PM announces major coop farm credit package

Nainital, Sep 23: Expressing concern over the poor rate of growth in agriculture and resultant indebtedness of farmers, Prime Minister Manmohan Singh today announced a Rs 13,000-crore ''cooperative credit package'' to improve the reach of institutional credit to the farmers and asked the states to have district-level agricultural plans.

Addressing a two-day Conclave of Chief Ministers of 14 Congress-ruled states, he asked the states to set annual goals in agriculture as part of the efforts to transform the sector which continued to support two thirds of the population.

Pointing out that agricultural indebtedness was a major cause of concern in many regions, he cited low prices for farm produce, high cost of agriculture, crop failures and high cost of credit as the reasons for the situation.

Dr Singh, who will sit through the entire two day proceedings, said the Expert Group set up to look into the problems of agricultural indebtedness in its totality would submit its recommendations in the next few months. The Group would suggest measures for providing relief to farmers across the country.

Referring to suicides by farmers, Dr Singh said a Rs 3,750 crore package for the six suicide-affected districts of Vidarbha region had been announced covering every aspect of agricultural household . ''A similar package is being prepared for districts of Andhra Pradesh, Karnataka and Kerala, covering 31 districts in the country.

The package incudes waiver of interest on overdue loans, rescheduling of loans, enhancing credit flow, irrigation, watershed development, horticulture, subsidiary income through animal husbandry.'' Underlining the need to achieve new breakthroughs and scale new heights in agriculture, Dr Singh said there was a need to pay attention to land reforms and the consolidation of land holdings and protect the interests of share croppers and small and marginal farmers.

''We cannot rest on past laurels.We need to free agricultural markets from unnecessary regulations which would certainly benefit the farmers.'' Suggesting to the states to have district-level agricultural plans, Dr Singh also asked them to review periodically the progress in agriculture in their states. ''Reforms to APMC Acts need to be pursued without delay. Farm production, input supply, post-harvest management and food processing need to be attended to holistically.'' Dr Singh said that the ''next big breakthrough in agriculture'' will be in the areas which were still dependent on rain for farming.

''Such areas constitute 70 per cent of our country and they happen to be the less developed, economically poorer one as well.'' In this context, he said that ''the elements which helped the Green Revolution happen under the leadership of Indira Gandhi, need to be replicated in these regions now.'' ''We need vision, technology and administrative capability to transform the rainfed areas,'' he said, asking the states to focus on the world that needed to be done in rainfed areas and utilise the programmes of the Rainfed Area Authority, whose work had to be done through effective state-level agencies.

Regretting that agriculture research and extension system had been neglected over the last few years and there was a visible decline in extension capabilities, Dr Singh pointed out that this ''critical work'' could not be left purely to market forces.

In this context, he asked the states to have effective strategies for improving their extension services and focus on integrating the work of Krishi Vigyan Kendras in districts into their agricultural strategies.

UNI