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Development: All the Editorials & Analysts voiced too little funding of Agri Revival Schemes: |
Weak Input. BL Edit, 040310: Huge investments are necessary at both pre-harvest and post-harvest stages. Interestingly, despite recognising the enormity of the issues, the Budget provides just Rs 400 crore for the initiative for 2010-11.
The allocation of Rs 200 crore for climate resilient Initiative may not be sufficient, but must been seen as a good first step and continued till there is evidence of soil health improvement. |
| In sum, while welcome, these proposals by themselves are unlikely to make a significant contribution to farm output growth, especially because the outlay is limited. The other three elements of the strategy — extension of guarantee period of private sector storage capacity hired by Food Corporation of India, increased flow of farm credit and setting up of mega food parks may also have limited implication in the short term for food security. |
Budget was mixed for agriculture, Yoginder K Alagh
Fin Exp Mar 04, 2010
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The Budget has all the right metaphors. It very correctly underlines the programmes in the 11th Plan with annual financial numbers along with the Rashtriya Krishi Vikas Yojana and the Food Security Mission. Allocations to the Eastern region and pulses and oilseeds villages are very well taken. But as the 11th Plan makes it clear all such allocations will be made only if they are a part of a local or district plan; and the focus on villages, for example, in the FM’s speech underlines that. Such plans are generally not there as shown by the recent surveys on district plans. Take the case of an oilseeds or pulses village.
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 K. Ramasubba Reddy, Will Budget Allotments Stimulate 4% Farm Growth? |
While the moves are welcome and are in the right direction, token allocations made will not serve the purpose of improving yields to attaining 4% agri growth and reducing wastage.
A comprehensive scheme with massive investment package of about Rs 100,000 crore during the next four years is called for. Revenue foregone for the financial year 2009-10 went up by Rs88,000 crore (from Rs 414,000 crore to Rs 502,000 crore). Revenue foregone as % of aggregate tax collection in 2009-10 went up to 80% compared to 69% during 2008-09.
A part of this amount could have been utilized for development of Agriculture to ensure 4% growth and food security instead of doling out as increase in concessions to corporate sector allowing lesser payment of corporate taxes, excise and customs duties. |
| NARENDAR PANI : |
The agricultural growth package mooted in the Union Budget for 2010-11 seems well conceived but not adequately supported by funding for its key elements.
While the finance minister has succeeded in correctly diagnosing the illsof the farm sector, as well as the cures, the homeopathic fiscal dose provided for administering the remedies may not serve the purpose. Business Standard 020310
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| There is talk of a four-pronged strategy to spur agricultural growth, including a mission to create ‘pulses and oil seed villages'. But, as has happened so often in recent budget speeches, the Finance Minister has not quite put his money behind his statements. To speak of creating 60,000 pulses and oilseed villages in the 60 th year of the Republic adds punch to the speech. But that is less than a tenth of India's villages. And with each village being allocated, on an average. |
It is possible, though, that some of these schemes may punch above the weight of their rather meagre allocations. A major problem in dry land technologies is that the investments that help retain water often have to be made over the entire contour, taking local specificities into account. If the schemes with meagre allocations can identify the local needs and then use the heavier schemes, like the NREGA, to actually carry out the work, the overall impact should be greater.
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M.R. Subramani : |
The increased resources made available to the poor have seen them demand larger quantities of food. Those who were previously able to afford only coarse cereals could now think of buying rice and wheat. And since agricultural production was in no condition to meet this growing demand, it generated a severe upward pressure on food prices.
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The first element of the strategy – to extend the Green Revolution to the eastern region, a good move. However, an allocation of Rs 400 crore seems to be on the lower side. |
The Hindu Business Line : |
Nearly half of the area under grains is rain-fed as also 68 per cent of the area under non-food crops. There are two issues to this. One is whether the allocation is sufficient. Two, how will the farmers be encouraged to take up oilseed or pulses? |
| Four good steps that will yield results, Madan Sabnavis, FE 050310 |
The FM’s approach is fairly cogent and comprehensive and does not leave any loose ends. The total allocation of around Rs 700 crore (plus interest subvention) may not be too large and will have to be increased in subsequent years, as any effort towards making agriculture robust involves relentless focus and outlays, given that the canvas is expansive and the treatment must be deep rooted, both literally and figuratively. |
