Union Budget 2009-10

AGRICULTURE
SECTOR

Presented By
Abrar Ahmad Ansari

MBA, IInd Sem.

By A3 1
 Finance Minister
Pranab Mukherjee presented the
Union Budget for the financial year
2009-10.
By A3 2
• The Interim Agriculture Budget continues the
commitment ot “food security” in India. This
includes meeting the food requirement of the
poor under the Targeted Public Distribution
System (TPDS).
• In spite of higher procurement costs and higher
international prices during the last five years,
central issue prices under the TPDS have been
maintained at the level of July 2000 in case of
Below Poverty Line (BPL) and Antyodaya
Anna Yojana (AAY) categories and at July
2002 levels for Above Poverty Line (APL)
category.
By A3 3
 The Rashtriya Krishi Vikas Yojana was
launched in 2007-08 with an outlay of Rs.25
thousand crore, to increase the growth rate of
the Agricultural Sector to four per cent per
annum during the Eleventh Plan period.
 The scheme has encouraged State
Governments to develop their agricultural
sectors.

By A3 4
 Agriculture outlook looks encouraging for
2009 if rainfall normal.

Agriculture grew by 3.7 percent per

annum.

Plan allocation for farm sector hiked 300

percent in past five years.

Rs 644 crores for National Agriculture

Insurance Scheme.
By A3 5
 Three-fold increase in short-term agriculture credit to
Rs.250,00 crore (Rs.2.5 trillion).

 Credit growth to the agriculture has been robust in the

past five years. Credit disbursement increased from
Rs.87,000 crore in FY04 to Rs.2,50,000 crore in
FY08. The agriculture debt waiver and relief scheme
was implemented by June 30, 2008 and so far has
amounted to Rs.65,000 crore.

By A3 6
 Fertiliser subsidy increased by Rs 44,863 cr
from about Rs 14,000 cr during 08-09.

 Rs 652 cr pumped into Regional Rural Banks

 Irrigation and water resources finance

corporation to be set up; rainfed area
development programme to be started.

 Rs 20,000 crores for Accelerated Irrigation

Benefit Programme
By A3 7
 Minimum Support Price (MSP) for the
common variety of paddy was increased
 Rs.550 to Rs.900 per quintal for the crop year
2008-09.
 In case of wheat the increase was from Rs.630
in 2003-04 to Rs.1,080 per quintal for the year
2009.

By A3 8
 Government will continue to provide interest
subvention in 2009-10 to ensure that farmers
get short term crop loans upto Rs.3 lakhs at 7
per cent per annum.

 Government will continue to provide

additional subsidy to farmers

 To strengthen the short-term co-operative

credit structure, the GOI is implementing a
revival package in 25 states involving a
financial assistance of around Rs.13,500 crore.
By A3 9