AGRICULTURE AND

RURAL DEVELOPMENT
Union Budget 2011-12
Introduction
Agriculture’s Importance.
Backbone of the Economy.
In 2010-11 Agriculture has grown up to 5.4%.
Most parts of the country still remain rural and
their development poses big challenge to the
decision makers of the country.
Dynamism in the rural economy.
Increase in the flow of goods to the rural areas.
Growth in agricultural sector is at 5.4%
Proper and efficient supply of resources to the
rural areas.
The main Challenge of the coming financial year is
to increase the supply of food to match the
growing demand and overcome food inflation that
is growing at a very high speed
Vegetable Clusters
Vegetable Clusters are a very important tool in
removing the functions of the middle men to
reduce food inflation.
Under this system farmers can directly market
their produce without depending on middlemen.
In this budget about Rs. 300 crores has been
assigned for vegetable clusters.
This will benefit the farmers as well as the
consumers.
Benefits:
Section Effect
Farmers Will get additional 13% to
14% for their produce
Consumers Will have to pay 5% to 6%
less for their vegetables
Nutri-cereals
Nutri-cereals are a combination of various millets
which are highly nutritious and have several
medicinal properties.
Nutri-cereals include: Bajra. Jowar, Ragi, etc.
Rs. 300 Crore has been assigned for promoting the
increase in production of nutri-cereals.
Benefits:
This initiative would provide market linked
production support to 10 lakh millet farmers in the
arid and semi-arid regions of the country.
This initiative also focuses on the health aspect of the
nation.
It aims at increasing the consumption of Nutri-cereals
to increase the nutritional level of the population.
Storage Capacity And Cold Chains
Augmentation of storage capacity through private
entrepreneurs and warehousing corporations has
been fast tracked.
Capital investment in creation of modern storage
capacity will be eligible for viability gap funding of
the Finance Ministry.
Benefits:
This will help in long term preservation of the
produce.
It will reduce the wastage of the farm produce.
This will help in coping with the problem of food
crisis.
This will indirectly promote agriculture.