The agriculture sector has been contributing to about 18-20% of the Indian GDP. Over 14 crore farmers, largely marginal and small, are involved in related activities. Notably, it has been estimated that the livelihood of over 50% of the population (largely rural poor) is intertwined with the sector. Accordingly, the government has been providing priority support to the sector as well as complementary sectors and sub-sectors.
Budget 2021-22 had allotted over 14% of outlay towards related ministries and programs, particularly towards the Public Distribution System and Minimum Support Price, fertilizer subsidy as well as a range of programs aimed at enhancing farmer incomes and strengthening and upgrading value chains.
Today, the country is the global leader in the production of several Agni and allied sector commodities and value-added products. Nevertheless, the sector has been characterized by several constraints that reflect the scope for interventions on various fronts. These include: exploiting scope for global market access given potential; crop diversification towards high-income generating crops including horticulture; enhanced adoption of GAP and farm mechanization; use of High-tech in agriculture; greater focus on climate-resilient agriculture; encouraging aggregation of farmers into more viable producer organizations; reduce wastage and enhance value-addition through the development of infrastructure in the phase of post-harvest, processing as well as logistics infrastructure; enabling enhanced access to necessary credit.
in this context, the budgetary announcements continue with the focus accorded in the previous budget and are much in sync with the needs of the sector:
Price support
• The procurement of wheat in Rabbi 2021-22 and the estimated procurement of paddy in Sharif 2021-22 will benefit 163 lakh farmers. Basically, INR 2.37 lakh crore will be the direct benefit transfer value of MSP into the farmer accounts.
Climate resilient agriculture
• Chemical-free natural farming is to be promoted throughout the country, with a focus on farmers' land in 5-km wide corridors along the River Gang, in the first stage.
• States will be encouraged to revise the syllabi of agricultural universities to meet the needs of natural, zero-budget, and organic farming practices, modern-day agriculture, and value addition.
• 5-7% biomass pellets will be co-fired in thermal power plants resulting in CO2 savings of 38 MMT annually. This is expected to also provide additional income to farmers and job opportunities to locals, and help avoid stubble burning in agriculture fields.
Crop diversification with a focus on value-addition and nutrition
• 2023 has been announced as the International Year of Millets. Support is to be provided towards post-harvest and value addition infrastructure, enhancing domestic consumption, and branding millet products nationally and internationally.
• For farmers to adopt suitable varieties of fruits and vegetables, and to use appropriate production and harvesting techniques, the government will provide a comprehensive package with the participation of state governments.
• Continued focus on initiatives for the development of farmers and women. The focus will also be on market-led production for farmers and economic empowerment through livelihood promotion of women and FPO.
• Thrust on development of the North-East, border villages as well as aspirational districts.
Competitive import substitution
• To reduce the dependence on the import of oil seeds, a comprehensive scheme to enhance domestic production of oil seeds is to be implemented.
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