The Hindu : Karnataka / Bangalore News : Special package: farmers yet to fully benefit

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Wednesday, Dec 10, 2008
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Karnataka

Karnataka - Bangalore

Special package: farmers yet to fully benefit

Nagesh Prabhu

The Rs. 2,689-cr. package was announced two years ago

Package meant for Belgaum, Hassan, Chikmagalur, Kodagu, Shimoga and Chitradurga districts
There is a lack of flexibility in the package; different districts have different needs: officials

BANGALORE: Despite claiming to be farmer friendly, the State Government has failed to meet its commitment in implementing watershed and agricultural development programmes as part of the Prime Minister’s package for farmers, which is largely funded by the Union Government.

Of the Rs. 360 crore earmarked for watershed development, rainwater harvesting and construction of check-dams in the State, only Rs. 90 lakh has been utilised in the past two years. In that period the Centre released Rs. 5.67 crore of its share of Rs. 180 crore.

The Centre announced the Rs. 2,689-crore package in September 2006, with funding to be spread over three years, for six districts — Belgaum, Hassan, Chikmagalur, Kodagu, Shimoga and Chitradurga — which were declared as “districts in agricultural distress” because of the large number of suicides by farmers.

It is another matter that suicides have continued despite the special package. Following representations received from the governments and other implementing agencies in Karnataka, Andhra Pradesh, Karnataka, Kerala and Maharashtra, the Centre extended the scheme by two more years (up to September 30, 2011) and made some modifications for better implementation.

Sources in the Agriculture Department here maintain that the State has not been able to utilise the funds under the special package because of the cumbersome procedure involved in obtaining clearances from the Centre. Under the agricultural development component, which includes supply of seeds, micro-irrigation and extension services, the Government has spent only Rs. 44.10 crore although the Centre released Rs. 61.59 crore of the Rs. 245-crore subsidy for this segment.

Out of Rs. 178 crore earmarked for seed replacement (seed supply), the State has utilised only Rs. 27.87 crore. The ban on the distribution of hybrid seeds developed by private agencies is the reason for the low utilisation of funds, according to sources. Also, only farmers cultivating one hectare of land are eligible for subsidised seeds.

Out of the subsidy of Rs. 106.15 crore earmarked for horticulture development, Rs. 80.41 crore has been utilised (75 per cent). Subsidiary income-generating activities such as animal husbandry and fisheries have received only Rs. 17 crore of the Rs. 98.87-crore subside earmarked.

There is a lack of flexibility in the package. It needs to be implemented in accordance with the needs of farmers in different districts, says an official of the Agriculture Department.

Changes suggested

Based on the feedback received from the Union ministries concerned, State governments and the National Bank for Agriculture and Rural Development (NABARD), the Centre has suggested some changes to speed up the existing interventions.

The Centre has given in-principle approval for need-based additional funds for implementation of the package. The area limit under the Seed Replacement Programme has been doubled to two hectares.

Another new initiative is the ‘cafeteria approach’ for participatory watershed development programmes where State governments, with permission from the Ministry of Agriculture, will have the flexibility to adopt either the models circulated by NABARD or the Sujala model of watershed development being implemented in Karnataka with World Bank assistance.

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