Budget to focus on farming: FM

RUN UP TO BUDGET 2006

Finance Minister P Chidambaram today proposed that value-added agriculture products be brought in the tax net and said areas such as irrigation would receive focused attention in the forthcoming Budget.

Interacting with agriculturists on the second day of the sector specific pre-Budget discussions, the finance minister said the government would focus on sectors such as food processing and irrigation and emphasise on better infrastructure for triggering high growth in these sectors.

The agriculturists raised several demands, including the enhancement of remunerative price, better power supply and irrigation facilities. The issue of food subsidy, was, however not discussed.

"We had a good interactive session with the finance minister and discussed many points," Hardeep Singh, Cargill India Ltd chairman and managing director, told reporters after the meeting.

Federation of Oilseeds Cooperative Growers of India Chairman Venkata Rao Nadagouda said he suggested that incentives be given to farmers to build their own water tanks.

"This can be done through 50 per cent subsidy from the government and 50 per cent concessional loans from banks at par with the Grameen Bhandar Yojana, which has been in operation for the last two years," he said, adding that Chidambaram assured him that the demand would be considered.

The agri experts also demanded greater capital investment for the all-round development of the sector.

The participants asked the finance minister to take measures to ensure that subsidies reached poor farmers. Kanodia Omparkash, representing a non-government organisation, sought concessional loans for farmers.

He said subsidies targeted for peasants never reached them and hence there was a need to provide direct subsidies in the form of concessional credit.