08/08/2011 (fnbnews.com) - The revised Budget for Tamil Nadu for 2011-2012 was presented to the Legislative Assembly by Thiru O Panneerselvam, minister of finance, Government of Tamil Nadu, last week.

The Budget offers several incentives to fish processors, agri businesses, dairy industry, farmers and food processing units.

As part of the proposal, the government will encourage private companies to put up agro processing industries with farmers' participation in a cluster approach with the farmers holding at least 25 per cent of the share capital in the processing company which will be contributed by the state government.

According to Panneerselvam, establishment of such processing industries in rural areas will sustain the cultivated area besides protecting the farmers from distress sale of perishable commodities.

The Budget also proposes a pilot scheme of complete market modernisation including electronically linking the markets with commodity exchanges, which is planned to be taken up during the current year in the Villupuram regulated market.

Based on the experience, the remaining regulated markets will be modernised in a phased manner. The Budget proposal states that efforts will be taken for augmenting godown and warehousing facilities at the primary agricultural co-operative credit societies to extend more pledge loan facilities and also to increase the storage facilities in agricultural co-operative market premises, regulated market premises and in the Tamil Nadu Civil Supplies Corporation to store foodgrains. For this purpose, Rs 237 crore will be set apart in 2011-2012 with National Bank for Agriculture and Rural Development (NABARD) assistance under the Rural Infrastructure Development Fund (RIDF).

Public Distribution System (PDS) has remained a constant problem in the country. For streamlining the PDS, the government has extended the special PDS programme to supply tur dal, black gram, palm oil, atta and masala packets at subsidised rates up to December this year.

The Budget also appears optimistic in dealing with the price fluctuations linked to agri-commodities. For this, a Price Stabilisation Fund is being constituted with an initial corpus of Rs 50 crore for procurement of essential commodities facing erratic changes in price and their sale to consumers at cost price through co-operatives.

"We will constantly monitor the price trends and whenever necessary, take up with the Forward Market Commission through the Government of India for delisting the commodities which are exhibiting volatile price movements, " said the minister.

For the dairy sector, the Budget proposes to achieve the objective of increased production of milk by creating a second white revolution. The state will launch a scheme to distribute 60,000 milch animals in the next five years, free of cost, to poor rural families. "During 2011-2012 we intend to distribute 12,000 cross breed jersey milch cows to such poor families in backward villages located in non-traditional areas. A sum of Rs 56 crore is allocated in the Revised Budget Estimates for this scheme," said the minister.

For the fisheries sector, the government will launch a scheme to provide 25 per cent subsidy up to Rs 5 lakh to fishermen to procure mechanised boats or deep sea tuna liners. This year Rs 25 crore will be set apart for this purpose to add 500 new mechanised boats or deep sea tuna liners. To overcome the problem of dwindling catch in shallow waters, a pilot project of establishing a mid sea Fish Processing Unit and stationing a 'Carrier Mother Vessel' at mid sea, to act as a source of essential inputs for the 'baby vessels' involved in commercial fishing in the deep sea will be taken up under Public-Private-Partnership during 2011-2012.

Along the coast, in 13 selected fishing towns, fish processing parks will be developed in a phased manner under Public-Private-Partnership (PPP) with the financial support of the ministry of food processing, Government of India, and the National Fisheries Development Board. During 2011-2012, two such modern fish processing and packing houses will be developed with cold storage facilities at Chennai and Nagapattinam as pilot projects.

Further, the government will give a special allowance of Rs 4,000 per family to the non-fishing period, fulfilling one more of its commitment. This will cost the state an additional amount of Rs 72 crore. This will be in addition to the amount of Rs 1,800 per person disbursed to fisherfolk under the National Fishermen Savings-cum-Relief Scheme.