The Hindu : Business : `Do not toe the official line while analysing budget'

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Wednesday, Mar 07, 2007
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`Do not toe the official line while analysing budget'

Special Correspondent

Ex-banker blames low prices for farmer suicides

KOCHI: K.P. Padmakumar, former Chairman of Federal Bank, has called upon management students to look at the Union Budget through a different approach and not to toe the official line.

He was addressing students of the Rajagiri School of Management at a meeting organised by The Business Line Club here on Tuesday.

Detailing the strength of the nation where the fundamentals of the economy were in a sound footing, Mr. Padmakumar said Union Finance Minister P. Chidambaram could have taken a more "courageous step" to lead the country into a different orbit of growth.

He said the budget had higher allocations for farm credit and programmes aimed at developing the agricultural and rural sectors.

However, it was not the poor availability of credit or indebtedness that was responsible for farmers committing suicides, but lack of remunerative prices, adequate infrastructure to store the produce, including perishables, and marketing problems. Therefore, development of the rural sector for helping the farmer in cultivation, irrigation, harvesting, post-harvest technology and marketing of produce at remunerative prices acquired importance.

Though there were provisions made for some of these issues, there should have been an effective mechanism to take these benefits to the right beneficiary, he said.

The budget had not given the impetus required to the engine of growth. It should have been transformational and path-breaking.

A mock-budget competition was held by the student teams.

The team comprising J. Jameel, Yacoob Jacob and Jiby Antony won the first prize. Mr. Padmakumar gave away a cash prize to the winners.

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