6% sectoral growth in agriculture in FY11: FM

Finance Minister Pranab Mukherjee started his pre-budget consultations for the preparation of the Union Budget 2011-12 today, by meeting stakeholders from the agricultural sector. The meeting came amidst rising concerns of soaring food prices and the Income Tax Department raiding open markets in Ludhiana and Chandigarh to check speculative and hoarding activities.

This is the first time that discussion with agriculturists has preceded that with industry and economic experts, indicating the increased prominence and focus the government wants to give to the sector.

The major recommendations ranged from appeals for increased subsidies, encouraging bio-fuels and tax exemptions to promote mechanisation, exemption of octroi and mandi tax to reduce inflation in essential commodities besides others.

The meeting was held with 17 members from various fields of agriculture and allied sectors, prominent being Director (Asia) of International Food Policy Research Institute (IFPRI), Ashok Gulati, Nafed Chairman Bijender Singh and agriculturist Sharad Joshi.

At the start of the meeting, Mukherjee said given a normal monsoon, he was looking at a 6 per cent growth in agriculture in the financial year, compared to a drought-affected 0.1 per cent in the previous year.