New Delhi, July 2 (Inditop.com) The flow of credit to the farm sector increased to Rs.264,455 crore ($55 billion) last fiscal from Rs.254,657 crore in 2007-08, India’s Economic Survey for 2008-09 released Thursday said. But agriculture growth fell sharply to 1.6 percent from 4.9 percent the year before.
The food subsidy increased 40 percent last fiscal to Rs.43,668 crore (provisional) from Rs.31,260 crore in 2007-08, the survey said.
It said the government should promote smart cards among farmers so that they will benefit from various state-sponsored schemes.
It called for expediting schemes like the Kisan Credit Cards, revival of short-term rural cooperative credit structure, agriculture debt waiver and debt relief schemes.
Improving productivity and increasing net sown area for farming are vital tasks for the farm sector, the survey said.
It added that an area of 63.83 million hectares was sown under rabi crops in 2008-09 as against 61.97 million hectares the year before.
The area sown under kharif crops in 2008-09, however, shrank by 2.3 percent as compared to 2007-08.
It also called for developing rural infrastructure and provide connectivity which are essential for movement of agricultural produce, besides thrust on irrigation.
The production of foodgrains last fiscal stood at 229.85 million tonnes, the survey said.
