ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY RECOMMENDATION FROM ISSUES FOR INCLUSION IN UNION BUDGET 2009-10
ISSUE FOR DISCUSSION
What are the Present budgetary allocations to agricultural sector in India by the Union Government? Are the allocations sufficient to achieve 4% growth and also sustainability of farm sector?
1) capital formation in Agriculture sector needs to be raised above 16% of total GDP. In 2006-07 it was 12.5%. This means the investments in agriculture sector needs to be stepped up to achieve the desired level of capital formation to ensure 4% growth rate and agricultural sustainability.
2) Credit facility must be extended to Rs.3.5 lakh crore from the proposed Rs.2.8 lakh cores
3) Crop insurance under NIAS during 2008-09 was Rs.644 crores which is inadequate and need to be doubled. Further weather insurance must be strengthened with adequate funds and infrastructure.
2) What are the policies especially of free trade in agriculture that will be helpful for the farm sector?
Policies of the trade
1. Price stabilization fund is to be established.
2. Excise duty exemption for finished products to encourage food processing.
3. Special privileges to commodity boards like tea, coffee, spices etc., by creating special purpose funds worth of Rs. 200 Crores to encourage exports.
3) Should Agriculture be included in the current subject?
It is desired to be in all the lists.
4) Should there be a Separate Budget for Agriculture by the Union Government?
There is a separate budget for railways. Similarly. If the budget is separate for Agriculture certainly it attracts the attention of the government in terms of higher allocations than at present. Different ministries pertaining to agriculture sector such as fertilizers, food processing, commerce, rural development, water resources etc. Must be brought under one umbrella before deciding a separate budget.
5) What are the technologies and policies required to develop small farmers competitiveness?
- Appropriate dry land agricultural technologies including watersheds, dryland horticulture, agroforestry, energy plantations, medicinal plants etc.
- Efficient irrigation technologies – micro irrigation – green houses, poly houses.
- Modernization of irrigation systems – particularly canal lining and maintenance to reduce seepage losses.
- Biotechnologies – tissue culture, PHT, food processing technologies.
- Contract farming with appropriate legal background.
- Seed production and marketing technologies.
- Strengthening of financial and marketing institutions.
6. How to, bring about Economic equity between farmers and other organized sector.
Agriculture must be given industry status to bring economic equality between farmers and other organized sectors. Creation of farmers organizations may be encouraged with financial support.
7. How to, prevent migrations of youth from rural areas so that agricultural activities will be continued.
Provision of urban facilities in Rural Areas, PURA scheme must be implemented in true spirit to prevent distress migration of youth from rural to urban areas. Rural industries must be given priority on war footing with necessary water and electricity supply apart from the usual incentives.
8. How to, segregate genuine farmers (Small, marginal, tenant, nomads and tribal farmers) from the artificial farmers (political, tax evaders, farm housed, industries)?
Genuine farmers may be identified by several ways – through pattadar pass books, voter identity cards, house identity etc. people who are depending on non – farm activities can also take up farm activates. Other category people include in farm activities, whose profession is not primarily farming may be identified by virtue of their primary professions. If they are not genuine for their dependence on agriculture, they may be penalized by appropriate taxation. However, their investments in agriculture sector must properly be judged in terms of positive contribution to agriculture and vested interests.
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