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PRE-BUDGET STATEMENTS by the Finance Minister, Mr Yashwant Sinha, had raised hopes that many policy initiatives to strengthen agriculture were to come forth. Yet Mr Sinha's Budget speech glossed over some of the most basic and urgent issues afflicting the sector. No doubt, a considerable portion of the Budget speech was devoted to agriculture. Deregulation (colourfully called Kisan ki azadi or Freedom to the Farmer) to encourage diversification and food processing, agricultural credit, crop insurance, irrigation, research and extension services, as also exports received his attention. These have undoubtedly been areas of concern. In particular, higher allocation for irrigation and setting up of a corporation for agricultural insurance are beneficial from a medium-to-long term perspective.

Butconspicuous by their absence were strong, growth-oriented policies, and steps to reduce the dangerously ballooning food subsidy burden. Falling public investment in agriculture is a serious impediment to growth; the Economic Survey had called for a review of policies that have led to a diversion of resources away from the creation of productive assets. Mr Sinha did not address this or the burgeoning foodgrain inventory and the wastefully heavy subsidies in wheat and rice procurement. He side-stepped the issue on the plea of waiting for the report of the high-powered committee evolving a long-term policy for foodgrains. The budgeted food subsidy for next year is as high as this year's Rs 21,000 crore. If that means the Government is reconciled to maintaining status quo, there may not be any initiatives to persuade foodgrain farmers to switch to oilseeds and pulses that are in deficit.

Raising production through productivity increases, improving quality, farmers' education and enabling growers to take informed decisions about cultivation and marketing are key components of agricultural strategy that did not get the deserved attention. Conceding that a new approach to research and extension services is necessary, the enhancement in the allocation for research is a paltry Rs 91 crore. Several Centrally-sponsored programmes are crying for larger funds and stricter implementation. Strangely, while seeking to give primacy to agriculture, not once was the National Agriculture Policy referred to. Is it that the excellent document of intent has been abandoned? Farmers need a helping hand now than ever before, with two years of falling commodity prices leading to a substantial drop in rural incomes. Globalisation of markets has laid bare the glaring leeway in productivity between them and their counterparts overseas. It has made the task of making their efficiency an imperative.

The Centre has its own limitations in pushing through reforms in agriculture; it needs the commitment and cooperation of State Governments. The Budget has been presented; but that need not prevent the Government from generating a national consensus on how to take agriculture forward.

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