Union Budget 2012-13: Agriculture outlay increased by Rs 3000 crore

NEW DELHI: For a fast track growth of agriculture, which showed 2.5% growth this year, the total plan outlay for agriculture has been increased by 18 per cent from Rs 17,123 crore in 2011-12 to Rs 20,208 crore in 2012-13. This will support the new initiatives announced in the budget besides backing the existing programmes which have resulted into record food grain production this year.

The finance minister has also proposed to increase the allocation of Rashtriya Krishi Vikas Yojna (RKVY) by 17 per cent from Rs 7,860 crore in 2011-12 to Rs 9,217 crore. This will give states much financial scope and flexibility to utilize this untied fund for bigger farm output.


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Enthused by the record paddy production in the eastern part of the country – a result of lats year’s initiative named as Bringing Green Revolution to Eastern India (BGREI), the finance minister proposed to increase the allocation for this scheme from Rs 400 crore in 2011-12 to Rs1000 crore in 2012-13.

Apart from that, the FM also announced to infuse additional allocation of Rs 500 crore to Mission for Protein Supplement for improving productivity in the dairy sector. The Rs-2,242-crore project is being launched with World Bank assistance. The scope of this programme has been broadened from production of fish to coastal aquaculture. The government will also allocate additionally for poultry, piggery and goat rearing.

The budgetary allocations have increased but analysts feel that these are inadequate for the revival of agriculture sector which has been witnessing deceleration for last so may years. “The budget lacks basic framework of agriculture revival. The steps taken are appropriate but these are baby steps and can take much time for the desired results. A revolutionary step is needed for the complete transformation of this sector,” said DK Joshi, chief economist at Crisil.