21.6 per cent hike in central plan allocation.
THE AGRICULTURE sector is in for a major push with an unprecedented 21.6 per cent hike in the central plan allocation to address the supply side constrains that have led to high food inflation.
Besides measures to boost production, stress has been laid on opening up of retail trade to reduce the wide differences between the farm gate, wholesale and retail prices. Tax sops have also been proposed for infrastructure to facilitate storage and safe handling of perishable foods till the retail points.
A four-pronged strategy has been mooted in the Budget to spur growth in farm production. It involves measures to raise agricultural production; reduce wastages; strengthen credit support to farmers; and lend a thrust to the food processing sector for value addition of farm produce.
The central plan allocation for 2010-11 for the agriculture and allied sectors has been raised by Rs 2,185 crore to Rs 12,185 crore. It was Rs 10,123 crore in 2009-10 (revised estimates).
The food supplies are proposed to be augmented by extending the green revolution to the eastern states of Bihar, Chhattisgarh, Jharkhand, West Bengal and Orissa and eastern Uttar Pradesh. Rs 400 crore have been set apart for this purpose.
More From This Section
About 60,000 villages are proposed to be selected for devoting exclusive attention to producing more pulses and oilseeds in the dryland areas through better water conservation measures. A sum of Rs 300 crore has been fixed for this scheme.
The next year’s target for total credit flow to the farm sector has been raised to Rs 3,75,000 crore from Rs 3,25,000 crore in the ongoing fiscal to improve farmers’ access to credit. Besides, the debt waiver and debt relief scheme has been liberalised further by giving the farmers six more months, till June 30, 2010, for repaying the outstanding loans to get concession on the interest. The interest subvention for the farmers who repay their debts in time has been stepped up from 1 per cent earlier to 2 per cent.
To lend impetus to the food processing sector, five more mega food parks are planned to be set up. These will be in addition to the 10 already being put up for value-addition of farm produce.
Service tax concessions, including exemptions, have been proposed for seed certification and transportation of cereals and pulses.