AP action plan for agriculture with an outlay of Rs 25,962 cr

The 2013-14 outlay for agriculture includes plan component of Rs 17,694.71 cr and non-plan component of Rs 8.267.41 cr

For the first time in Andhra Pradesh, an exclusive action plan for agriculture envisaging an outlay of Rs 25,962 crore was presented in the state Legislative Assembly by agriculture minister, Kanna Lakshmi Narayana, on Monday.

The 2013-14 outlay for agriculture includes plan component of Rs 17,694.71 crore and non-plan component of Rs 8.267.41 crore. Supplementary to these proposed budgetary allocations, an amount of Rs 72,450 crore has been allocated under the agricultural credit plan. This would make the total investment for the agriculture sector as Rs 98,940.54 crore as against Rs 79,924.78 crore in 2012-13, an increase of about 24%.

Presenting the action plan immediately after the finance minister's Budget speech, Laxminarayana said the objective of preparation of a separate plan for the farm sector was to achieve sustainable development in agriculture and allied sectors without any ambiguity.

However, according to the plan, more than half of the total outlay amounting to over Rs 14,679 crore will be allocated for continuing the implementation of various irrigation programmes. The next major allocation of Rs 3,621.99 crore is towards power subsidy  followed by Rs 2,903.5 crore for improving the productivity and production of rainfed areas.

The minister said an amount of Rs 100 crore would be set up as market intervention fund to provide price support and ensure that prices of important crops like paddy, jowar, maize, ragi and pulses do not fall below the minimum support price.

He also earmarked Rs 517.42 crore for horticulture development and Rs 120 crore for promoting establishment of oil palm processing plants , rice bran oil mills and oleoresins and spices (chillies and turmeric) oil extraction units.

The minister said the state had targeted to increase foodgrain production to 30 million tonnes (mt) per annum by 2016-17. Due to damage caused by Nilam cyclone last year, foodgrain production in the state was estimated to decline to 17.82 mt in 2012-13 as against a normal of 18.90 mt.

A controversy broke out in the House on whether what the minister presented was a separate budget for agriculture or an action plan.  Following objections raised by some of the Opposition members that presentation of a separate budget was contrary to the provisions of the Constitution, finance minister, Anam Ramnarayan Reddy, clarified it was only an action plan and the word "budget" in the speech copies circulated to the members was a printing mistake.