New Delhi: Giving the long overdue pride of place to agriculture, Finance Minister P Chidambaram today (July 8,2004) announced a bonanza for the farm sector in the Union Budget for 2004-05 that included cheaper credit, enhanced farm and cattle insurance and tax concessions for allied activities like horticulture and dairying.

The initiatives are in line with UPA (United Progressive Alliance) Government's Common Minimum Programme (CMP), which Chidambaram described as the "guiding light". Extension of Antyodaya Anna Yojana (AAY) to another 50 lakh families, new food-for-work programme scheme in 150 backward districts, increased thrust on agriculture credit, excise duty exemption on dairy industry, promoting agri-businesses, new farm insurance and irrigation schemes are only some of the many agri and food initiatives in the Budget.

Of the 12 thrust areas, Chidambaram listed out in the beginning of his marathon two-hour speech, four related to agriculture. These included doubling agricultural credit, accelerating the completion of irrigation projects and investing in rural infrastructure. Further, he promised improving agricultural product markets and promoting agri-business and providing farm insurance and livestock insurance.