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Agriculture is to be given prime importance in the national economic activities. The fact that farmers are not getting their due is evident from the increasing suicide attempts of late. The reasons cited for the same is lack of irrigation, inadequate credit flow, increased input costs, non-availability of markets on the supply side. Even though credit is available from the financial sector currently at affordable price, how long this will sustain is to be seen, as lending interest rates are heading upward in the banking sector. Much can be done in the ensuing Budget for eradicating these problems. An agriculture subsidy cess can be introduced, both in the national level in income-tax, and at state level in sales tax. This cess can be utilised for funding the input subsidy and concessional rate of interest for farm lending. If the input costs and interest rates are reduced considerably, it will, in turn, reduce the farm output costs reducing the burden on the common consumer. This will cool down the present escalating inflation rate. Also farming will become attractive as compared to the present finding that 40 per cent of farmers if given a choice are willing to quit farming.

P. K. Viswanathan, Faculty,

Indian Bank Staff Training Centre, Thiruvananthapuram

More Stories on : Budget | Agriculture

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