The Hindu : National : Focus on water harvesting and farm extension

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Friday, Mar 02, 2007
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National

Focus on water harvesting and farm extension

Gargi Parsai

Status quo on farmers' indebtedness

NEW DELHI: Noting that the agriculture sector had witnessed sharp ups and downs, Union Finance Minister P. Chidambaram in his budget proposals said that the average agriculture growth during the 10th Plan period was estimated at 2.3 per cent, which was below the desired level of 4 per cent a year.

Announcing that the goal for doubling farm credit had been achieved before time, he set a target of achieving Rs 22,000 crore as farm credit in 2007-08 and for adding 50 lakh new farmers to the banking system. Until December 2006, 53.37 lakh new farmers were brought into institutional credit system.

Concerned over the stagnation in the production and productivity of pulses, Mr. Chidambaram proposed the expansion of the Integrated Oilseeds, Oil Palm, Pulses and Maize Development programme with sharper focus on scaling up the production of certified seeds. The government will offer a capital grant or concessional financing to double the production of certified seeds within three years. Public as well as large private sector companies would be invited to submit plans to scale up production of seeds.

Financial mechanisms would be put in place for coffee, rubber, spices, cashew and coconut on the lines of the Special Purpose Tea Fund for re-plantation and rejuvenation of tea.

Irrigation projects

To augment irrigation potential and speed up completion of water projects, the Accelerated Irrigation Benefit Programme outlay of Rs 7,121 crore in 2006-07 has been increased to Rs 11,000 crore in 2007-08. Of this the grant component to the States would be Rs 3,580 crore, an increase from Rs 2,350 crore.

He also proposed a scheme for ground water recharge by diverting rainwater into `dug wells' with each structure costing Rs. 4,000. The requirement has been assessed for two million structures. The government will provide 100 per cent subsidy to small farmers and 60 per cent to other farmers. NABARD would hold Rs 1,800 crore in escrow for disbursement to beneficiaries under the Water Resources Ministry.

Invites States

He invited State Governments to come forward with proposals for repair, renovation and restoration of water bodies for management of water resources on the lines of the loan agreement signed by the World Bank with Tamil Nadu and proposed to be signed with Andhra Pradesh. Under the Rs 2,182 crore pact with Tamil Nadu, 5,763 water bodies having a command area of 400,000 hectares would be restored. The Andhra Pradesh agreement, to be concluded in March, would cover 3,000 water bodies with a command area of 250,000 hectares. Similar projects are being finalised with Karnataka, Orissa and West Bengal.

In addition, the ICAR would set up teaching-cum-demonstration models of water harvesting in 32 selected State Agriculture Universities and ICAR institutions. To strengthen extension the Agriculture Ministry would work out a Training and Visit programme in 300 districts. The outlay for this has been raised from Rs. 50 crore to Rs. 230 crore. Mr Chidambaram has reduced the duty on drip and sprinkler irrigation and food processing machinery from 7.5 to 5 per cent.

He maintained a "status quo" on crucial areas. For instance, he announced that the interest subvention scheme for short-term crop loan; the National Agricultural Insurance Scheme, the Rehabilitation Package for Farmers in 31 suicide districts would "continue."

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