Farm growth expectation unchanged: RBI

Despite the country experiencing deficient rainfall, the Reserve Bank of India (RBI) has not changed its growth projections for the agricultural sector in the current financial year.

It expects the farm sector to grow at 4 per cent in 2009-10.

“It (farm growth expectation) was given in the month of July. It will be again given in October. Till October, we are not going to change the number,” KC Chakrabarty, deputy governor of RBI, told at the sidelines of a seminar on Monday.

He, however, said drought would always be a concern. He highlighted the need for relocation of surplus agricultural labour to other sectors for sustaining economic growth. When asked if extension of repayment under farm loan waiver scheme would weaken credit discipline, Chakrabarty said, “It is important to help those who need the relief package. Helping the poor can never create moral hazard on credit discipline,” he said.