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The Union Finance Minister Shri P. Chidambaram today met agriculturists and agricultural experts to start his two-days of pre-budget consultations with various interest groups. Welcoming the participants, the Finance Minister requested the agricultural experts to suggest measures for accelerating agricultural growth and to make the sector more productive and more competitive.
In a wide-ranging discussion that followed, the major suggestions made by the agriculturists included the following:
· Rural water management schemes initiated in the current year’s budget should be strengthened with higher allocation of resources and making them more universal.
· Establishment of water resource development funds at the state levels and involvement of NGOs and private sector for local water development and distribution. Contributions made to this fund may be made tax-free.
· To provide capital subsidy to farmers to build water storage pits.
· National Rural Employment Guarantee Scheme announced by the Government must provide more employment than the 100 days presently envisaged, and should be made more universal and not confined to BPL families only. A self-selection scheme may be devised by an appropriate choice of the wage rate.
· Co-operatives need to be strengthened and restructured for improving credit delivery to agriculture and allied sectors. Regional Rural Banks in association with NABARD may be assigned this task.
· Fiscal incentives should be provided for development of organic farming, bio-fuel, palm oil and other rural resource-based industries.
· To replace the system of Minimum Support Price by remunerative prices and Participatory Price Insurance Scheme.
· Exports may be exempted from the system of Value Added Tax to avoid delays in duty refund.
· To set up a separate TV channel for farmers.
· Credit linked centrally sponsored schemes may be transferred to NABARD.
· Commercial banks in association with NABARD can focus on setting up farmers’ clubs throughout the country.
· R&D in agriculture and allied sectors should be given a major thrust by providing more funds.
· More working capital at concessional interest rates should be provided to plantations.
· Need for replacement of cooked meals in mid-day meal scheme by fruits, fruit and vegetable juices, sweet potatoes etc.
· Medicinal and aromatic plants in rural areas should be encouraged.
· Cooperatives may be promoted in emerging areas like tourism, IT and other services.
· Income tax on marketing cooperatives may be withdrawn.
The meeting was attended by eminent agricultural economists and researchers, representatives of cooperative banks, agricultural commodity organisations, Chairperson of NABARD and senior officials of the Ministry of Finance.
BSC/BY/GN
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