Union Budget 2011-12: fillip to Agriculture & allied sectors

Posted 28 February 2011 - 10:27pm by Editor

The Union Budget 2011-12 claims to give thrust to agriculture and allied sectors. Still the livestock and poultry farmers are not even beneficiaries of the low interest rate of 7% available to agricultural farmers for short term crop loans, leave alone the subvention of 3% of interest. Launch of National Mission for Protein Supplements,  one time grant of Rs. 100 cr. to Kerala Veterinary and Animal Sciences University, and support to Accelelerated Fodder Development Programme are the only announcements that may be of some interest to the farmers of animal husbandry sector. The major announcements made by Sri. Pranab Mukherjee today (28 February 2011) are listed here:

  • Rs. 100 cr. as one time grant to Kerala Veterinary and Animal Sciences University.
  • To provide Rs. 300 cr. to launch National Mission for Protein Supplements thereby take up activities to promote animal based protein production through livestock production, dairy development, piggery, goat rearing and fish farming .
  • To introduce National Food Security Bill in Parliament in 2011-12.
  • Full exemption from customs duty to de-oiled rice bran cake, an ingredient of cattle feeds.
  • To provide Rs.300 cr. for Accelerated Fodder Development Programme through which more milk will be produced and farmers of 25000 villages are benefited.
  • The target of credit flow to farmers by banks  raised to Rs. 475000 from Rs. 375000
  • Subvention of 3% of interest to those who repay on time thus makes an effective interest rate of 4% only to the farmers. (Short term crop loans at 7%)
  • To infuse RS. 3000 cr. to strengthen NABARD’s capital base as Government equity.
  • The total allocation of RKVY to be increased to Rs.6755 cr. to Rs. 7860 cr. in 2011-12.
  • To promote 60000 pulse villages and further enhance production from the current 165 lakh tonnes, Rs.300 cr. is earmarked.
  • To provide Rs. 300 cr. to bring 60000 ha. for oil palm cultivation.
  • To provide Rs. 300 cr. to establish an efficient supply chain management of vegetables.
  • To provide Rs. 300 cr. to promote higher production of Nutri-Cereals (Bajra, Ragi, Jowar)
  • To raise the number of Mega Food Parks to 30 from the current number of 15.
  • More storage capacity and cold chains for food grains.
  • Investment in cold storage facilities.
  • State Governments to review and enforce a reformed Agriculture Produce Marketing Act.
  • To extend the benefit of investment linked deduction to businesses engaged in the production of fertilizers.
  • To reduce the customs duty of micro irrigation equipments to 5% from the current 7.5%.