April 11, 2002

'27'

COOPERATIVES BEING STRENGTHEN TO FACE COMPETITION

    Since 50% of the rural credit is routed through cooperative institutions and 25% of the fertilizer production is by the cooperative sector, government is going to strengthen the cooperative structure which will allow them to compete with the private sector. This was stated by Union Minister of Agriculture, Shri Ajit Singh during his meeting with the Kenyan delegation led by Dr. Adhu Awiti, Minister of Planning which called on him here today. The Minister told the the delegation that a number of legislative measures are on cards to make cooperatives more effective and cut down government control in these organisations. Shri Ajit Singh said that since 80% of the farmers are small and marginal farmers the country is aiming at helping these two-acre farmers. He told the delegation that India has become a Food-surplus state from a Food-deficient one. The stock of foodgrain is 61 million and the Government is going to procure 120 lakh tonnes of wheat this year, the Minister said.

    The visitng Minister said that due to liberalisation and major policy shifts in the economic policies of his country, there has been adverse impact on agriculture. He wanted to know how India was tackling the problem of this nature. He also wanted to know how India marketed its agri-products. Stating that the cost of production of agricultural products is quite high in his country he wanted to know how India is tackling this problem. He said that cooperative structure has collapsed in the wake of liberalisation in his country and the small farmer has been left to fend for himself.