TN to promote agri-allied activities

The Tamil Nadu government has decided to promote agri-allied industry, to treble small and marginal farmers’ income in five years. It is also planning to promote new clusters and form companies in which these farmers will hold a stake.

In the interim Budget, the state government had earmarked Rs 3,000 crore in crop loans for disbursal through cooperatives in 2011-12. “Despite implementing several programmes and spending crores of rupees, the income level of farmers is not registering any perceptible improvement,” Tamil Nadu Chief Minister J Jayalalithaa had said recently.

Initiatives such as adoption of scientific agronomic practices, popularisation of efficient ways of using water, farm mechanisation and strengthening of post-harvest infrastructure, are to be undertaken to ensure a “second green revolution”.

Flagship programmes like distribution of milch cows, goats and sheep to poor families will also be adopted, to strengthen the mixed farming system in the rural areas and assure sustainable income to rural households.

A 100 per cent subsidy will be given to small and tiny farmers going for micro irrigation and 75 per cent to other farmers opting for the scheme. Tiny farmers can get subsidy for up to 2.5 acres of land and small farmers can get subsidy for up to five acres. Those pursuing agriculture on leased lands can also get the benefit. Farmers can select companies to buy micro irrigation equipment, but these will have to be authorised by the Tamil Nadu Horticulture Development Agency.

The government plans to promote agri-related clusters in dry areas. Allied agricultural activities, such as animal husbandry, in dry areas are also in the government’s mind. The government has decided to encourage private companies to set up agro-processing industries in a cluster mode, with farmers holding at least 25 per cent of the equity capital in such companies, which will be sponsored by the government. Five such units would be set up by next year, said a senior official.