The allocation comes under National Food Security Mission (NFSM) of the central government. The mission had the aim of increasing the production of rice, wheat and pulses by 10 million tons, 8 million tons and by 2 million tons respectively by the end of the Eleventh Plan (2011-12).
Apart from increasing the production, the mission also focuses on methods to improve soil health, mechanisation of the agriculture land, efficient use of water and drip irrigation.
The money allotted will be distributed among the states and will be utilized mainly for distribution of certified hybrid seeds, incentives for micro nutrients, purchasing of equipment and farm machinery. The state district with highest increase in the production will be allotted additional money later on.
The allocation of money will help thousands of poor farmers to increase their production. For the betterment of the farmers, the government has raised the minimum support price of domestic wheat from Rs 640 per quintal to Rs 1,000 per quintal.
The production of wheat is likely to increase this year, thanks to the favourable rains. The government is also planning to lift the ban from the export of wheat in case the production increases this year. The government had banned the export of wheat two years ago due to the lack of production. The export to other countries will ensure increase in cash inflow in the country.
