Cabinet set to review pricing policy for farm sector

08 August 2007

Mumbai: The union cabinet will soon start deliberations on the recommendations of the National Commission on Farmers, which has favoured government procurement of foodgrains at market rates rather than at minimum support prices.

The commission, headed by eminent agriculture scientist M S Swaminathan, in its final report had suggested a national policy on farmers instead of an agriculture policy. It also favoured procuring food grains from farmers at market rates rather than at support prices.

The cabinet will also take up key proposals such as central assistance to states, food security and the setting up of a national commission on farmers.

The planning commission and the agriculture ministry are in the process of finalising a detailed programme envisaging central assistance of Rs25,000 crore to states for farm-based support schemes over the next four years.

Prime minister Manmohan Singh had announced plans to fornulate a Rs25,000 crore plan to rejuvenate the farm sector at the National Development Council meeting in May this year.

Reports quoting agriculture ministry sources said that the cabinet is likely to take up central assistance to states first.