New Corporation for Agriculture Insurance to be promoted by state-run insurance companies
Increases the allocation for the Accelerated Irrigation Benefit Programme (AIBP) from Rs 2000 cr this year to Rs 2800 cr in 2002-03.
Union Finance Minister Yashwant Sinha, in the Union Budget for
2002-03 presented to Parliament on Thursday, said the National Agriculture
Insurance Scheme is already in operation. To subserve the needs of
farmers better and to move towards a sustainable actuarial regime he
proposed to set up a new Corporation for Agriculture Insurance to be
promoted by the existing public sector general insurance companies.
Sinha proposed to increase the allocation for the Accelerated Irrigation
Benefit Programme (AIBP) from Rs 2000 crore this year to Rs 2800
crore in 2002-03. This will assist the States to accelerate the completion
of unfinished medium and major irrigation projects, and also to undertake
reforms by revising user charges and setting up of water users
associations.
The accelerated diversification and modernization of agriculture will
require a new approach to research and extension services. Sinha
proposed to enhance the allocation for 2002-03 for agriculture research
to Rs 775 crore from Rs 684 crore in the current year. A full review of the
governance of agricultural research is also proposed so that the system
can serve the new needs creatively.
Linkages between research and extension will be strengthened to
improve quality and effectiveness of research and extension systems.
The extension system will be revitalised and broad-based through Krishi
Vigyan Kendras (KVKs), NGOs, farmers organisations, cooperatives, the
corporate sector and agri-business clinics.
KVKs will be designated as nodal agencies for quality certification including organic products,
bio-fertilizers, and bio-pesticides. The supply of inputs, agro-processing
and trade through such cooperatives/companies will be encouraged
through the availability of credit with the help of NABARD. The
Companies (Second Amendment) Bill 2001, already introduced in
Parliament will enable the conversion of existing producer cooperative
businesses into companies.
Promotion of agricultural exports is important for creating conditions for
providing remunerative prices to farm produce. For this purpose Agri
Export zones are being promoted in different States and 15 such zones
have been approved so far. APEDA will catalyse development of
infrastructure and flow of credit to the units in these Agri Export zones.
The Pradhan Mantri Gram Sadak Yojana (PMGSY) initiated to provide
connectivity through all weather roads to all our villages is making
considerable headway. A further allocation of Rs 2,500 crore for the year
2002-03 is being made over and above Rs 5,000 crore provided so far.
Depending on the accelerated implementation of these works I intend to
find additional resources including those from multilateral sources in the
course of the year.
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