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Economic Times

  • Farm loan waiver to help small tea growers

    KOLKATA: The finance minister's farm loan waiver will help 1.10 lakh small tea growers become more competitive. Small growers contribute 25% to the national tea production, which stood at 940 million kg in 2007. The Budget has also abolished cash transaction tax, which was a burden to the tea industry in particular. "Nearly 80% tea estate workers do not have bank accounts and have to be paid in cash. For the tea industry, which is yet to come out of a crisis, this tax was an added burden,' Ambootia group chairman Sanjay Bansal said. There are 3 million direct workers in the country's tea estates. The estates also provide indirect employment to some 1.5 million people. The wage bill of the industry is around Rs 80 crore. The payment to workers are made on weekly, fortnightly or monthly basis.

  • New World Bank catastrophe loan

    WORLD Bank on Tuesday launched a new catastrophe loan facility and revised an existing contingency credit line designed to help increase its business with middle-income countries. The World Bank board on Tuesday approved the Catastrophe Risk Deferred Drawdown Option that will give middle-income countries access to emergency funds in the event of a natural disaster such as a hurricane or earthquake. Countries stricken by disaster will be able to access funding of up to $500 million once a state of emergency is declared. Countries may qualify for the loan facility if they have a hazard risk management programme already in place that is monitored by the World Bank. World Bank president Robert Zoellick said the facility was an example of how the institution could be useful to middle-income countries, a diverse group that includes fast-growing economic powerhouses like China. In September, Mr Zoellick cut the price the World bank charged on its loans and simplified a complex set of fees and waivers for emerging economies, which were increasingly tapping global capital markets for funding. "These financial product enhancements reflect the World Bank Group's commitment to using creative ways to expand resources for our country partners,' Mr Zoellick said. "As our client relationships with middle-income countries become more sophisticated, the World Bank is responding with development solutions that share knowledge, build markets and institutions, and provide capital,' he added. The World Bank board separately also approved changes to its existing Deferred Drawdown Option (DDO), a pre-approved line of credit for countries which do not immediately need the funding but have access to it in the future in case of an unforeseen event. Only two countries

  • Physical road connectivity between urban consumption markets to farmlands

    Storage infrastructure and setting up processing facilities for our farm products are major issues and need immediate attention of policymakers to accelerate agricultural growth, says former power minister and MP, Suresh P Prabhu LACK of adequate infrastructure in the hinterland and poor connectivity are major reasons behind slow agricultural growth. Better communication infrastructure is urgently required to maximise benefits of scientific innovation in enhancing farm produce. Since there is a limit to expanding the farm land, I strongly believe that there is no alternative but to put together a credible agriculture infrastructure to meet the rising demand in India for foodgrains and other agri-products and also make decisive inroads into the external markets. Access to markets Beginning with physical road connectivity between the urban consumption markets to farmlands, setting up storage facilities to processing facilities for our farm products is one big issue that needs to be tackled by the policymakers in the country. Very often, I have witnessed heated debates in the Parliament on farmers' issues. Inadequate or lack of farm infrastructure is not limited to just India. It is a phenomenon in the entire South Asian region. Massive investments in building this infrastructure in agriculture and related farm-based industries are the only answer as we make efforts to maximise our productivity from the farmlands. Scientific research and technological innovations would make our investments more productive. Billions of dollars need to be set aside for laying rural roads, setting up cold storage, post-harvest processing units, quality and affordable inputs like seeds, fertilisers and water apart from undertaking massive diversification into horticulture, floriculture and allied areas like livestock, poultry development. Insulating Indian agriculture from vagaries of weather is another big challenge as the infrastructure for water storage, smooth flow up to farm-gate apart from ensuring judicious use needs emphatic focus. Only then the double-digit GDP growth envisaged during next five years would be possible. Common concern Farm infrastructure development assumes a lot of significance as the South Asian region led by India is home to 35% of the world's hungry and 40% of the world's poor. About 70% of these people belong to India. The country's borders with other South Asian countries are often porous for flow of agricultural inputs, products and human resources, but its formal trade, particularly its import with its neighbours, is not as intense. Authentic estimates corroborated by FAO figures project that the country's food production will exceed human food demand and sizeable surpluses of cereals, fruits and vegetables, potatoes and milk will be available, which will help strengthen the proposed South Asian Food Bank once the infrastructure bottlenecks are sorted out. As stated earlier, agricultural growth in recent years has thrown new sectors and regions into prominence. Livestock, fisheries, horticulture, specialty enterprises (spices, medicinal, aromatic, organic) and value-added products illustrate this trend. Market-driven diversification, emphasising the role of the private sector, in a global perspective, has become the new paradigm driving future agricultural growth. Alternative instruments and approaches are evolving to transform agriculture and a very important part of this

  • BJP wants 10-year plan for farmers

    THE BJP has demanded that the Centre demonstrate that it was serious about ameliorating the condition of farmers by preparing a ten-year action plan for the revival of the sector.

  • Patil SEZ no to agricultural land

    UNION home minister Shivraj Patil is not in favour of allowing the use of agricultural land for setting up special economic zones (SEZs).

  • The loan waiver: A primer

    It's time for the government to reconsider its anti-poverty programmes.

  • PFC, RITES ink pact on coal import

    POWER sector financing company Power Finance Corporation (PFC) and Railways technical advisory wing RITES, on Thursday, signed an MoU to jointly import coal from countries, including Africa, to ease s

  • High Energy (Editorial)

    THAT'S NOT COUNTING the energy efficiency technology market aimed at reducing power consumption.

  • Growth comes a cropper sans farms, farmers

    I SPENT the first 12 years of my life in a poor, dusty and backward village of undivided Punjab. I still have vivid recollection of life in that village.

  • Govt ready to sacrifice growth to tame prices: FM

    AN INCREASE in the cost of funds for borrowers appears imminent with finance minister P Chidambaram announcing the government's willingness to sacrifice growth for lower inflation.

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