Four-pronged strategy to spur farm sector growth -Governance Now

Four-pronged strategy to spur farm sector growth

GN Bureau | February 26, 2010

Finance Minister Pranab Mukherjee, in his budget speech, has outlined a four-pronged strategy to spur growth in the farm sector. He said the government would focus on raising agriculture production, reduction in wastage, credit support to farmers and thrust to the food processing sector.

“The first element of the strategy is to extend the green revolution to the eastern region of the country comprising Bihar, Chhattisgarh, Jharkhand, eastern UP, West Bengal and Orissa. For the year 2010-11, I propose to provide Rs 400 crore for this initiative," he said.

He also proposed to organise 60,000 "pulses and oil seed villages" in non-irrigated areas during 2010-11, in order to raise output of pulses and oilseeds where there is a deficit and country is dependent on import. For this purpose, he has provided Rs 300 crore in the budget and said the initiative will be an integral part of the Rs 25,000 crore Rashtriya Krishi Vikas Yojana.

An allocation of Rs.200 crore has also been provided for sustaining the gains already made in the green revolution areas through conservation farming.

The second element of the strategy relates to reduction of significant wastage in storage as well as in the operations of the existing food supply chains in the country. The deficit in storage capacity is met through an ongoing scheme for private sector participation where the FCI has been hiring godowns from private parties for a guaranteed period of 5 years. This period has been extended to seven years.

The third element of the strategy relates to improving the availability of credit to farmers. The banks have been consistently meeting the targets set for agriculture credit flow in the past few years. For the year 2010-11, the target has been set at Rs.3,75,000 crore.

The fourth element of the strategy aims at lending a further impetus to the development of food processing sector by providing state-of-the-art infrastructure. In addition to the 10 mega food park projects already being set up, the government has decided to set up five more such parks.

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