Both, domestic and global demand conditions in the economy as a whole were subdued in 2012–13 as the overall GDP growth is now estimated to be 5 per cent for the year well below the performance since 2003–04. Agriculture and allied sectors GDP registered growth of 1.8 per cent in 2012–13, well below then growth rate of 2.8 per cent seen in the previous year. The erratic monsoon rainfall in 2012 has affected the overall agricultural production in 2012–13. The year, however, also saw persistence of food inflation with the cereal prices registering significant increase during the year. The year also saw squeeze in government spending needed to bring down fiscal deficit.

March 2013

Under these conditions of subdued economic growth and significant food inflation, policy efforts were needed to revive growth momentum of agriculture. The central budget for 2013–14 has reflects continued support for the flagship schemes such as RKVY, National Food Security Mission and National Horticulture Mission besides the launching of National Livestock Mission. The general thrust of the budgetary provisions is continued support for the major programmes for the agriculture sector. The recent policy measures in the pulses and edible oil sectors encourage exports of packaged/ processed commodities which may also help in the development of the sector allowing the industry to grow in scale and operations. In the case of sugar, moves to decontrol the sector from pricing and selling restrictions may see more investments to expand operations.:

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