Central Government Budget (2004-05) initiatives in Horticulture, Agriculture and Food Processing

• Central Government Budget 2004-05 has stressed on
  encouraging farmers to diversify into areas such as horticulture, floriculture and oilseeds.
   
• In this regard, the Central Government has proposed to launch a National Horticulture Mission. The goal is to double horticulture production from the current level of 150 million tones to 300 million tones by 2011-12. The Union Finance Minister Mr. P.Chidambaram has invited states to join hands with the government in launching this mission.
   
• According to the Union Finance Minister, the Anand model has been a great success in milk and milk products. One of the steps that states will be encouraged to undertake is to emulate the Anand model and establish a State Level Cooperative Society for promoting horticulture.
   
• Oilseeds is another critical area where the Government is proposing to facilitate farmers to diversify by promoting superior seed-technology and through an appropriate policy of price support.
   
• Overall the Budget 2004-05 has proposed that India should strive to become a single market for all products, particularly agricultural produce and hence has identified agriculture as one of the ‘Thrust Areas’.
   
• The Union Budget 2004-05 has reduced excise duty from 16 percent to 8 percent on preparation of meat, poultry and fish and excise duty from 32 percent to 16 percent on food grade hexane (used in the edible oil industry).
   
• New Agro-processing industries set up to process, preserve and package fruits and vegetables have been allowed a deduction of 100 percent of profits for the first 5 years and 25 percent of profits for the next 5 years.