Heated debate on agriculture at conclave

While Congress President Sonia Gandhi said today that she and her party colleagues were "satisfied" with the performance of the UPA government and Prime Minister Manmohan Singh, proceedings at the Congress chief ministers' conclave here told a different story.

The highlight of the discussion on agriculture at the conclave was a verbal duel between AICC general secretary Digvijay Singh and Finance Minister P Chidambaram who was handling all queries on agriculture.

As the FM was non-committal on Congress leaders' demand to waive off interest on agriculture loans and also write off the non-performing assets of co-operatives and societies, Singh was learnt to have shot off, "You can write off the NPAs of corporates (NPAs of commercial banks), but you have a problem with farmers' co-operatives."

Chidambaram replied that it was a state subject. At this point Andhra Pradesh CM YSR Reddy, Maharashtra CM Vilasrao Deshmukh and Haryana CM Bhupinder Singh Hooda joined in demanding Central assistance to write them off.

"You cannot call it hot talk. Digvijay Singh was only asking questions, as were others," a Congress leader present in the meeting told Business Standard.

Some leaders demanded a one-time settlement of farmers' debts. Many Congress CMs demanded that the interest rate on farm loans be further reduced from 7 per cent. The FM told them that their suggestions will be considered by the government.

Congress leaders questioned the government's policy on procurement that led to imports. They wanted the minimum support price to be reviewed so that farmers did not sell their produce to private players only.

Agriculture Minister Sharad Pawar, however, wouldn't mind such criticism as Congress President Sonia Gandhi gave him a clean chit today. "Agriculture Minister is working in an extremely effective manner," she said.

Asked about some Congressmen's doubts- expressed at the meeting during discussion on farmers' suicide- about the efficacy of the Vidarbha package, Prime Minister Manmohan Singh said at a press conference that the government had gone for a short and a medium-term strategy and it will be over a period of time before the full impact is visible.

The PM said that when he had embarked on economic reforms in 1990s, the government could not pay as much attention to some sectors like agriculture and education as it should have. But, the UPA regime is trying to make up for it now. He said that the valuable inputs received at the conclave will be given due consideration in the XIth Plan.

Hooda and his Punjab counterpart Capt. Amarinder Singh wanted zone specific MSP. Hooda wanted that interest subvention at a rate of 2 per cent provided to Scheduled Banks be also extended to cooperative banks.