Presentation

Union Budget 2009-10 AGRICULTURE SECTOR

Presented By Abrar Ahmad Ansari MBA, IInd Sem. By A3

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Finance Minister Pranab Mukherjee presented the Union Budget for the financial year 2009-10. By A3

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• The Interim Agriculture Budget continues the commitment ot “food security” in India. This includes meeting the food requirement of the poor under the Targeted Public Distribution System (TPDS). • In spite of higher procurement costs and higher international prices during the last five years, central issue prices under the TPDS have been maintained at the level of July 2000 in case of Below Poverty Line (BPL) and Antyodaya Anna Yojana (AAY) categories and at July 2002 levels for Above Poverty Line (APL) category. By A3

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 The Rashtriya Krishi Vikas Yojana was launched in 2007-08 with an outlay of Rs.25 thousand crore, to increase the growth rate of the Agricultural Sector to four per cent per annum during the Eleventh Plan period.  The scheme has encouraged State Governments to develop their agricultural sectors.

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Agriculture outlook looks encouraging for 2009 if rainfall normal. Agriculture grew by 3.7 percent per annum. Plan allocation for farm sector hiked 300 percent in past five years. Rs 644 crores for National Agriculture Insurance Scheme. By A3

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 Three-fold increase in short-term agriculture credit to Rs.250,00 crore (Rs.2.5 trillion).  Credit growth to the agriculture has been robust in the past five years. Credit disbursement increased from Rs.87,000 crore in FY04 to Rs.2,50,000 crore in FY08. The agriculture debt waiver and relief scheme was implemented by June 30, 2008 and so far has amounted to Rs.65,000 crore. By A3

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 Fertiliser subsidy increased by Rs 44,863 cr from about Rs 14,000 cr during 08-09.  Rs 652 cr pumped into Regional Rural Banks  Irrigation and water resources finance corporation to be set up; rainfed area development programme to be started.  Rs 20,000 crores for Accelerated Irrigation Benefit Programme By A3

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 Minimum Support Price (MSP) for the common variety of paddy was increased  Rs.550 to Rs.900 per quintal for the crop year 2008-09.  In case of wheat the increase was from Rs.630 in 2003-04 to Rs.1,080 per quintal for the year 2009.

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 Government will continue to provide interest subvention in 2009-10 to ensure that farmers get short term crop loans upto Rs.3 lakhs at 7 per cent per annum.  Government will continue to provide additional subsidy to farmers  To strengthen the short-term co-operative credit structure, the GOI is implementing a revival package in 25 states involving a financial assistance of around Rs.13,500 crore. By A3

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