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LATEST NEWS UPDATES | Panel for lower interest on farm loans by Gargi Parsai

Panel for lower interest on farm loans by Gargi Parsai

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published Published on Dec 16, 2010   modified Modified on Dec 16, 2010

A working group on agriculture constituted by Prime Minister Manmohan Singh has suggested that the government provide farm loans to farmers at four per cent interest rate, raise the minimum support price (MSP) for farm produce to 50 per cent higher than the actual cost of cultivation and expand diesel subsidy scheme across the country.

The Working Group on Agriculture Production headed by Haryana Chief Minister Bhupinder Singh Hooda submitted its report to the Prime Minister here on Wednesday. Chief Ministers of Bihar, Punjab and West Bengal were members of the group.

The group made 150 suggestions which would be discussed in the next meeting of the Core Group of ministers and Chief Ministers to be chaired by the Prime Minister on December 28.

To focus attention on agriculture and for better coordination among various ministries, the group called for setting up a Scientific Advisory Council of Agriculture with the Prime Minister as the chair.

While asserting that the recommendations of the Swaminathan Commission on four per cent interest on credit and higher MSP be implemented, the group called for support price for potato, onion and garlic.

Supporting encouragement to private sector, the group said that the market for agriculture produce must be freed of all restrictions on movement, trading, stocking, finance and exports. No monopoly, including that of Agriculture Produce Marketing Committee or corporate licensees should be allowed.

Agriculture land ceiling for corporates should be fixed at 25 times the cap for individual farmers. There should be proper policy framework for land lease and contract farming. Indian companies should be encouraged for contract/lease farming in foreign countries.

The group asked the government to look at north-east for improving yields and production especially through expansion of area under boro (winter) rice.

While stressing on integrated development of farming systems including crops, horticulture and livestock to generate on-farm and off-farm employment, the group suggested that production of hybrid seeds and incentives to the private sector must be encouraged.

Irrigation was another area that the group focussed on with suggestions to promote micro irrigation and such techniques as a national priority.

Technology mission

It called for a Technology Mission on farm mechanisation and establishment of agri business centres by Self-help Groups.

The group suggested programmes for nutrient-based fertilisers and use of bio-fertilisers and said efforts should be made to encourage use of wind and solar power.

It wants all types of tools, implements, machinery and equipment used in the sector to be allowed to be imported without any duty.


The Hindu, 16 December, 2010, http://www.thehindu.com/todays-paper/article955700.ece


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