Budget 2013: Government unveils new farm schemes with outlay of over Rs 1,000 cr

NEW DELHI: To boost agriculture and allied sector growth to the targeted 4 per cent for the next five years, the government today unveiled three new schemes with a budget allocation of over Rs 1,000 crore.


It also enhanced funding for ongoing programmes such as Rashtriya Krishi Vikas Yojana and National Food Security Mission.

Outlay for the Agriculture Ministry has been raised by 22 per cent to Rs 27,049 crore for 2013-14 fiscal, of which the agricultural research will be provided with Rs 3,415 crore.

Concerned over stagnant farm yields in states like Punjab and Haryana, covered during the Green Revolution of 1960s, Finance Minister P Chidambaram today proposed Rs 500 crore to encourage farmers there to switch to alternative crops from traditional rice and wheat.

"The original Green Revolution states faced the problem of stagnating yields and over exploitation of water resources. The answer lies in crop diversification.

"I proposed to allocate Rs 500 crore to start a programme of crop diversification that will promote technological innovation and encourage farmers to crop alternatives," the minister said while presenting the Budget 2013-14.

To deal with malnutrition, Chidambaram allocated Rs 200 crore for a pilot programme to promote cultivation of micro- nutrient rich crops.

"Eminent agricultural scientists have suggested that we have to start a pilot programme on nutri-farms for introducing new crop varieties that are rich in micro-nutrients such as iron-rich bajra, protein-rich maize and zinc-rich wheat. I propose to provide a sum of upto Rs 200 crore to start the pilots," he said.

The Ministry of Agriculture will formulate a scheme for that, he said, and expressed the hope that agribusinesses and farmers will come together to start a sufficient number of pilot programmes in the districts most affected by malnutrition.

That apart, the minister announced the launch of the National Livestock Mission in 2013-14 to attract investments and enhance productivity taking into account the local agro-climatic conditions.

"I propose to provide Rs 307 crore for the mission. There will be a sub-mission for increasing the availability of feed and fodder," he added.

To promote market facilities for farmers, the government announced its support to setting up of Farmers Producers Organisation (FPO) with an allocation of Rs 50 crore matching equity grants for registration process.

Each FPO will get a maximum of Rs 10 lakh to leverage working capital from financial institutions.

Besides, a credit guarantee fund will be created in a small farmers agri-business corporation with an initial corpus of Rs 100 crore. "I urge state governments to support such FPOs with necessary amendments to the APMC Acts and other ways," the minister said.