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The World Bank team headed by its president James D Wolfensohn, which called on the agriculture minister, also suggested the lifting of curbs on import and export of farm commodities.

Though Wolfensohn pointed out that the Bank had a human face and was sympathetic to the plight of the common man, the other members of the team are understood to have made a strong plea for reduction of subsidies on food, fertiliser, seed and other farm inputs.

The delegation also indirectly indicated that interventionist policies (such as land ceiling, minimum support prices) should be changed to reduce the governments role in production processes to the minimum.

 

The Bank representatives suggested that limits on international trade of farm products, including control on cotton export, should be removed.

Mishra, however, politely turned down these pleas, pointing out that such a move would put millions of people in a disadvantage. The government was concerned about the poor and did not want to do anything that went against their interests.

Lifting of curbs on cotton exports might jeopardise means of livelihood for 30 million handloom weavers, he said.

Mishra told the visiting delegation that he belonged to a party, which believed in a definite ideology.

However, he said, he would be willing to be accommodative if some useful suggestions were made. Both sides agreed to meet later for detailed discussions.

Mishra told Wolfensohn that India would be interested in getting World Bank assistance for augmenting credit availability to the farmers and improving infrastructure facilities in rural areas. He also sought suggestions from the Bank for ways to reduce the interest rates. If farmers got adequate credit at cheaper interest, they would not only be able to uplift their own economic lot but also strengthen the countrys overall economy.

The minister reiterated the governments resolve to help the poor farmers, particularly tribals, to come out of the poverty bracket. A strong agricultural sector can raise the savings in domestic sector.

Wolfensohn pointed out that the Bank was interested in the macro framework on credit and poverty alleviation. There must be global solutions to problems of poverty. Extension services and infrastructure facilities should be taken care of to improve the farm sector, he maintained.

The members of the delegation told the meeting that Bank had schemes for development of watersheds, rainfed areas and social forestry.