MUMBAI, India (Reuters) – The Indian government has delivered a budget that boosts farm spending with the goal of lifting farm sector growth to four percent in the medium term.
India is the largest buyer of Canadian pulse crops.
The budget introduced a clutch of measures aimed at spurring the rural economy, including withdrawal of a service tax on testing and certification of seeds and on transportation of cereals and lentils by road. It also raised available farm credit and has a plan to reduce food waste.
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The 1985 farm bill started a series of protectionist measures, such as domestic marketing allotments, import quotas and hightariffs on imports exceeding the quotas.
Food prices have risen 17.58 percent from last year, and the government has been under pressure to make more food available and support the rural economy.
India’s problems were aggravated by the worst summer monsoon in 37 years.
One initiative is a program similar to the 1960s green revolution to boost production, particularly in eastern states.
As part of the program, the government has proposed spending about $70 million “to organize 60,000 pulses and oilseed villages” in rain-fed areas during 2010-11 and provide an integrated plan of water harvesting, watershed management and soil health to enhance productivity.
