Farm Credit Availability May Go Up By Rs 10,000 Crore

The availability of credit to the farmers is expected to rise by about Rs 10,000 crore this year to touch the Rs 60,000-crore mark.

Revealing this at a seminar, "Fertilisers and Agriculture -- Future Directions", agriculture minister Ajit Singh said this amount should be supplemented by input suppliers like the fertiliser industry. He also urged the industry to ensure timely availability of fertilisers at reasonable prices. The seminar has been organised by the Fertiliser Association of India.

Referring to agricultural subsidies, Singh categorically stated that there was no question of eliminating them. He appreciated the stand taken by the fertiliser industry in support of subsidies to farmers.

He pointed out that the expectations of greater global market access to the Indian farmers after the setting up of the World Trade Organisation (WTO) had largely been belied. Agriculture is a way of life in India. The government should pursue agricultural issues vigorously at the WTO for maintaining the safety net for the farmers. On their part, the farmers should also gear themselves up to face growing competition by raising productivity through technology induction.

The minister suggested that a proper legal framework should be created to promote contract-farming.