Budget highlights: Agriculture and related proposals

The following are the main proposals in the Union Budget for 2012-13 that relate to Agriculture:

 Plan Outlay for Department of Agriculture and Co-operation increased by 18 percent.

 Outlay for Rashtriya Krishi Vikas Yojana (RKVY) increased to `9,217 crore in 2012-13.

 Initiative of Bringing Green Revolution to Eastern India (BGREI) – Allocation for the scheme increased to `1,000 crore in 2012-13 from `400 crore in 2011-12.

 `300 crore to Vidarbha Intensified Irrigation Development Programme under RKVY.

 `2,242 crore project launched with World Bank assistance to improve productivity in the dairy sector. `500 crore provided to broaden scope of production of fish to coastal aquaculture.

 All other schemes to be merged into the following six schemes :

     National Food Security Mission
     National Mission on Sustainable Agriculture including Micro Irrigation
     National Mission on Oilseeds and Oil Palm
     National Mission on Agricultural Extension and Technology
     National Horticultural Mission
     National Mission for Protein Supplement

Agriculture Credit

 Short term RRB credit refinance fund being set up to enhance the capacity of RRBs to disburse short term crop loans to small and marginal farmers.

 Interest subvention scheme for providing short term crop loans to farmers at 7 per cent interest per annum to be continued in 2012-13. Additional subvention of 3 per cent available for prompt paying farmers.

 Target for agricultural credit raised by `1,00,000 crore to `5,75,000 crore in 2012-13.

 Kisan Credit Card (KCC) Scheme to be modified to make KCC a smart card which could be used at ATMs.

Agricultural Research

 A sum of `200 crore set aside for incentivising research with rewards.


 Structural changes in Accelerated Irrigation Benefit Programme (AIBP) being made to maximise flow of benefit from investments in irrigation projects.

 Allocation for AIBP in 2012-13 stepped up by 13 per cent to `14,242 crore.

 Irrigation and Water Resource Finance Company being operationalised to mobilise large resources to fund irrigation projects.

 A flood management project approved by Ganga Flood Control Commission at a cost of `439 crore for Kandi sub-division of Murshidabad District.

National Mission on Food Processing

 A new centrally sponsored scheme titled “National Mission on Food Processing” to be started in 2012-13 in co-operation with State Governments.

 Steps taken to create additional food grain storage capacity in the country.