New Delhi: A package for agriculture including measures to double credit to the farm sector in three years, is expected in the Budget scheduled on July eight.

Finance Ministry officials had a series of meetings today (Jun 17, 2004) with Reserve Bank Governor Y V Reddy, Nabard chairperson Ranjana Kumar, Indian Banks Association chief V Leeladhar to work out the modalities.

Official sources said the meeting mainly pertained to evolve methods to boost rural credit among other things.

"Since the new UPA (United Progressive Alliance) Government has promised a slew of measures for the farmers in its Common Minimum Programme, certain steps are expected in the Budget," official sources said.

Priority sector credit, a bulk of which is to the farm sector, was up by 25 per cent at about Rs 2,10,000 crore last fiscal, as per RBI data.

Nabard chief also met Prime Minister Manmohan Singh to appraise him about the progress made by the nodal agency for agriculture credit and suggest measures to augment it further.

The meeting of RBI, Nabard and IBA officials comes a day after Finance Minister P Chidambaram called on Agriculture Minister Sharad Pawar.

Pawar had pitched for enhancing agricultural credit and promoting farm research in the upcoming Budget despite fiscal constraints.

RBI, Nabard and IBA are working closely with Agriculture and Finance ministries to explore ways for expanding the coverage of rural credit through various channels.

The Budget may also announce major investment plan for agriculture, rural infrastructure and technology induction in the otherwise traditional sector.

A package for agriculture including measures to double credit to the farm sector in three years, is expected in the Budget scheduled on July eight.

The Budget is also likely to announce comprehensive insurance schemes for crop and livestock and consolidation of existing agri schemes.

Strengthening of the Public Distribution System (PDS), lifting of restrictions on agri-marketing and freeing agricultural research from bureaucratic controls are some of the areas that government would stress on in the Budget.