Government to focus on agriculture, 5 mega food parks proposed

Shri Pranab Mukherjee, Union Finance Minister, while presenting the Union Budget in Lok Sabha today, said that the government intends to follow a four-pronged strategy covering (a) agricultural production; (b) reduction in wastage of produce; (c) credit support to farmers; and (d) a thrust to the food processing sector.

The first element of the strategy is to extend the green revolution to the Eastern region of the country comprising Bihar, Chattisgarh, Jharkhand, Eastern UP, West Bengal and Orissa by providing Rs.400 crore for this initiative during 2010-11. It is also proposed to organize 60,000 'Pulses and oil seed villages' in rain-fed areas for providing water harvesting, watershed management and enhance productivity of the dry land farming areas by allocating Rs.300 crore. An allocation of Rs.200 crore has also been provided for sustaining the gains already made in the green revolution areas through conservation farming.

The second element of the strategy relates to reduction of significant wastage in storage as well as in the operations of the existing food supply chains in the country. The deficit in storage capacity is met through an ongoing scheme for private sector participation where the FCI has been hiring godowns from private parties for a guaranteed period of 5 years. This period is now being extended to seven years.

The third element of the strategy relates to improving the availability of credit to farmers. The banks have been consistently meeting the targets set for agriculture credit flow in the past few years. For the year 2010-11, the target has been set at Rs.3,75,000 crore.

The fourth element of the strategy aims at lending a further impetus to the development of food processing sector by providing state-of-the-art infrastructure. In addition to the 10 mega food park projects already being set up, the government has decided to set up five more such parks.

Source : Equity Bulls

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