Punjab farm economists gave a thumbs down to the Union Budget presented by Finance Minister Pranab Mukherjee today for its failure to include a special package to revive the state's agriculture sector.
"Punjab is completely ignored in the Union Budget as it failed to offer any (special) package to boost the state's farm sector," noted economist R S Ghumman said today.
Economists, as well as farmers, have been pitching for a special economic package to rejuvenate Punjab's agriculture sector, which is plagued with stagnant food grain yields, deteriorating underground water resources and mounting debt, which is reflected in its declining share of the Gross State Domestic Product (GSDP).
Asserting that new technology was a crucial for achieving a Second Green Revolution in country's farm sector, he said no funds were allocated in the Union Budget to give a fillip to research and development activity in the farm sector.
"Sadly, the government failed in stepping up the research and development activity, which is required at this juncture to boost the farm output in the country in the wake of rising commodity prices," he said, adding that Punjab Agricultural University could have been given funds for research and development purposes.
Farm production in Punjab, which contributes 50% of the wheat and 30% of rice in the central pool on average, has reached a plateau, with soil health deteriorating due to intensive wheat and rice cultivation.
The average yield of wheat and paddy has been hovering at around 43 quintals and 58 quintals per hectare for the past several years.
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The farm sector in Punjab has been showing dismal performance for the past many years, with its share of the GSDP declining from 26.27% in 1999-2000 to 19.49% in 2008-09. The growth of the agriculture and allied sector fell to 3.42% in 2008-09 from 5.77% in 2003-04.
However, a hike in the interest subvention on short-term crop loans by 1% was hailed by the farm experts, who stated that it would encourage farmers to pay back loans regularly.
"It (interest subvention) is a good step taken by the Union Budget... It will encourage farmers to pay loans regularly to avail a low rate of interest," said Sucha Singh Gill, the Director General of the Centre for Research in Rural and Industrial Development (CRRID).