DIVERSIFICATION: CM seeks budgetary provision for diversification of agriculture

New Delhi, October 29, 2012: Punjab Chief Minister Parkash Singh Badal today demanded a special budgetary provision in the next Union Budget for diversification of agriculture in the North West states especially for Punjab on the similar pattern of economic package to boost agriculture in the eastern states in the country.

The Chief Minister met Union Agriculture Minister Sharad Pawar here in his office at Krishi Bhawan this evening and sought the Government of India’s (GoI’s) support and co-operation for giving impetus to the much needed Agriculture diversification program in the state as the traditional wheat/paddy cycle was no more profitable due to the squeezed margins on account of high agriculture inputs and low MSP.

He urged the Union Minister that it was the need of hour for GoI to come forward to bail out its beleaguered peasantry by incentivizing the promotion of the cultivation of alternative crops to paddy and wheat adding that this was not merely a problem of Punjab but must be viewed in a broad perspective as national problem.

The Chief Minister emphasized the need to immediately launch a technology mission for 'Diversification of Agriculture in Green Revolution Areas' with an allocation of Rs 5000 crore for 12^th Five Year Plan period, on the pattern of the mission for 'Bringing Green Revolution to the Eastern India'. Mr Badal underscored the need for diversification away from the production of food crops mainly Rice, which was utmost necessary to sustainably manage the natural resource base and to adjust to the changes taking place in the domestic demand and supply of food grains.

Outlining the diversification program, the Chief Minister apprised Pawar that the state government has planned to reduce the area under paddy from 28 to 16 lakh hectares in a phased manner over a period of six years. It was purposed to shift this area to Maize (four lakh hectare), Cotton (two lakh hectare), Sugarcane (1.5 lakh hectare), Fodder (1.5 lakh hectare), Agro Forestry (two lakh hectare), Pulses and Fruits & Vegetable (one lakh hectare).

The Chief Minister impressed upon Pawar to provide remunerative MSP coupled with assured marketing mechanism for the alternate crops especially Maize as the Punjab Government was seriously contemplating to enhance the present area under Maize cultivation from 1.5 to 5.5 lakh hectare. Mr Badal also asked the GoI to relook the policy of blending of petrol with ethanol by increasing it from 5% to 15% to promote conversion of Maize into ethanol. He also requested Mr Pawar to take up the issue with the Ministry of Food Processing to incentivize the setting up of Maize processing industry in the state to encourage its value addition and assured marketing support.

The Chief Minister also demanded that a Regional Centre of ICAR for research in pulses and Soyabeen should be established in the state to develop suitable varieties of these crops for cultivation in the state. Likewise Mr Badal also asked the centre to expeditiously set up a centre of excellence for Citrus at Abohar as the state government was planning to enhance the area under Citrus Orchards.

Reiterating that diversification to livestock sector was necessary to supplement the income of the farmers, the Chief Minister posed program to be funded by the Central government for the promotion of Dairy, piggery, Goatry and fisheries. He also urged the Union Minister to treat livestock sector at par with the Agriculture in terms of Income tax, interest rates, issue of Kisan credit cards etc. He also demanded to provide subsidized insurance cover to livestock irrespective of the size of the herd. The Chief Minister also urged Pawar to set up a Dairy research centre in Punjab on the pattern of already established such institute in Karnal to further boost the prospects of Dairy sector in the state.

Responding to the issues raised by Badal relating to diversification of Agriculture and development allied sector, the Union Minister said that he would convene a joint meeting of the senior officers of the Centre and state government at Ludhiana on November 20 to chalk out a comprehensive strategy to intensify efforts to boost crop diversification program along with major breakthrough in fishery, Dairy and Animal Husbandry. He also promised to look into the feasibility of setting up of Fishery research institute in Punjab to explore potential of fishery in the waterlogged areas of southern Punjab. 

Responding to the issues raised by the Chief Minister on the state diversification plan Pawar appreciated the concerted efforts of the state government to implement the ambitious diversification plan to shift an area of 12 lakh hectares from paddy to other crops. He assured all possible assistance and co-operation on behalf of the GoI to make this mission a huge success. Pawar also lauded the initiative of the state government to amend Agricultural Produce Market Committees (APMC) Act 1961 and to enact a new legislation on Contract Farming, which would be instrumental in providing forward linkages to the farmers to markets and industries. Pawar reiterated that the GoI would cover Amritsar for development of peri-urban cultivation of vegetables under National Vegetable Initiative for Urban Clusters (NVIUC) adding that the possibility of including SAS Nagar (Mohali) under the ambitious scheme would also be explored. The Union Agriculture Minister that he would soon take up the matter with his counterpart in Ministry of Textiles for opening more textile parks in Punjab to give an impetus to the processing of raw cotton in the state.

The Chief Minister was accompanied by Animal Husbandry Minister Sarwan Singh Phillaur, Chief Parliamentary Secretary Des Raj Dhuga, Chairman Punjab Farmer's Commission Dr GS Kalkat, Financial Commissioner Development GS Sandhu, Financial Commissioner Animal Husbandry Jagpal Singh Sandhu, Principal Secretary to the Chief Minister SK Sandhu and Advisor Agriculture and MD Milkfed Dr Balwinder Singh Sidhu.