Obviously aimed at the assembly elections in Tamil Nadu, West Bengal, Assam, Kerala and Pondicherry this year, the party's highest policy-making forum resolved to send 13 proposals to the government on the eve of the Budget-all pertaining to agriculture.

The proposals include reduction of import duties on essential agriculture inputs such as fertilisers and agriculture machinery, removal of restrictions on movement of foodgrains from one state to another, rationalisation of fertiliser subsidy, raising of import duties on farm products to the bound level so as to protect the domestic agricultural goods, further incentives to food processing industries, introduction of food for work programme, immediate implementation of insurance-linked crop loans, limiting the role of FCI to maintain buffer stock while, at the same time, involving private sector in procuring, storage and distribution of foodgrains under PDS, and no harassment to farmers for loan default on genuine grounds.

The national executive also considered the possibility of reducing the diesel prices on the plea that its international prices had now gone down. It was also included in the economic resolution, but was dropped at the last moment following stiff opposition from petroleum minister Ram Naik.

The tone of the resolution was set by party president Bangaru Laxman, who in his inaugural address referred to the plight of farmers and small industries and said: "In these two days, we have to apply our minds to the task of preparing the party organisation to face the elections to the state assemblies...we have to analyse the political situation and put together effective strategies for these states."

Taking the populist path in favour of small industries, Mr Laxman took note of their concern against import of cheap Chinese goods and advised the government to check "the unrestricted flow of cheap Chinese goods, which are being dumped in the country."

Politicising the farmers' cause, the national executive's economic resolution sought to blame the opposition parties for "misguiding the farmers that import of agricultural produces resulted in fall in prices of domestic farm produces."

Admitting that many farm products are open for import as per the WTO commitment, the resolution maintained that the actual import does not support any such fear except in the case of soyabean oils.

It said that the imports of agricultural products, as a whole, came down from Rs 12,584.08 crore in 1998-99 to Rs 11,510.09 crore in 1999-2000. And if one took into consideration depreciation of rupee against the dollar, the actual fall would be more, it noted.

The economic resolution further said that the share of agricultural imports in the total imports came down from 7.05 per cent in 1998-99 to 5.63 per cent in 1999-2000. Besides, it said, the government has also raised the tariff on import of foodgrains from 80 per cent to 100 per cent. It attributed the fall in prices of agricultural commodities to the lack of free movement and threat of imports.

Briefing the press later, party's senior vice-president Jana Krishnamoorthy, took pride in announcing that the country had become a "surplus nation" in terms of foodgrains unlike a "nation of shortages" in the past. But there were certain inherent obstacles which deterred the farmers from getting just prices for their produce. This will be now taken care of once the suggestions are accepted by the government, he added. "Reform in the agricultural sector is a must to take care of the inherent problems in the overall interests of farmers and consumers," he added.

The party lauded the Vajpayee government's performance, in general, and is all set to adopt political resolution at its concluding session on Friday.

The political resolution will touch the Prime Minister's peace initiatives in Jammu and Kashmir as also North East.

The two-day event will be capped by the Prime Minister's valedictory address on Friday during which he is expected to respond to some of the concerns the national executive chose to highlight.

Finance Minister Yashwant Sinha gave a brief exposition of the economic scenario in the country before the national executive discussed the economic resolution. According to party's think-tank Jagdish Shettigar, the Finance Minister generally spoke well of the country's economy while admitting of certain constraints. He did not elaborate.