$6b package for Indian farm sector
Pallab Bhattacharya, New Delhi
Indian Prime Minister Manmohan Singh has announced a six billion dollar package to revive the country's slow-growing farm sector hit by a combination of low productivity and high debt of farmers, many of who committed suicide.The aim of the premier's package is to double the rate of growth of agriculture, which contributes 20 per cent to India's GDP, to four per cent, a government spokesman told reporters here on Tuesday evening after a meeting of a special meeting of chief ministers of all states. Manmohan also announced a time-bound Food Security Mission to contain rising prices of food products by enhancing production of rice, wheat, pulses and edible oil to ensure their easy availability in the next four years. The federal government would provide additional assistance to the states to expedite programmes for bridging yield gaps and increasing farm productivity. The meeting adopted a resolution to raise rice production by ten million tonnes, wheat by eight million tonnes and pulses by two million tonnes by 2011-12. Manmohan said the recent rise in prices of certain food products has been the result of slow supply of response to growing demand. "Therefore, we need to work towards a rapid rise in production of rice, wheat, pulses and edible oil so that prices can be kept under check and there is adequate supply of these commodities for the common man", he said. Speaking at the meeting, Finance Minister P Chidambaram expressed concern over stagnation in food grains production during 1998-2007.
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