Agriculturists on Tuesday asked Finance Minister P Chidambaram to consider a Rs 500 crore (Rs 5 billion) revolving fund in the forthcoming Budget to enable Food Corporation of India to expedite payment for procurement of pulses and oilseeds besides seeking implementation of the farm package announced by the government in 2003.

At the first pre-Budget meeting held by Chidambaram, the farm sector representatives also asked him to take steps for capital formation in the sector besides strengthening the ailing cooperatives.

"We have sought a Rs 500 crore revolving fund to be set up by FCI to expedite payment for purchase of oilseeds and pulses from the growers in order to encourage cultivation of crops," NAFED chairman Ajit Kumar Singh told reporters after the two-hour meeting.

Singh said since the government is encouraging diversification, it would be desirable to bring in more farmers into the oilseeds and pulses sectors for which there is huge demand in the country.

Setting up of such a facility would encourage farmers since the fund would enable speedy financial disbursement for purchase of oilseeds and pulses.