The Hindu Business Line : ‘Budget fails to address food security issue’

Budget talk: Mr G. Shankar (centre), Vice-President, Corporate Finance, Brakes India Ltd, addressing a panel discussion on the Union Budget 2008 at a Business Line Club in SASTRA University, Thanjavur. Also seen are Mr V.B. Athreya (left), Advisor, Food Security Studies, Dr M.S. Swaminathan Research Foundation, and Mr Vaidhyasubramaniam, Dean, Planning and Developement, SASTRA University. —

Our Bureau

Thanjavur, March 7 Food security is a major concern and the Union Budget presented by the Finance Minister, Mr P. Chidambaram, has not addressed this issue, said Mr V.B. Athreya, Adviser, Food Security Studies, Dr M. S. Swaminathan Research Foundation, here.

Participating in a panel discussion on the Union Budget 2008 organised jointly by the Shanmugha Arts Science Technology and Research Academy (SASTRA) University and the Business Line Club of SASTRA, Mr Athreya said that loan waiver is not the ever first step to deal with the agrarian crisis in the country.

He said that food production has remained stagnant at 215 million tonnes; output per hectare is stagnant for ten years now. For the first green revolution to become successful it was not technology alone that helped but credit, procurement, the national agriculture system and extension system also played major roles, he added.

He also felt that the rural distress situation has not been addressed. Though outlay has been increased for education and health, it was not sufficient, he pointed out. The Supreme Court called for universalisation of ICDS (integrated child development scheme) which would require 15 lakh ICDS centres. But only nine lakh ICDS centres has been proposed in the Budget. Though the National Rural Employment Guarantee scheme was expanded to more districts, the allocation was only Rs 16,000 crore which is not sufficient.

Mr G. Shankar, Vice-president, Corporate finance, Brakes India Ltd, said that from a corporate perspective, there is nothing much in the Budget as there is no change in corporate tax and service tax rates. On the whole, a majority of corporates will welcome this Budget.

On the Rs 60,000-crore waiver of farm loan, he said that the Finance Minister has not mentioned details of its implementation and added that the waiver alone will not solve farmers’ problems.

More Stories on : Budget | Foodgrains | Tamil Nadu

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