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| STATEMENT OF PROF
M.S. SWAMINATHAN, CHAIRMAN, NATIONAL COMMISSION ON FARMERS
ON THE UNION BUDGET 2006-07 |
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| As desired, I give below
my views on the Union Budget for 2006-07 in the context
of the urgent need for agricultural renewal and renaissance.
Using the Finance Minister’s terminology ‘best of times’
and ‘worst of times’ improvement in agricultural growth
to about 2.3% as well as food production to over 209
million tons is a good sign. Atleast the agricultural
growth rate is now slightly above the population growth
rate. In relation to the ‘worst of times’ our farmers
who number 25% of the world’ s farming population have
been subjected to serious problems of climate aberrations,
land degradation and market failure. Market fluctuations
continue to be very adverse to small growers of vegetables
like tomato, onion and potato and other perishable commodities.
I am afraid the seriousness of the agricultural crisis
has not been fully captured in the budgetary initiatives.
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| The allocations for
rural infrastructure development through Bharat Nirman
particularly for bringing 6 lakh hectares of additional
area under irrigation would certainly help to improve
farm productivity. The allocation for the National Rural
Employment Guarantee Scheme, if properly utilized should
help to upgrade degraded land and improve soil health
and water management. If the gender budgeting is done
properly in relation to rural investments there should
be some relief to female workers whose share in the
total work force is increasing. |
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| Enhancement of agricultural
credit and the plan for giving credit to 5 million more
farmers is a welcome one. The most significant and timely
assistance given to resource poor farmers is the provision
of short term credit at 7% upto a limit of Rs. 3 lakhs.
The proposal to give relief to those who are currently
severely indebted is also a welcome one. The move to
provide separate credit windows to Self Help Groups
of tenant farmers is another welcome step. I am glad
provision has also been made to revive agricultural
cooperative credit institutions. |
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| The steps to strengthen
the National Horticulture Mission in the North East
by establishing a Central Institute of Horticulture
in Nagaland is a welcome one. At present most Technology
Missions are subsidy rich and technology poor. There
is also provision for establishing a National Fisheries
Development Board and a National Jute Board. These Boards
will serve a useful purpose only if they are structured
as professional bodies attending to all links in the
production-consumption chain in an integrated manner.. |
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| I also welcome the steps
indicated in the budget for increasing opportunities
for rural non-farm employment. Thus, the support to
cotton textiles and particularly to the handloom sector,
handicrafts and food processing will help to diversify
income avenues in villages. Strengthening the technological
back-up to food processing through the establishment
of a National Food Processing Technology Institute and
the upgrading of the Paddy Processing Centre at Tanjore
will be helpful. |
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| I am also happy that
the contribution of our agricultural universities has
been recognized through the allocation of Rs. 100 crores
to the Punjab Agricultural University, Ludhiana. I only
wish that similar recognition had been given to the
Indian Agricultural Research Institute, New Delhi which
completed 100 years of glorious service to the nation
last year. The only additional support indicated for
agricultural research is the initiation of a World Bank
Project. |
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| In short, the budget
has made a brave attempt to restart our agricultural
advance. I only wish that the suggestions given by the
National Commission on farmers for our agricultural
renewal and renaissance had been given greater attention.
In particular, market reforms and market infrastructure
are crying for attention. |
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| Agriculture being a
State subject, I hope the State budgets will fill the
serious gaps. The Union budget has however failed to
convey the message that if agriculture goes wrong, nothing
else will have a chance to go right. |
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| M.S.Swaminathan |
| New Delhi |
| Dated: 28th February,
2006 |
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