Oilseeds sector says allocation should have been higher

Mr Sushil Goenka, President, SEA

The Solvent Extractors Association of India said the oilseeds sector is “disappointed' with the Budget. “The oilseeds production in the country is stagnant at around 26 million tonnes and productivity at 950 kg/hectare. Last oil year (2009-10), India imported 92 lakh tonnes of vegetable oils at a cost of over Rs 35,000 crore. In the current year, we will be forced to import 90 lakh tonnes. Hence this sector needs bigger budgetary allotment,” Mr Sushil Goenka, President of the association, said.

Mr S Sivakumar, Chief Executive Officer of ITC (Agri Businesses)

Budgetary allocation to the hitherto overlooked segments of agriculture sector – coarse cereals, fodder development, pulses, oil palm and vegetable supply chains near urban centres is a welcome change. Although the amounts are small, this allocation signals the all important shift in Government's thinking.

An additional subvention of 1 per cent over and above the current 2 per cent, to farmers repaying short term agri loans on time, will not only reduce their interest burden, but will go a long way towards improving the credit repayment culture in the post-loan-waiver scenario.

Mr D. Narain, India Region Lead – Monsanto (India)

It will be important for the Government to focus on both short term and long term measures to tackle the rising demand and stagnant production in the agricultural sector. Increasing the agricultural credit limit to Rs. 4,75,000 crore for farmers, the interest subvention to farmers paying their loans on time and capital infusion to NABARD are progressive steps. The subsidy in the fertiliser sector and reduction in customs duty on micro-irrigation products will also boost agri-productivity.

Encouragement of private investment in agro processing, improvement of supply response in the agriculture sector, investing Rs 7,860 crore in farm development, 3 per cent interest subsidy to farmers and other additional provisions towards food development and production are aspects that positively contribute for the sector.

Mr P Chengal Reddy, President of Consortium of Indian Farmers' Associations

The Union Government has finally recognised the urgency of agriculture. Measures to increase investments in the sector, particularly in food processing industry, horticulture and millets would go a long way in improving the sector

For long they have neglected the sector and last few years budgets were quite disappointing. Now they have at least initiated measures to change the course for good.

Dr. Raju Barwale, Managing Director, Mahyco Research

The union budget announcements have recognised the role of agriculture and allied sectors in raising food productivity, conserving the available resources and containing food inflation by ensuring long term food security.

Boosting crop cultivation in untapped areas through support for higher crop productivity and promoting cultivation in rain fed areas will go a long way in preparing a strong foundation for Indian agriculture in sustainable practices.

Short-term measures will not be sufficient to contain rising food prices and can often force people to cut back on their basic food needs.

Anil Kumar V Epur – Chairman (Task Force on Agriculture) of CII AP

We give 7 on 10 point scale with regard to agriculture in the Budget. It speaks on measures how to increase production, while encouraging micro irrigation, Mega Food Parks and credit intake. But the short coming is there no long-term plan. Also it doesn't speak on domestic transport of agricultural commodities.

Mr Y.Sivaji, honorary president of AP Tobacco Growers' Association

“Even though the Finance Minister has vast experience, he has not made any earnest attempt to address the basic problems plaguing the agricultural and rural sector in the country. For instance, even though the Finance Minister has hiked agricultural credit from Rs. 3,75,000 crore to Rs. 4,75,000 crore, it will not really percolate to the needy farmers in rural areas. Many banks are closing down rural branches. As many as 5,000 branches have been closed. The credit meant for the farm sector is diverted to other schemes in many ways,” he said.

He felt that banks were not providing adequate, timely credit to the farmers and the credit meant for the sector was being cornered by the manufacturers of farm equipment and other sections. The credit, he said, was being diverted to the Government schemes, Nabard-sponsored schemes and also to micro finance institutions who were lending to the rural poor at exorbitant rates of interest.

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