State wants lion's share of farm aid
Seeks over Rs 15k cr under Centre’s Rs 25k-cr NDC package for sector.
By Abhiram Ghadyalpatil, TNN |
MUMBAI: Maharashtra has sought Rs 15,849 crore in central assistance under the National Development Council’s (NDC) Rs 25,000-crore agri investment plan and has submitted a host of proposals to the Centre in this regard.
Officials from the agriculture department told ET that Prime Minister Manmohan Singh, who took stock of Maharashtra’s farm scenario last week, was briefed about the state’s strategy to improve agriculture growth to 4.4% during the 11th Plan (2007-12).
“Maharashtra requires huge central assistance not only to lift the farmers in the state from an agriculture crisis, but also to make farming a profitable venture. There is a mismatch between Maharashtra’s rapid industrialisation and the worsening agriculture situation. The state is also going through rapid urbanisation, which is putting pressure on urban infrastructure. Agriculture and farm-based industries have to be made viable to check distress migration from villages,” a senior official who had made the presentation before the prime minister told ET.
The Centre is likely to set tough parameters for states to be eligible for hefty allocations under the NDC programme. The NDC wants every rupee that is going to be invested in the farm sector to ensure good returns. “States will have to identify their weak areas and increase budgetary spend on agriculture. Central assistance will be in proportion to the state’s budgetary allocation and spend,” a Union government official said.
Maharashtra appears to have set its priorities right while seeking the central aid. The state’s irrigation network, one of the worst in the country, would require a funds infusion of Rs 10,000 crore from the Centre under the 11th Plan, according to state officials’ estimates. “This is only one-third of the total investment we need during the 11th Plan to take Maharashtra’s irrigation coverage closer to the national average of 43% of the potential,” said another official. So far, the state has achieved only 18% of irrigation potential.
For core agriculture activity, the state has asked for an investment of Rs 4,000 crore over five years from the Centre. More than Rs 3,000 crore of it has been planned for watershed development and minor irrigation, sources said. The state is also hard-selling its impressive performance in disbursal of crop credit through formal sources of lending over the past three years.
“The agriculture credit flow in Maharashtra has increased by 170%, from Rs 4,470 crore in 2003-04 to Rs 12,084 crore in 2006-07. We need to take new measures to improve credit flow further and have sought central assistance of Rs 500 crore to revive co-operative credit societies and ensure IT connectivity between credit institutions and commodity exchange,” a state official said. Likewise, reforms in the agriculture marketing sector are also being advertised by the state to get a grant of Rs 500 crore.
Officials from the agriculture department told ET that Prime Minister Manmohan Singh, who took stock of Maharashtra’s farm scenario last week, was briefed about the state’s strategy to improve agriculture growth to 4.4% during the 11th Plan (2007-12).
“Maharashtra requires huge central assistance not only to lift the farmers in the state from an agriculture crisis, but also to make farming a profitable venture. There is a mismatch between Maharashtra’s rapid industrialisation and the worsening agriculture situation. The state is also going through rapid urbanisation, which is putting pressure on urban infrastructure. Agriculture and farm-based industries have to be made viable to check distress migration from villages,” a senior official who had made the presentation before the prime minister told ET.
The Centre is likely to set tough parameters for states to be eligible for hefty allocations under the NDC programme. The NDC wants every rupee that is going to be invested in the farm sector to ensure good returns. “States will have to identify their weak areas and increase budgetary spend on agriculture. Central assistance will be in proportion to the state’s budgetary allocation and spend,” a Union government official said.
Maharashtra appears to have set its priorities right while seeking the central aid. The state’s irrigation network, one of the worst in the country, would require a funds infusion of Rs 10,000 crore from the Centre under the 11th Plan, according to state officials’ estimates. “This is only one-third of the total investment we need during the 11th Plan to take Maharashtra’s irrigation coverage closer to the national average of 43% of the potential,” said another official. So far, the state has achieved only 18% of irrigation potential.
For core agriculture activity, the state has asked for an investment of Rs 4,000 crore over five years from the Centre. More than Rs 3,000 crore of it has been planned for watershed development and minor irrigation, sources said. The state is also hard-selling its impressive performance in disbursal of crop credit through formal sources of lending over the past three years.
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“The agriculture credit flow in Maharashtra has increased by 170%, from Rs 4,470 crore in 2003-04 to Rs 12,084 crore in 2006-07. We need to take new measures to improve credit flow further and have sought central assistance of Rs 500 crore to revive co-operative credit societies and ensure IT connectivity between credit institutions and commodity exchange,” a state official said. Likewise, reforms in the agriculture marketing sector are also being advertised by the state to get a grant of Rs 500 crore.
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