Agriculture has revived, says President

New Delhi, Feb 12 (PTI) The Indian government's policies have helped revive the agricultural economy and the farm sector grew by 4.5 per cent due to various steps like higher support prices for crops and more credit to farmers, President President Pratibha Patil said Thursday.

In her customary address to the joint sitting of the
Parliament, Patil said: "Through carefully crafted policies in
the agriculture sector, we have been able to revive our
agricultural economy from the trap of low investment, low
productivity and rural indebtedness".

Patil said: "As a result of concerted efforts, (in
2007-08) the agriculture sector (grew) by 4.5 percent.
Production has increased in almost all crops between 2004 and
2008."

However, according to the advance estimates of GDP by
the Central Statistical Organisation (CSO), farm sector growth
is likely to slow down to 2.6 per cent this year (2008-09).

The President said, through farmer-first policy, the
country has been able to achieve record foodgrain production
of 230.67 million tonnes in 2007-08 and ensure food security.

The President said remunerative prices were given to
farmers through "unprecedented" enhancements in the minimum
support price, which was raised from Rs 630 in 2004 to Rs
1,080 a quintal in 2009 for wheat and from Rs 550 a quintal in
2004 to Rs 900 including bonus in 2008 for paddy.

Highlighting the government's popular debt-waiver scheme
for farmers announced in last year's budget, Patil said: "My
government waived around Rs 65,000 crore of outstanding credit
owed by 3.7 crore farmers who had fallen in bad times to
revive their credit cycle."

The Centre has increased farm credit by three-fold from
Rs 87,000 crore in 2003-04 to Rs 2,43,000 crore in 2007-08.

Patil said investment in agriculture has increased from
10.2 per cent to 12.5 per cent the gross domestic product
(GDP) during the last five years.

The President also said the government ensured that
farmers' interests are protected at the WTO negotiations,
which are going on.

Patil mentioned that the government has not increased
the prices of fertilisers in last five years even though there
was an unprecedented increase in rates of crude oil and
chemicals in international market. PTI PDM
PMR