Govt steps up allocation for horticulture sector

In the wake of post-harvest losses in the horticulture sector touching Rs 60,000 crore, the government has stepped up allocation for the sector and announced a five-year tax holiday for new food processing industries.

"We have post-harvest losses of about Rs 55,000 to 60,000 crore. We have to increase food processing from the current level of 1.4 per cent of the total production of fruits and vegetables", said Sharad Pawar, Union minister for agriculture, adding otherwise it would not be possible to provide better prices for farmers.

Pawar, who was replying to supplementaries during question hour in Rajya Sabha, said the government had allocated Rs 2,300 crores for the horticulture mission for the next two years.

He said a decision had been taken to provide five year tax holiday for the first five years for new food processing units in the country.Such units would also be provided 25 per cent tax exemption in the subsequent five years, Pawar said.

Pawar said the total quantity of fruit and vegetables processed during the last three years ending 2004-05 stood at 18 lakh tonne, 20 lakh tonne and 22 lakh tonne respectively.

Concerned over inadequate public and private sector investment in farm sector, government today said it had adopted a multi-pronged strategy for addressing specific segments of agriculture to ensure higher productivity.

"There is not enough public and private sector investment in agriculture sector," Pawar told the Rajya Sabha during question hour.

"The inability of Indian agriculture to withstand weather related shocks mainly reflects the fact that there has been a steady decline in public investment in real terms in agriculture, including allied sectors over successive five year plans", he said.

This in turn reflected the decline in investment in irrigation and water management schemes, Pawar added.

"With a view to increase agriculture production, government has adopted a multi pronged strategy", he said adding the government has been issuing advisories to states for promoting best farm practices among farmers to maximise production during the 2005 kharif season.

He said foodgrain stocks in the central pool as on July 1, 2005 stood at 25.11 million tonne, which was marginally short of the revised buffer norm of 26.90 million tonne.