Govt should give incentives to agri sector: SMC

Financial services provider SMC Global Securities today pitched for concessional loans and direct farm credit among other key incentives to agriculture sector in the forthcoming Budget with a view to improving farm productivity and containing rising prices.

Incentives like concessional loans and direct farm credit waivers for farmers would boost the sector's growth, it said.

"Higher budgetary focus on agriculture will enable the government to achieve intended agri growth and also help it obtain the inclusive growth," SMC Global Securities said in a statement here.

The incentives to agriculture sector would also help in the growth of FMCG sector, SMC Group Chairman and Managing Director Subash Chand Aggarwal said.

He said that India has already witnessed good monsoon, which would increase agricultural production and strengthen purchasing power of farmers.

"Incentivising farming community through budgetary measures will enrich common folks to make them access products and articles of FMCG companies and arrest likely price distortions," he added.

Indian industry has also called for the government to provide tax incentives on agricultural activities in the Budget to encourage private participation and adoption of new technologies in the sector.

According to the government’s advance estimates, the output of the agriculture and allied sectors is likely to grow by 5.4% in 2010-11, compared to just 0.4% in 2009-10.