PROF. ASHOK JAYARAM, CMR Institute of Management Studies, Bangalore

FOCAL THRUST ON AGRICULTURE

Union Budget, 2011, needs to focus and earmark sizeable amounts towards development of agriculture sector which has had a ‘bad history’ of either total neglect or a ‘step-motherly’ treatment. Outlays need to ensure that agriculture benefits with a long-term perspective rather than deploy measures to suit any political motive. Irrigation, rural infrastructural facilities, transportation in rural agricultural sector merits sizeable sum to be expended. In some States, agricultural income tax still persists and this anomaly needs correction and uniformly eradicate AIT on agricultural commodities with a view to spur this sector and lure back all small and medium holders into the agricultural fold. Fertiliser subsidy has to be augmented in view of the increased cost of various agricultural inputs on inflationary wind blowing from all sides.Regional imbalances impediment experienced currently must be addressed with sufficient investment . Key food items like wheat, rice and maize must be focussed on extension of area under cultivation and enhanced productivity. Present over-hauling of PDS system is a dire need of the hour with ample warehousing facilities to be catered to especially wheat, rice et al. Rural electrification, education, banking and healthcare standards have to be stepped up and new schools and colleges in remote villages to spread education and retain this younger population post-studies so that farm labour paucity may be reduced. Export incentives can be thought of in the case of tea, rubber, coffee etc to encourage exports.