'Stop diverting agricultural land for SEZs'

New Delhi, Dec 29 (UNI) Agriculturists in a pre- budget meeting with Finance Minister P Chidambaram today highlighted the low profit margins of farmers, the huge indebtednes of the farm community leading to suicides in various parts of the country and asked the government not to divert agricultural land for setting up Special Eonomic Zones and for industrial use.

Mr Chidambaram held a pre-Budget meeting with a group of eminent agriculturists and agricultural experts, here today.

Welcoming the participants, he highlighted the importance of agriculture sector in the economy and requested that since agriculture is a State subject, the participants should highlight those issues, which can primarily be addressed through the Central Government. The various experts addressed the issues related to crop insurance, irrigation, water shed development, restoration of water bodies, agriculture extension, micro financing, agriculture marketing and contract farming.

In a wide-ranging discussion, the following major suggestions were made by the various invitees: - Given over-dependence of agriculture on vagaries of nature, insurance based on "weather related parameters" should receive attention in the next year's budget. Panchayats should be the unit of settlement in case of crop failures. Weather insurance premium should not range more than 3-5 per cent of the sum assured.

- The existing crop insurance scheme covers only five per cent of the farmers and hence the scheme needs to be expanded based on international experience on crop/agriculture insurance.

- Micro-infrastructure such as for irrigation under Bharat Nirman should be given benefits under Section 80 IA of the Income Tax Act.

- "On Farm Research" for local customisation should be treated as R&D in laboratories and similar benefits extended to such activities.

- Agriculture extension services needs to be strengthened with minimum of costs and leakages and with adequate degree of decentralisation.

- Special Economic Zones (SEZ) should not be allowed to encroach agriculture lands.

- Educated rural unemployed youths should be financed for enabling them to undertake dairying, poultry and service related activities.

- Major and medium irrigation should be major component of agriculture package meant for the farmers of Vidarbha region where many farmers' suicides took place.

- Based on encouraging results of "sprinkler" and "drip irrigation" in Gujarat, these facilities should be extended to other areas and to various horticulture crops.

- A "National Programme on Tissue Culture and Animal Husbandry" should be started.

- Rain water-harvesting structures for all farmers with holding size less than 5 hectares should be covered under micro finance for agriculture sector.

- More financial incentives for water management for crop protection in coastal areas and with a medium to long- term perspective should be considered.

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