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Jain Irrigation -Subsidy support for micro irrigation raised further
FY12 subsidy raised further; new schemes under RKVY likely positive: The
Finance Minister’s Union Budget provides for an increase in the central
government’s subsidy support for the National Mission on Micro Irrigation
(NMMI) to `11.3bn for FY11-12 (vs an original allocation of `10.0bn for FY10-11
that is now revised downward to `9.7bn). We note that central government also
subsidises micro irrigation (MI) via various other schemes, budgetary
allocations for which are also raised (Exhibit 1). In particular, a number of new
schemes have been created under the Rashtriya Krishi Vikas Yojana (RKVY) that
could meaningfully expand the addressable opportunity (Exhibit 2) and provide
for additional subsidy support for MI. The downward revision in FY10-11 NMMI
subsidy estimate to `9.7bn could be driven by slower than expected farmer
demand due to prolonged and excessive rainfall in late-CY10.
Visit http://indiaer.blogspot.com/ for complete details �� ��
Jain Irrigation -Subsidy support for micro irrigation raised further
FY12 subsidy raised further; new schemes under RKVY likely positive: The
Finance Minister’s Union Budget provides for an increase in the central
government’s subsidy support for the National Mission on Micro Irrigation
(NMMI) to `11.3bn for FY11-12 (vs an original allocation of `10.0bn for FY10-11
that is now revised downward to `9.7bn). We note that central government also
subsidises micro irrigation (MI) via various other schemes, budgetary
allocations for which are also raised (Exhibit 1). In particular, a number of new
schemes have been created under the Rashtriya Krishi Vikas Yojana (RKVY) that
could meaningfully expand the addressable opportunity (Exhibit 2) and provide
for additional subsidy support for MI. The downward revision in FY10-11 NMMI
subsidy estimate to `9.7bn could be driven by slower than expected farmer
demand due to prolonged and excessive rainfall in late-CY10.