The government has clearly stated its objectives of lowering fiscal deficit in a phased manner with a target set for the next three years. Allocation of funds to the social sector has been enhanced with equal focus on mobilising the resources. To spur the growth in agriculture, the government has indicated a four-pronged strategy covering (a) agricultural production; (b) reduction in wastage of produce; (c) credit support to farmers; and (d) a thrust to the food processing sector.
In agriculture production, it talks about extending Green Revolution to the eastern part of the country. This is the right approach as these areas are fertile and there is a wide gap between the present productivity and its vast potential. However, a meagre provision of Rs 400 crore will not be sufficient to do justice for the entire region. The government proposes to create 60,000 ?pulses and oil seed villages? in rain-fed areas during 2010-11 and provide an integrated intervention for water harvesting, watershed management and soil health, to enhance the productivity of the dry land farming areas. Allocation of funds is only Rs 300 crore that too integrated with the Rashtriya Krishi Vikas Yojana. This announcement is noble as India is deficient in the pulses and oilseeds and much needed emphasis is required to enhance the production and productivity of both the group of crops. The key lies in implementing the same successfully. Overall, the government seems to focus on agriculture production but allocation of funds needs to be seriously analysed.
The government is concerned with the significant wastages of grains procured for the buffer and public distribution due to acute shortage of storage capacity of Food Corporation of India (FCI). As proposed by the government, this can be met through ongoing scheme for private sector participation where FCI has been hiring godowns from private parties for a guaranteed period of 5 years, which is now extended to 7 years. This will boost private investment in the creation of storage infrastructure.
To strengthen the agriculture marketing chain, National Spot Exchange (NSEL) provides electronic market on ex-warehouse basis. NSEL has developed a pan India warehousing network with efficient warehousing management with guarantee for quantity and quality. FCI can make use of the facilities of NSEL accredited warehouse for its buffer stocks procurement and OMSS distribution. Also, FCI can sell the food grain on ex-warehouse basis electronically through NSEL platform to its bulk purchasers without any investment on the fixed asset.
The views are personal