Farm sector gets Rs 520 crore

The Tamil Nadu government has earmarked over Rs 520 crore for the agriculture department to set up warehouses, cold storage units, provide insurance cover for crops and for various grants and subsidy.

State agriculture minister Veerapandi S Arumugam said the government would offer grants and subsidy to the tune of around Rs 40 crore for 2.5 million farmers during the current fiscal. It would spend around Rs 200 crore as premium towards covering farmers’ crops through Agriculture Insurance Company.

During the last financial year, 850,000 farmers were covered under the insurance scheme and claims to the tune Rs 279.55 crore were paid.

The government is planning to expand horticulture in 20 districts across the state through cooperative. In 2007-08, the department spent Rs 166.21 crore and for the current fiscal Rs 112.94 crore has been allocated. Another Rs 10 crore has been allocated for setting up a flower garden on 18 acres at Chennai.

The government would also initiate steps to bring 750,000 hectares under the rice intensification system during 2009-2010. It would also procure 18,000 tonne of paddy seeds, 450 tonne of millets, 2,500 tonne of pulses, 6,386 tonne of oil seeds and 175 tonne of cotton seeds.