Taking strong objection to the cut in input subsidies for agriculture in the Economic Outlook for 2012-13, YSR Congress Party has demanded that the Centre should not accept the recommendations of the Prime Minister’s Economic Advisory Council (PMEAC) headed by Dr. C. Rangarajan, as the farming sector would take a severe beating.
“The PMEAC has recommended that input subsidies to agriculture including free power to farmers, should be done away with. We oppose this as late YSR has proved that growth rate can be improved by giving farm subsidies,” Party Advisor D. A. Somayajulu said on Saturday.
At a press conference here, he said with all the subsidies in place, including free power, the growth rate recorded during YSR’s term was 6.8 per cent and agriculture production in the arid Telangana region itself increased from 8 million tonnes in 2003-04 to 24 million tonnes in the next five years. “This clearly indicates that input subsidies will increase production and productivity and we demand that the recommendations on axing input subsidies to agriculture should be rejected,” he said.
Though the PMEAC tried to paint a rosy picture of the economy, facts speak otherwise with the deficits going up over the past five years , Mr. Somayajulu said. “We demand that the recommendation to slash input subsidy be withdrawn as it spells the bankruptcy of ideology. On the contrary, economic activity with improve with input subsidies like free power, supply of quality seeds and fertilizers at supportive prices,” he said.