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Andhra Pradesh
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Hyderabad
YSR favours US model of agriculture
HYDERABAD: The State Government has decided to impress upon the Centre the need to evolve a model for agriculture on the lines of the United States to ensure accelerated growth of the sector.
In the United States 1/3rd of revenue generated through agriculture in the form of sale of produce and sales and other taxes is pumped back into the sector as subsidies to farmers.
The US Government came under criticism last year for spending over US $ 20 billion towards farm subsidies as some sections charged it with “oversubsidising” farmers at the expense of other sectors.
The situation in India is quite different in that subsidies provided to farmers were very meagre resulting in a steep decline in its contribution to the GSDP. While over 60 per cent of the population is dependent on agriculture either directly or indirectly, the sector’s contribution to GSDP was less than two per cent.
Chief Minister Y.S. Rajasekhara Reddy is understood to have decided to mount pressure on the Centre to evolve a model which will ensure adequate investments into the ailing sector and bring down the input costs incurred by farmers. He would make a presentation on the issue to Prime Minister Manmohan Singh when he will be in the State for a day on July 31.
Given the concern expressed by the Prime Minister about crisis facing farm sector and the holistic approach as prescribed by him, Dr. Reddy is confident that the Centre would respond favourably to the suggestions. Dr. Reddy, it is learnt, will take up the issue of enhancement of MSP of paddy and maize and would press for a hike ranging from Rs. 50 per quintal to Rs. 200 for different varieties of the two crops in his presentation.
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