After the inauguration of 1459th branch of public sector Vijaya Bank at Tayamangalam near Sivaganga on 6th Oct 2013, Union Finance Minister P Chidambaram justifies the high prices of rice. He said that they have to pay more to the farmers to procure the rice so automatically the rice prices would go up.
“Agriculture is the poorvikam (original vocation) of the country and if the farm sector did not prosper…then the country will not prosper,” he said.
It’s not a rule that farmers have to be financially poor so if the government has paying them high prices than it is obvious that there will be increase in rice prices.
Emphasizing the country’s requirement for the food grains there is a need to grow the agricultural sector had seen excessive growth recently and production of wheat and rice had doubled.
He also asked the farmers to take advantage of the farm loans which are available for them at low rate of interest.
The UPA government had increased the loans given to farmers from Rs 85,000 crore in 2004 to Rs 7.5 lakh crore in this fiscal to improve the farm sector. The interest on farm loan was just seven per cent and if the principal and interest were paid properly then three per cent rebate was also given, he said.