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LATEST NEWS UPDATES | Budget 2013: Agriculture Ministry seeks more fund allocation to push output

Budget 2013: Agriculture Ministry seeks more fund allocation to push output

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published Published on Feb 17, 2013   modified Modified on Feb 17, 2013
-The Economic Times

The agriculture ministry is seeking more budgetary support to increase farm sector growth rate to 4% per annum from 3.5% at present.

"The allocation this year would be more as the country needs to produce more to provide food security to the nation," an agriculture ministry official said. "The scheme 'Bringing Green Revolution in Eastern India' has done well with increased funds of Rs 1,000 crore. We expect more allocation." In the last budget, the total plan outlay for agriculture and cooperation was increased by 18% from Rs 17,123 crore in 2011-12 to Rs 20,208 crore.

The upcoming budget is expected to focus on promoting assured stable and remunerative prices, greater involvement of private players, quality input, power supply and distribution of more institutional credit.

The outlay for farm sector programmes, such as Rashtriya Krishi Vikas Yojna, National Mission on Agriculture Extension, National Mission on Seeds and Planting Material, National Mission on Agricultural Mechanisation, National Mission on Oilseeds and Oil Palm, National Mission for Sustainable Agriculture, and National Mission for Protein Supplements and the Accelerated Fodder Development Programme, should be increased to cover more farmers. The budget may reinforce the need to increase access to credit.

"Last year, the finance minister has raised the target of credit flow to farmers from Rs 4.75 lakh crore to Rs 5.75 lakh crore. This year also, more liquidity should be inducted in the system to benefit farmers," the official said.

The budget may offer provisions for setting up National Agriculture Climate Damage Fund and creation of post-harvest infrastructure in villages. "More focus is needed on National Agriculture Research System, extension of the advance quality seeds to the farmers, creating environment for equitable and employment generated agriculture," another official said.

The food ministry is also gearing up for its ambitious food security programme. For food subsidy, the ministry has demanded a budgetary provision of Rs 1.25 lakh crore, against the existing Rs 80,000 crore. It has also sought funds for strengthening the public distribution system (PDS) and putting an IT-enabled PDS in place for direct transfer of cash subsidy. Meanwhile, to protect domestic refiners, the edible oil industry has sought an increase in import duty on refined palmolein to 10% from 7.5% at present.

The Economic Times, 16 February, 2013, http://economictimes.indiatimes.com/news/economy/agriculture/budget-2013-agriculture-ministry-seeks-more-fund-allocation-to-push-output/articleshow/18522205.cms


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