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Diversification into bio fuels favoured

By Our Staff Reporter

HYDERABAD, MARCH 23. The Chief Minister, Y.S. Rajasekhara Reddy, has said the rural economy is not buoyant but taking a beating for several reasons, one of which is the erratic monsoon.

The erratic monsoon had led to heavy dependence on dryland cultivation. Groundwater exploitation in dry areas for irrigation purposes had made it imminent that water recharge mechanisms were put in full operation, Dr. Reddy said at the inaugural function of the South Asia regional conference of the International Association of Agricultural Economists here on Wednesday.

He said the State had the best of the agrarian climate but feared if it was not used to good advantage, agriculture and allied products could not grow.

Dr. Reddy maintained that raising the second crop would become almost impossible if proper protective mechanisms were not there. He called for diversification into bio-diesel and ethanol if there was sufficient production of food stocks.

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