Pranab Mukherjee kicks off pre budget meeting

Expressing concern on the slowdown of overall GDP and as well as agriculture not attaining 4 per cent, Union Finance Minister Pranab Mukherjee on Wednesday deliberated on issues of investments in the farming sector, improving supply chain management and how to increase farm income.

All these and other pressing issues were brainstormed at the three long hour pre-budget meeting chaired by Mukherjee along with representatives and expert of farming sector at the North Block in the Capital that houses Finance Ministry.

Emerging out of the meeting, Commission for Agriculture Cost & Prices P chairman Ashok Gulati told reporters, "One of the issue flagged by Finance Minister included high food inflation during last one year. The meeting also dealt in detailon how to control inflation,boost investment in agriculture and bring reforms like warehouse reciepts, storage facilities."

Asked if the Finance Minister had given any assurance, Prof Gulati said, "FM will not respond till the delivery date. He will listen to all the experts." But more candid was one of the representative from farmiing sector, P Chengal Reddy, Secretary General, Consortium of Indian Farmer Association that government should seriously tackle farm crisis rather than running popular schemes and remove controls in farm sector.

"They are interested in implementing populist schemes like MNREGA and isplanning to implementingfood security bill.But we are demanding reforms in the farm sector. Why should there be controls in farming sector?", Reddy asked.

Demanding foreign direct investment irrgation, Reddy asked Mukherjee as to why government was liberal in FDI in sensitive sectors like Defence and Telecom and not agriculture.

CIFA secretary general also wanted investments in piggery, fisheries and diary to over come the problem of malnutrition. However pre-budget consultations with industrialists have been put off to January 31. This meeting was earlier scheduled for January 13.

Some of the demands from farming sector include-

* Removing controls on trading, exports of rice, wheat and sugar and cotton.

* Increasing public & private investments in retail, irrigation, agriculture research and extension and mechanization.

* Incentivizing dairy development, acquaculture and animal husbandry.

* Establishment of commodity boards for pulses, maize, potato, horticulture.

* Farmers's friendly with MNREGA.

* Convene Special Parliament Session on Swaminathan Committee report.

* Farm credit at 4 per cent.

* Increase budget allotment for ICAR in PPP model.

* Fixing time bond natural calamities evaluvation and compensation within 60 days.