Kolkata, Dec 24 (IANS) Finance Minister Pranab Mukherjee Thursday said agricultural growth for the third quarter (October-December) of the current fiscal (2009-10) could be negative due to deficit in the monsoon and floods in some parts of the country.
“Agricultural growth for the current fiscal may be negative due to deficit in monsoon and flood in some parts of the country but it will be compensated by the services, manufacturing and the industrial sector contributions,” he said, addressing the inauguration ceremony of the 23rd Industrial India Trade Fair here.

“Despite low agricultural contribution I expect reasonable growth in the third quarter,” Mukherjee said.

The economy grew at 7.9 percent in the second quarter. Agricultural growth in the second quarter (July-September) was 0.91 percent, he said.

He further said: “We need to maintain a food grain stock of 7-8 million tonne if the country has to achieve 8-9 percent growth rate.”

In a meeting in New Delhi Thursday the finance minister said: “It may be possible that overall growth scenario in 2009-10 is around 7.75 percent if things go on as they are right now.”

In that meeting he mentioned: “The target of growth of 9-10 percent, which we have dreamt for a very long time is now within our reach.”

“Fiscal consolidation” is a key concern but the private sector credit requirement is being met as the government has “front loaded” its borrowings, the finance minister said.