Rs 15,000 crore a year.
Since the edible oilseeds and pulses are grown in unirrigated areas, the government has already established National Rainfed Area Authority. But, the Budgetary allocation for the ambitious rainfed area development programme for 2007-08 is a meagre Rs 100 crore.
And, the watershed programme, the biggest contributor to the development of dryfarming has been bid a goodbye in the Budget.
However, for irrigation, the Budget has increased allocation under the Accelerated Irrigation Benefit Programme (AIBP) from Rs 7,121 crore to Rs 11,000 crore with a grant component of Rs 3,580 crore from States. Besides that, the Budget laid thrust on restoration of water bodies and asked the State governments to submit proposals to World Bank for grant of loan for this purpose as did by Tamil Nadu by procuring a loan of Rs 2182 crore.
MORE UNI
Oneindia Login