BUDGET 2013-14: Tonic for agriculture sector

Jul 13, 2013

BUDGET 2013-14
BUDGET 2013-14

The shrinking food and agriculture sectors are all set to get a shot in the arm with the state budget offering incentives and sops for their revival.

The state’s agriculture sector has witnessed slump in the growth from 12.4% in 2007-08 to 1.8% in 2012-13 largely because of successive droughts. Keeping this in view, chief minister Siddaramaiah has earmarked Rs 4,378 crore for agriculture and allied sectors to infuse a new lease of life.

“A separate agriculture budget presented by the previous BS Yeddyurappa-led BJP government had failed to revive the sector because of poor spending. So we decided to discontinue it and follow the old system,” said Siddaramaiah.

While retaining many of the populist schemes of the previous BJP regime, Siddaramaiah has taken the ‘zero per cent interest’ farm loan scheme one step forward. The earlier scheme, where farmers used to get loan up to Rs 1 lakh for zero per cent interest from cooperative sectors, has been enhanced to Rs 2 lakh. The loans from Rs 2 lakh to Rs 3 lakh will attract one per cent interest. The existing interest at 3% to medium and long-term loans up to Rs 10 lakh will be continued. The state government has also decided to constitute Agricultural Prices Commission to advise it on the fixation of prices of agricultural commodities. “If necessary, the price commission will resort to market intervention through support prices, for which a revolving fund has been enhanced to Rs 1,000 crore,” CM said. The government has decided to revise the natural calamity guidelines, so that farmers receive better compensation. Courtesy The Times of India

Published in ZaraiMedia.com

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