The Hindu : National : Chidambaram: budget focus on farming sector

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Wednesday, Jan 11, 2006

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Chidambaram: budget focus on farming sector

Special Correspondent

Efforts to be made to boost agricultural sector

P. Chidambaram

NEW DELHI: Finance Minister P. Chidambaram on Tuesday assured agriculturalists that the United Progressive Alliance Government's concern over poor infrastructure and emphasis on boosting the farm sector would be reflected in the Budget.

At the pre-budget consultations with agriculturalists here, Mr. Chidambaram reiterated that the Budget for 2006-07 would accord "very high importance" to the interests of the farming community. Emphasis would be laid on food processing by way of greater incentives for setting up units, and completion of irrigation projects along with better infrastructure.

This measures were be necessary as the foodgrains prospects in the just-ended kharif season would not be too good and the growth would be just 1.1 per cent due to the adverse climatic conditions. The Government, he said, was aiming for a three per cent farm sector growth on hopes of a far better show during the rabi season as a consequence of the late monsoon rains.

Speaking to newspersons after the meeting, the Chairman and Managing Director of Cargill India Ltd. Hardeep Singh, said: "We had a good interactive session with the Finance Minister and discussed many points."

During the discussions, the farm sector participants had sought adequate and quality power supply, better irrigation facilities and remunerative prices for their produce.

To tide over the problems in irrigation, the farming sector demanded incentives for building their own tanks for easy availability of water. This could be funded through concessional bank loans with a 50 per cent subsidy from the Centre.

According to Chairman of the Federation of Oilseeds Cooperative Growers of India Venkata Rao Nadagouda, Mr. Chidambaram promised to look into this demand. He also quoted the Finance Minister as saying that certain value added farm products could be brought under the tax net.

The farming experts also sought larger capital investment for overall growth of agriculture and urged the Finance Minister to undertake urgent steps to ensure that the intended subsidies reached the poor farmers.

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