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NEW DELHI: Although 2006 would be remembered as a year of farmers' suicides, crippling shortage of wheat stocks leading to massive imports, skyrocketing prices of essential commodities and culling of 10 lakh poultry in bird flu-affected districts, the Ministry of Food, Agriculture and Animal Husbandry described it as a "year of challenges and new initiatives."

Ups and downs

For the farmers, 2006 was a year of sharp ups and downs. The downside was the un-abating farmers' suicides from drought-prone and water-stressed districts. For the Above Poverty Line beneficiaries of the Public Distribution System, there was a cut in the allocation of wheat on account of low stocks. The upside, Ministry officials asserted, was the beginning of better prices for farmers for their produce from private traders and multi-national companies who entered the fray this year.

Rs.16,978 cr. package

Stung by large-scale suicides by farmers, Prime Minister Manmohan Singh visited Vidarbha in Maharashtra. The Centre announced a Rs. 16,978.69-crore rehabilitation package for farmers in the four States of Maharashtra, Karnataka, Andhra Pradesh and Kerala that included a subsidy and grant component of Rs. 10579.43 crore and loans to the tune of Rs. 6399.26 crore.

The National Commission on Farmers, chaired by M.S. Swaminathan, submitted its report recommending a National Policy on Farmers to address human resource issues.

During the year, a Rs. 568.23 crore National Bamboo Mission was set up to promote development of bamboo sector, increase the area under bamboo and generate employment.

Funds for the National Horticulture Mission, launched last year, were enhanced by over 30 per cent to Rs. 1000 crore. A Central Institute of Horticulture was established in Nagaland.

A National Rain-fed Area Authority was created to support upgradation and management of dryland and rain-fed agriculture and for converging various schemes in watershed development. A micro-irrigation scheme was launched this year to promote water efficiency in farming activities.

Modern markets

To facilitate the setting up of retail chains, the Agriculture Ministry took the initiative to promote modern terminal markets in important cities for fruits, vegetables and other perishables. These markets would provide modern facilities for electronic auction, cold chains and necessary logistics to farmers to sell their produce.

Farm credit up

One of the highlights is that farm credit from institutions has already crossed Rs. 1.14 lakh crore by October 2006, compared to Rs 1.68 lakh crore in 2005-06. The target of Rs. 1.75 lakh crore for this financial year is likely to be achieved. Over 48 lakh new farmers had availed loans from banks and cooperatives by October.

Interest waiver

Starting from Kharif 2006-07, the rate of interest on crop loans up to Rs. 3 lakh was reduced to 7 per cent from 9 per cent. The Government also finalised a Rs. 13,596 crore package for revival of the short-term rural cooperatives credit structure for reforms in the sector.

A constitution amendment bill has been introduced in the Lok Sabha in May 2006 for empowering cooperatives.

In Animal Husbandry, Dairying and Fisheries sector, the year was marked by spread of bird flu (Avian Influenza) in parts of Maharashtra, Madhya Pradesh and Gujarat. Several steps were taken to control the influenza including culling of over 10 lakh birds and destruction of 8,546 tonnes of feed and feed ingredients.

A relief and rehabilitation package was announced for the poultry industry that included credit relief and provision of maize at concessional rates.

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