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CIFA UNION BUDGET DEMANDS FOR THE YEAR 2009-2010 5th-feb-2009
1. MINISTRY OF AGRICULTURE & CO-OPERATION >
Issues |
Present Position |
Demand by CIFA |
a) Implementation of recommendations of National Commission on Farmers
(Prof. M.S. Swaminathan Report). |
1) National Commission on farmers headed by Prof. M.S. Swaminathan made specific recommendations for accelerated development of farm and non-farm sectors.
2) He has also recommended allocation of Funds for each development activity in the Budget.
3) The GOI even after laps of 2 years failed to allocate funds and diluted recommendations by releasing a in-effective National Farmers Policy-2008. |
1) All recommendations made by National Commission on farmers headed by Prof. M.S. Swaminathan be implemented immediately by allocating funds for each development activity in the Budget. |
b) Fixing MSP for various Agricultural Commodities. |
1) Recommendations of various Committees viz., Shri. L.K. Jha, Dr. Ashok Mitra, Dr. S.R. Sen, Prof. C.H. Hanumantha Rao and Prof. Alagh under costs of cultivation scheme have not been implemented while computing costs of cultivation at grass root level.
2) No transparency and Farmers involvement in collection of data.
3) Previous years data is considered for fixing current year MSP without taking into consideration the cost index.
4) The methodology followed, regarding imputing family labour, rental value of land, interest on capital depreciation on fixed assets and agricultural machinery, cost of transportation, marketing charges and storage is not in conformity with recommendations of various Committees and working against the interests of farmers.
5) There is no relevance between the costs actually incurred by Farmers, the data obtained by field assistants, computed by Agricultural Universities, State Governments, Directorate of Economics & Statistics, analysed by Commission for Agricultural Costs and Prices and finally fixed by GOI.
6) The MSP fixed has no relevance with costs of cultivation actually incurred by Farmers and fixed by GOI.
7) The MSP fixed by GOI is only Political Support Price (PSP) but not based on the data obtained from various sources.
8) According to Govt. sources Rs.1 hike in diesel increases the cultivation cost by Rs.100 per hectare and diesel prices have risen 13 % since last year.
9) MSP is being announced after the farmers commence Kharif and Rabi sowing operations and farmers have no choice of crop selection. |
1) Recommendations of various Committees under Costs of Cultivation Scheme be implemented and all costs actually incurred by farmers taken into consideration while computing costs at grass root level.
2) CACP to be made an autonomous Institutions as suggested by above Committees.
3) The Whole system be reviewed, transparent procedures, methodology evolved and CACP strengthened by inducting more Farmers representatives including women by granting Statutory status.
4) MSP should be all costs actually incurred by Farmers by adding minimum 50% of it i.e. (C2+Minimum 50% of it) as recommended by National Commission on Farmers headed by Prof. M.S. Swaminathan.
5) MSP be increased proportionately whenever agricultural inputs prices are increased by taking into cost of index into consideration as being followed in the case of salaries of employees of various sectors.
6) MSP be fixed and announced 6 months before Kharif and Rabi harvests reach markets as recommended by experts groups. |
c) i) Procurement
ii) Procurement of agriculture produce affected by cyclones, floods etc.
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1) When the Crops are affected by floods, the colour of the produce will be affected.
2) Government agencies i.e. FCI and Market Yards are reluctant to pay the MSP fixed to the concerned crop.
3) The State Governments are approaching GOI of India for purchase of produce affected by floods.
4) This procedure is time consuming and Farmers are resorting for distress sale of produce.
5) Neither the govt. of India nor the State Governments are coming to the rescue of affected farmers. |
1) All Commodities included in the MSP must be procured by Government.
2) Mandatory provisions be evolved, FCI/CCI etc., Acts and relevant Rules amended to purchase produce affected by floods.
3) The state Governments should amend marketing committees, Acts and Rules facilitating purchase of produce affected by floods. |
d) 100% Seed replacement through Production of certified by public and private organizations. |
1) Supply of certified Seed from public institutes and private companies account for about 8 percent. The remaining 92 percent requirement is met either by storing own seed or by farmer-to-farmer exchange.
2) The International & National, Research Institutions and Commissions appointed for the welfare of farmers emphasized the need of 100% replacement of seed for improving quality & quantity of yields. This item of work is required to be tackled on war-footing basis.
3) State Governments have no sufficient resources to supply quality seed to farmers.
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1) Production of certified Seed by public and private institutes be increased under PPPs Scheme by offering incentives and tax holidays to the Seed producers.
2) A specific action plan be evolved for 100% seed replacement.
3) Resources be provided by Government of India.
4) Area specific and high yielding varieties be produced and distributed at affordable prices.
5) Seed banks be established to ensure availability of Seed at the time of natural calamities.
6) Farmers' organizations, NGOs and other private Seed producers be encouraged for Seed production with incentive packages.
7) Seed Village Scheme be implemented.
8) Training be imparted to agricultural graduates, progressive farmers and seed societies for producing quality Seed. |
e) National Policy on Soil Health
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1) Consequent on use of excessive chemical fertilizers and not following rotation of crops, the soils are badly degraded and needs immediate treatment to improve the quality and
quantity of yields. The International, National, research institutions and commissions appointed for the welfare of farmers emphasized the need of soil health.
2) Budget allocations of Rs.75 crores made during 2008-09 for providing Mobile, soil testing laboratories is yet to be grounded. |
1) National policy on soil health be evolved to rectify and restore soil fertility.
2) Mobile soil testing laboratories be introduced and soil tests made at the fields in the presence of farmers.
3) Soil health cards be provided to farmers.
4) Quality micro nutrients be provided for balancing soil health. |
f) Standardization of Organic Fertilizers & Extension of incentives on par with chemical fertilizers |
1) Vermi compost, Vermi wash, Organic manures and bio-fertilizers are manufactured by several small scale units without maintaining standards and quality.
2) The farmers are put to crop losses due to adulteration and high prices.
3) No specifications are fixed for manufacturing organic fertilizers. |
1) Specifications and standards be fixed for organic fertilizers.
2) The incentives extended to chemical fertilizers be extended to organic fertilizers also. |
g) Research & Development |
1) The research and development failed to produced short term duration and drought and flood resistant varieties.
2) No plan of action for producing required quantities of breeder, foundation and certified seed. |
1) Priority be assigned for development and supply of High Yielding and Hybrid Varieties.
2) Development of varieties having Disease Resistance/ Tolerance particularly against Rusts, Karnal Bunt and Blight be ensured.
3) Development of varieties suitable for Rainfed/ Limited Irrigation condition be ensured.
4) Research on Integrated Pest Management be ensured.
5) Research on effective control measures for problematic weed like Phalaris be ensured.
6) Development of storage structures and control of storage pests be ensured.
7) Rodent control technologies be developed and implemented.
8) The research institutes should honour its primary responsibility and develop elite germplasm and release high yielding varieties regularly. |
h) Transfer of Technology |
1) Transfer of improved production technologies remain as most neglected component and consequently the benefit of improved varieties and production technology could not be harnessed.
2) Dissemination of improved technologies from lab to land consumes long time and adoption by Farmers is not ensured. |
1) Emphasis be given on a cropping system approach rather than a single crop development approach.
2) Improved crop production technologies be propagated based on agro-climatic zones through demonstrations on Farmers fields and organizing training programmes for Farmers including women.
3) Quick dissemination of knowledge on improved technologies be ensured.
4) Aggressive transfer of production technologies be ensured through Frontline demonstrations and Block demonstrations involving SDA, KVKs, NGOs, SAUs and private sectors.
5) Bottom up approach of technology development and dissemination by involving farmers should be ensured.
6) ATMA concept of NATP project be extended to all the States and districts in the country. |
i) Mechanization |
1) Agriculture labour shortage is a major production constraint in completing sowing and harvesting operations in time.
2) Urban migration for better jobs and physical drudgery involved in culture practices driving away the workforce.
3) Traditional culture practices consume more man hours and also physical drudgery on the part of both labour and animals. |
1) Innovative bullock and power drawn modern implements be invented and introduced for timely completion of sowing and harvesting operations.
2) The agricultural implements be provided with 75% subsidy without ceiling on subsidy amount.
3) Agricultural implements be made available for customs service through village panchayats, co-operatives, self help groups. |
j) Crop Insurance
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1) The premium collected on crop insurance ranges from 2% to 7%.
2) All risks are not covered.
3) Procedures adopted for indemnifying losses are against the farmers interest.
4) In the case of automobile and industrial sector actual loss is indemnified and in the case of agriculture 5 years average / threshold yield is adopted.
5) The village is not adopted as unit.
6) The insurance claims are not settled in time and farmers are required to pay extra interest on the loans borrowed.
7) In other countries the premium is subsidized and farmers interest protected while indemnifying losses by extending financial support. |
1) The premium be reduced, subsidizing by Govt. as in the case of other countries.
2) Cumbersome procedures adopted for indemnifying losses be reviewed and crop losses indemnified as in other sectors and countries.
3) The crop loss claims be settled before the due date fixed for payment of loan. Interest if any payable after due date consequent on delay in settling claims be borne by crop insurance company.
4) Remote sensing technology be applied for settling crop loss claims in a time bound programme. |
k) Agriculture Extension Services.
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1) Reach to fields – very poor
2) No Professionalism,
3) Multiple jobs to attend and therefore no focus on agricultural extension per se.
4) No Specialization – sometimes unsuitable for special crops grown in the area.
5) No knowledge / skills on markets and their operations.
6) No knowledge / exposure of private sector inputs /products.
7) Mobility and communication not optimal.
8) Most of the precious time lost in data collection, meetings and distribution of subsidies, inputs etc.,
9) Most countries in the world have an effective extension delivery system either state operated, commodity group operated, Farmers’ organizations delivered or Private. Unfortunately we have not got any.
10) GOI is not taking interest in Extension. |
1) The agri- extension services be strengthened at Grampanchayat level [Local Govt.] by competent officer.
2) GOI to take responsibility for extension services.
3) The agri-extension officer / Veterinary officer / Horticulture Officer/ Sericulture officer/ Fisheries extension workers, as the case may be, be employed by Grampanchayat.
4) A Library be established with adequate Literature about the crops grown in the village besides agri allied activities.
5) A Desktop computer be provided in each Library with agri-information Network to provide online market and crop related information.
6) CDs and DVDs on relevant crop practices be made available in all libraries.
7) The financial support for maintaining the Libraries be provided by the GOI /State Govts., as in the case of USA and many other countries.
8) The Extension officers of various disciplines be provided training with updated techniques by GOI and State Govts. |
l) Marketing |
i) |
Market yards are managed by committees nominated by the Government with local politicians traders and middle-men affiliated to the party in power. |
i) |
Market yards be managed by farmers who grow crops and utilize the services of Market Yards. The Committee be formed by election with stake holders |
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ii) |
No proper accounting of arrivals and sales. |
ii) |
Innovative electronic equipment be introduced for accounting arrivals and sales. |
iii) |
Non functioning electronic weighing machines |
iii) |
The arrivals in the market yards be weighed with electronic mechanics only. |
iv) |
Market yards’ labour domination results excess expenditure and waste of produce. |
iv) |
Labour domination be checked. Option be provided to farmer to handle with his produce. |
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v) |
Traders form into syndicate and create an atmosphere for distress sale of commodities. |
v) |
Minimum support price be fixed by market yard. Auction be conducted transparently. Video graphing be carried out during auction |
vi) |
Instant payment is not made. For instant payment, the farmer is required to pay a months’ interest at 24 to 36 percent. |
vi) |
Storage and cold storage facilities be provided. |
vii) |
No proper storage and cold storage facilities. |
vii) |
New A.P.M.S to be encouraged. |
viii) |
No pledge loan facilities. |
viii) |
Pledge loan facilities be provided. |
ix) |
Commission is collected at 8 to 10 percent. |
ix) |
Cess collection system be tightened. Sales be accounted for with innovative electronic devices. |
x) |
Receipts are issued on white papers. |
x) |
Permanent official printed receipts be issued |
xi) |
Cess collected out of sales not properly accounted for. Direct loss to the Government. |
xi) |
Cess collection system be tightened. Sales be accounted for with innovative electronic devices. |
xii) |
In the name of grading and quality 1 to 2% cut is imposed on quantity of the produce. |
xii) |
No cut be imposed on the quantity of produce brought by the Farmer to market yard. |
xiii) |
No Scientific equipment for grading or testing quality. |
xiii) |
Scientific equipment be introduced for grading and testing quality. |
xiv) |
No waiting or resting facilities to farmers in the market yards. |
xiv) |
Waiting and resting facilities be provided to farmers at market yards. |
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xv) |
Accountability and liability be fixed on officials who violate the rules in force. |
xvi) |
Marketing intelligence and intervention schemes be strengthened and implemented to contain distress sale by Farmers. |
m) Breed Improvement |
1) Animal husbandry plays an important role in the lives of women farmers. However, due to non improvement of breed, the yields are stagnated in the backward States. For eg., Kerala has achieved 60% breed improvement compared to 2% in Bihar. The monthly income variations observed Rs.15,000/- in Kerala and Rs.3,000/- in Bihar. |
1) Breed improvement be taken up on war footing basis by Government of India.
2) A National Policy be evolved to improve breed under a time bound programme.
3) Import of quality semen be allowed freely. |
n) Constitution of Farmers Welfare Fund |
1) Whenever the farmers are affected by natural calamities, neither the State Government nor Central Government is coming to the rescue of farmers and providing instant relief.
2) The Government of India takes shelter stating that the agriculture is State subject and the State Government blames GOI for not releasing funds.
3) Government of India orders re-schedulement of loans and such action is driving farmers into debt burden.
4) Farmers Welfare Fund will reduce burden of State and Central Governments from charging such expenditures from Budget of respective Governments.
5) The relief and rehabilitation to the affected farmers can be extended out of the above fund. |
1) Farmers Welfare Fund be constituted and farmers affected by natural calamities, assisted out of the above fund.
2) The Farmers Welfare Fund be operated by an autonomous agency constituted with farmers.
3) Funds be collected for Farmers Welfare by collecting Cess from Public as in the case of Educational Cess. |
o) Acquiring of Agricultural lands for SEZs, Export Zones and major Industries. |
1) The Governments are acquiring valuable Agricultural lands for Organizing SEZs, Export Zone and establishing major industries.
2) The farmers are not paid proper compensation when the lands are acquired.
3) No rehabilitation package is extended to farmers.
4) In such situations rural folk are forced to migrate to towns and cities. |
1) The valuable agricultural lands should not be acquired for SEZs, Export Zone and major industries.
2) In case it is inevitable the farmers be paid compensation at market prices.
3) The affected farmers be made partners and equity be provided to them in such ventures. |
p) Inclusion of Agriculture in concurrent list and separate Union Budget for farm sector. |
1) The crucial policies for agricultural development and financial resources are handled by Government of India.
2) However agriculture is in the State List.
3) 67% total population depend on agriculture and contribute 20% to GDP.
4) GOI allocates negligible funds to agriculture sector less than 5%. |
1) Agriculture subject be included in concurrent list.
2) A separate Union Budget be presented by the Union Minister of Agriculture and allocate funds on par with farmers population and contribution to GDP.
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2. MINISTRY OF FINANCE |
a) Provision of Agriculture Credit. |
The realistic Agriculture Credit requirements would be as under: |
1) All Agricultural holdings in the Country be tagged on to one of the Banks located in the area, provide adequate interest free credit based on scale of finance fixed for each crop and each purpose under short, medium and long term loans without insisting collateral security. Any time loans be provided to farmers’ to meet financial needs of Education, Health, Marriages consumption and other religious purposes. |
S.No. |
Particulars |
(Rs. in Crores) |
1. |
RAINFED CROPS |
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a) |
Average minimum cost of cultivation for rainfed crops is estimated at Rs.10,000 per acre |
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b) |
Cropped area under rainfed conditions – 30 crore acres |
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c) |
Total credit requirement
30 crore acres x Rs.10,000 |
3,00,000 |
2. |
IRRIGATED CROPS |
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a) |
Average minimum cost of cultivation for irrigated commercial crops is estimated at Rs.20,000 per acre |
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b) |
Cropped area under irrigated conditions – 20 crore acres |
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c) |
Total credit requirement
20 crore acres x Rs. 20,000 |
4,00,000 |
3 |
RAINFED LAND DEVELOPMENT |
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a) |
10% of 30 crore acres i.e. 3 crore acres for irrigation and land development per year (Term Loans) |
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b) |
If 5 acres is assumed as command area under each unit of well / bore well, the total units will be (3 crore acres divided by 5 acres = 60,00,000 units) |
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c) |
If term loan of Rs.50,000 is assumed per unit, the credit requirement would be 60,00,000 units x Rs.50,000 |
30,000 |
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d) |
Animal husbandry activities |
2,70,000 |
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TOTAL |
10,00,000 |
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e) |
But the GOI is allocating only ¼ of the requirements. |
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b) Rate of Interest on Agriculture Loans |
1) Different Banks are charging different rates of interest ranging from 7% to 14% on Agricultural Loans.
2) Lesser interest is charged on housing and Industrial Loans.
3) Agriculture is in priority sector and hence lesser rate of interest is required to be charged on Agriculture Loans.
4) The National Commission on Farmers headed by Prof. M.S. Swaminathan recommended 4% rate of Interest on Agriculture Loans.
5) The Banks are charging compound interest, service and other charges etc.
6) The banks are insisting no due certificates from farmers. |
1) Interest free agriculture loans, without collecting any service and other charges be provided.
2) Instructions be issued to banks for not insisting no due certificates from farmers.
3) Adequate credit be provided to Farmers based on the scale of finance fixed.
4) The practice of charging higher rate of interest after due date be scraped in the case of agricultural loans. |
c) Waiver of total loans on failure of two crops and interest on failure of one crop. |
1) Failure of two consecutive crops either in dry or irrigated conditions will cause irreversible damage to the family of the farmer.
2) The agricultural activity is spread over long term and the farmers not only invest money but also their own family labour.
3) It is not possible under any circumstances to recoup the loss. The Crop Insurances Schemes in place are against the interest of Farmers.
4) Re-scheduling of crop loans is not beneficial to the farmer as he can not increase the production or he will get 100% more price.
5) Therefore the farmer cannot repay the losses sustained in two years. |
1) Agricultural debt waiver and debt relief scheme, 2008 has not provided anticipated relief to Farmers.
2) All outstanding Agriculture Loans, Institutional and Private be waived under one time relief scheme.
3) Mandatory Provisions be made to waive principal and interest in the case of two successive crop losses.
4) Interest be waived in the case of one crop loss. |
d) Accepting of Agricultural lands and Rural properties as collateral security by banks. |
1) The banks are not accepting agricultural lands and Rural properties as collateral security for sanctioning Rural Agricultural based Industrial loans.
2) The banks are insisting Urban properties as collateral security for sanctioning Rural Agricultural based Industrial loans.
3) The agricultural lands and rural properties are also valuable as in the case of Urban properties. |
1) Instructions be issued to banks for accepting agricultural lands / rural properties as collateral security
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e) Natural Calamities and Relief |
1) The Agricultural Sector is contributing major share to the GDP of the nation.
2) Whenever the farmers are affected by crop losses due to Natural Calamities, the GOI is not providing instant relief and rehabilitation.
3) The loss suffered by farmers and assessed by Indian Administrative Service(IAS), officers are not accepted by GOI.
4) Deputation of Junior IAS Officers of GOI for verifying crop losses assessed by Senior IAS Officers of State Governments is time consuming and no purpose is served.
5) In the name of GOI teams visit the State Governments are reluctant to extend instant relief and rehabilitation to the affected farmers.
6) The state governments are of the opinion that the GOI should come to the rescue of farmers and the GOI is of the opinion that agriculture is state subject and they should provide instant relief to the affected farmers without waiting for GOI grants. |
1) Mandatory provisions be evolved for providing instant relief and rehabilitation to the affected farmers by introducing new Acts and Rules.
2. The roles of GOI and State Governments be specified without any scope for ambiguity in providing relief to the affected farmers.
3. The state governments be made responsible for providing instant relief and rehabilitation out of their own funds and claim re-imbursement from GOI. |
f) Waiver of excise duty on Agriculture inputs. |
1) The cost of Agriculture inputs i.e. Pesticides, Veterinary medicines and Vaccines, drip and Sprinkler equipment, Plastic agriculture implements and equipment and steel used for agriculture implements and also storage bins has been increased due to imposition of excise duty.
2) Consequently the cost of cultivation is enormously increased. |
1) Excise duty on all agriculture inputs including implements be waived.
2) It will help in conserving water. |
g) Income Tax exemption on Investments for Agriculture research, Extension, Training and Infrastructure by Private Sector. |
1) The Public Sector agriculture research, extension, training and infrastructure is inadequate to meet the requirements of farmers.
2) The farmers are depending on input dealers for extension services.
3) The Private Sector can invest on the Agriculture research, extension, training and infrastructure if tax exemption is provided. |
1) Income Tax exemption be provided to Private Sector on investment in agriculture research, extension, training and infrastructure. |
3. MINISTRY OF COMMERCE |
a) Performance of Commodity Boards |
1) The performance of Commodity Boards has not been satisfactory during the past 2 decades due to lack of professionalism on market intelligence on the part of CEOs.
2) Small Countries like Gouthamala & Vietnam has over taken India in production and marketing of pepper and cardamom.
3) China & Mozambic have over taken India in production and marketing of tobacco. |
1) Crop-wise Commodity Boards be handed over to the progressive farmers.
2) The Board of Management be constituted with professionals.
3) Chilies be separated from spices board and exclusive Commodity Board for chilies be constituted. |
b) i) Regulating import of agriculture commodities.
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1) Government is importing Wheat, Sugar, Spices and other commodities at a very high cost.
2) Government is importing Wheat even though there was huge stock within the Country.
3) The Import Policies are arbitrary. Farmers Associations are not consulted.
4) The import of spices from Srilanka has caused huge losses to spice farmers.
5) The free trade agreements on edible oils have not taken Indian farmers interest in to consideration.
6) There is no long term export & import policies on agricultural commodities.
7) Import duties are levied arbitrarily. |
1) Long term export & import policies be evolved for agricultural commodities.
2) Export commitments of agriculture produce be strictly adhered.
3) Regulatory Authority with farmers representatives be constituted to fix import duties
4) Farmers organizations be consulted and consent obtained regarding import & export of Agricultural Commodities. |
4. MINISTRY OF EDUCATION |
a) Introduction of Agriculture subject in the curriculum of school education. |
1) All professional subjects are included in school education except Agriculture.
2) Agriculture is also a professional subject.
3) The drop-outs at school level find it difficult to take-up agriculture in absence of such facility in schools.
4) Such drop outs migrate to towns and cities.. |
1) Agriculture subject be included in the curriculum of school education with a view to attract youth towards agriculture profession. |
5. MINISTRY OF IRRIGATION AND POWER |
a) Irrigation facilities.
b) Free electricity to groundwater user farmers. |
1) 55% of dry land farmers are dependent on rains which are highly unpredictable and are causing immense difficulties to farmers.
2) Providing water to agricultural activity is a constitutional obligation of the government.
3) The farmers depending on groundwater are investing Rs.1.5 to Rs. 2 lacs. on bore-well and pump set |
1) All the lands in the country be provided with irrigation facilities.
2) The ground water user farmers be provided free electricity.
3) One time allocation of Rs.1 lakh crores for completing on going irrigation projects be provided. |
6. CONSTITUTIONAL ISSUES |
a) Fulfilling the constitutional obligation. |
1) We have adopted democratic Form of Governance under a written constitution. The word “SOCIALIST” is included in the preamble of our constitution of India.
2) The Supreme Court in their Judgment in respect of SCC 305, 325 and 326 of 1983 (D.S. Nakara Verses Union of India) has defined the meaning and scope of Word “Socialist” which was introduced in the preamble by the 42nd amendment of the constitution vide Act of 1976.
3) The basic frame work of “Socialism” is to provide a decent standard of life to the working people and especially provide security from cradle to grave.
4) To provide economic equality and equitable distribution of income.
5) But, the farmers suicides across the country in lakhs, clearly indicate that the Government both Central and State have failed to fulfill the above constitutional obligations. |
1) Accountability and liability be fixed for each authority (both political and administrative) for fulfilling the Constitutional obligation. |
b) Local self Governance
i) Under Constitutional Amendment 73 of 1993, vide 11th Schedule (Article 243 G) the Local Self Government i.e., Gram Panchayat is to be devolved with certain powers (29 Subjects) viz., Agriculture, Agri Extension, Minor Irrigation and Water Management etc., |
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At present most of the State Governments are not implementing the Amendments and devolved powers on Gram Panchayats.
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1) All the 29 Subjects which are listed under 11th Schedule (Article 243 G) be devolved to the Gram Panchayats and necessary funds be made available. |
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