As compared to this year the hike in agriculture was 51 per cent in the last budget. He said even though one could make political capital out of the stepped up allocation, the decline in allocation could worsen the employment situation, apart from creating agrarian tensions. The minister was speaking at an interface between Nabard and the ministry of agriculture.

Som Pal said while everyone from the RBI and Nabard, through the state governments to the planning commissionagree that the revival of the cooperative credit structure is important, the finance ministry is making the "technical point" that shareholders alone should undertake rehabilitation measures. "In other words, the finance ministry is saying that it is the farming community that should undertake this gigantic nation wide task," he added.

"I am sure you will agree with me that it has never been the central government's approach merely to treat cooperatives as a state subject and leave the destiny of the cooperative movement to the states. For over a century now, the conception, nurturing, promotion and development of the cooperative system has been actively and aggressively furthered by major initiatives taken by the central government," he said.

He said the National Cooperative Development Cooperation, Nabard, and the National Dairy Development Board (NDDB) to mention just a few, would hardly have been there but for the central government's avowed policy to support and assist the cooperativephilosophy.

"In any caseonce we have agreed that the revamping of the cooperative credit structure is a condition precedent to the overall effort aimed at doubling the food productionwe can hardly expect the states, with their meagre resources, to shoulder the onerous responsibility. What is more my ministry has prepared a package which does not merely stop with existing financial assistance.''

Som Pal said it is an innovative and imaginative proposal that commits the state governments and the cooperative banking system, to various measures of selective of sustained looking reforms. It is intended as a one-time operation and is selective in its approach, abandoning the `cooperative alone' dogma. He appealed to the ministry to help kick start the structure which would then play a positive and productive role in increasing agricultural production and enhancing agricultural productivity. Som Pal said the projected agricultural growth rate of 4.3 per cent during the Ninth Plan, requires increased investmentsupport.