The Hindu Business Line : Farm support price to continue

THE Union Finance Minister, Mr Jaswant Singh, has ruled out dispensing with the minimum support price (MSP) scheme for agricultural crops, even as he said that measures would be taken to reduce subsidies.

Speaking to presspersons soon after the Prime Ministers' Economic Advisory Council meeting on Saturday, Mr Singh stated that Government would work in tandem with the State governments to target subsidies.

Indicating that softer interest regime would continue, Mr. Singh stated that all measures would be taken to boost savings. He, however, noted that a reduction in interest rates need not necessarily lead to lower savings.

The Finance Minister stated that measures would also be taken to "strengthen the equity cult''.

Earlier, describing the council meeting with economists as instructive, he stated that a lot of good ideas were thrown up to improve the state of the economy and push reforms.

Though the meeting was essentially convened to discuss the electricity Bill and the petroleum regulatory board, other issues relating to NPAs of banks, fiscal responsibility , minimum support price mechanism and rural credit were also discussed.

As regards the eight-point agenda set by the Prime Minister, Mr. Singh said that it was the responsibility of the Government to implement these policies.

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