Tuesday, March 9, 2010

FARM & RD BUDGET - 2010 in a Nutshell

The Union Budget 2010-11 announces a 4 pronged strategy for Growth of Agriculture viz. increasing agricultural production, Reduction in wastage of produce, Credit support to farmers and impetus to food processing sector.
Agricultural Production:

1. Rs. 400 Crore have been provided in the budget 2010-11 for extension of Green Revolution to the eastern region of the country comprising Bihar, Chhattisgarh, Eastern UP, West Bengal, Orissa.

2. Rs. 300 Crore have been provided to organize 60 thousands “Pulses and Oil seed villages” .

3. Rs. 200 Crore have been provided for sustaining the gains already made in the green revolution areas through conservation farming for soil health, water conservation and preservation of biodiversity.

Reduction of wastage of produce:

1. To bring down the difference between farm gate, wholesale & retail prices government considering the opening up of retail trade

2. Government plans to meet the deficit in storage capacity through ongoing scheme for private sectors which involves hiring the go downs from private parties for 7 years by Food corporation of India.

Credit Support to farmers:

1. For Year 2010-11 a target of Rs.375000 crore of Agricultural Credit has been fixed.

2. Period for repayment of loan has been extended for farmers under the Debt waiver and Debt relief Scheme

3. Those farmers who pay the short term crop loans in time eligible to get 2% interest subvention in 2010-11 (it was 1 % earlier)

Impetus to Food Processing Sector:

1. Apart from the 10 mega food park projects, Government decides to set up 5 more mega food parks

2. Now External commercial Borrowings will be available for cold storage or cold room facilities.

Total Outlays for Agriculture Ministry in Budget 2010-11 is Rs. 11880 Crore which involves Department of Agriculture and Cooperation (Rs. 8280 crore) Department of Agricultural Research and Education (Rs. 2300 Crore) Department of Animal Husbandry, Dairying and Fisheries (Rs 1300 Crore) . Outlay on some programmes is as under:

1. Rs. 6722 crore have been provided for Rastriya Krishi Vikas Yojna.

2. Rs. 1350 Crore have been provided for National Food Security Mission which includes Rs. 129.50 Crores for North East India

3. Rs. 950 Crores have been provided for National Agricultural Insurance scheme (NAIS) which is in operation since Rabi 1999-2000 season.

4. Rs. 500 crore have been made for Integrated Oil seed, oil palm, Pulses and maize Development.

5. Rs. 1050 Crores have been provided for crop insurance

6. Rs. 400 Crore have been provided for Technology Mission on Horticulture in North Eastern Region, Jammu & Kashmir, Himachal Pradesh and Uttrakhand

7. Rs. 1,061.98 crore have been provided for National Horticulture Mission

8. Rs. Rs. 1,000 crore have been provided for Micro- Irrigation

9. Rs. 1000 Crore have been provided for Macro Management of Agriculture

FM stresses on the need to make growth more broad-based.

  • Double digit food inflation due to bad monsoon and drought, Govt is conscious of the situation and taking steps to tackle it

  • Need to strengthen food security, accepts FM and So, Govt is getting ready with Food Security bill

  • Nutrient-based fertiliser subsidy scheme to come into force from April 1, 2010

  • Deficit in foodgrains storage capacity to be met by private sector participation

  • Rs 400 crore to boost farm output in eastern India

  • Rs 300 cr for Rashtriya Krishi Vikas Yojna (RKVY)

  • Rs 200 crore provided for climate resilient agriculture initiative

  • Rs 100 crore allocated for women farmers

  • Stimulus package to continue in the view of droughts and flood in many parts of the country

  • Timely repayment of crop loans : subvention raised from 1% to 2% and Farm loan repayment extended by 6 months.

  • Crop loan at 5% interest for farmers

  • Agricultural seeds exempt from service tax

  • Rs 1,200 cr for drought mitigation in Bundelkand area

  • External Commercial Borrowings to be available for cold storage

  • Govt to set up 5 more mega food parks

  • Rs 66,100 cr for rural development and NREG scheme allocation stepped up

  • NREGS gets Rs 40,100 crore in FY11 and Smart card extended to NREGA

  • All villages with 2000+ population to get banking facilities by 2012

  • 46% of total plan dedicated to infrastructure

  • Plan outlay for Renewable energy ministry up 61%

Rural Development in Budget 2010-11

The budget 2010-11provides a total of Rs. 66100 crore Rupees for Rural Development.

The total Central plan outlay for Department of Rural Development has been kept Rs. 76,100 crore, this includes Rs. 10,000 crore IEBR (Internal and Extra Budgetary Resources)

Allocation for Mahatma Gandhi National Rural Employment Guarantee Scheme has been stepped up to Rs. 40,100 crore from 39,100 crore in 2010-11.

Unit cost under India Awas Yojna has been increased to Rs. 45000 in plain areas and Rs. 48500 in the hilly areas.

Allocation for Indira Awas Yojna has been increased from Rs. 8800 crore in Budget 2009-10 to Rs. 10,000 crore in 2010-11.

Allocation to Backward Region Grant Fund has been enhanced by 26% from 5800 crore in 2009-10 to 7300 crore in 2010-11.

Additional central assistance of Rs. 1200 Crore has been provided for drought mitigation in the Bundelkhand region.

Important Outlays:

Swarnjayanti Gram Swarozgar Yojna: Rs. 2984 Crore including Rs. 301 crore for NE region

Rs. 2458 Crore have been kept for Integrated Watershed Management Programme

Rs. 40100 Crore have been provided for MNREGA

Apart from this Rs. 1016 crore have been kept for Other Rural Development Programmes such as DRDA Administration (Rs. 405 Crore), NIRD National Institute of Rural Development (Rs. 105 Crore) , CAPART (Council for Advancement of People’s Action and Rural Technology) Rs. 100 Crore , Provision for Urban Amenities in Rural Areas (PURA) (Rs. 124 crore), Management Support to Rural Development programmes and strengthening of district planning process (Rs. 120 crore) and BPL Survey (Rs. 162 crore). A provision of Rs. 92 crore has been kept separately as lumpsum provision for the projects/schemes in the North Eastern Region and Sikkim.

A total of Rs. 120 Crore has been kept for Ministry of Panchayati Raj which includes 12 Crores in North east and Sikkim, apart from this Assistance for state plans under the backward Regions Grant Fund is Rs. 5050 Crore.

Rs. 201 crore has been kept for land Reforms in India.

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