Centre to push states to increase farm expenditure

To achieve the targeted 4 per cent agricultural growth rate during the 11th Plan period (2007-12), the central government may ask states to raise their Plan expenditure on agriculture. The increase will see a matching contribution from the Centre.

The proposal would be mooted at the National Development Council meeting to be held tomorrow, a government official said.

"Some additional provisions may have to be made, as all states may not be able to spend more on agriculture in this fiscal. However, it is unlikely that the central government will spell out any details of the financial assistance at the meeting," the official added.

The Centre may also promise to spend more under the Accelerated Irrigation Benefits Programme (AIBP) with emphasis on tribal areas. It would propose new central schemes for foodgrain like rice, wheat and pulses, he said.

The council, comprising chief ministers, will also discuss a sub-committee's report on agriculture and related issues. The sub-committee was set up under the chairmanship of Agriculture Minister Sharad Pawar.

The central government will also ask state governments to formulate state-level and district-level agricultural strategy depending on the agro-climatic variations.

States will also be asked to sign MoUs with Nabard and the central government to implement the Vaidyanathan Committee recommendations and set achievable deadlines. The committee had recommended major initiatives to revamp the rural cooperative credit structure.

The Centre is expected to reiterate its stand that states should amend the Agriculture Produced Marketing Committee (APMC) Act at the earliest to encourage the development of modern agricultural markets. The Centre and the states are expected to spell out details of these proposals soon.