Natural farming methods without chemicals will be encouraged across the country.
Agriculture has been contributing about 18-20% of India’s GDP. More than 14 crore farmers, mostly marginal and small, are engaged in related activities. Notably, it is estimated that the livelihoods of more than 50% of the population (mostly the rural poor) are related to this industry. Accordingly, the government has been providing priority support to this sector as well as complementary areas and subsectors.
The 2021-22 budget has allocated more than 14% of funds to related ministries and programs, particularly for the Public Distribution System and Minimum Subsidy, fertilizer subsidies as well as a range of programs. to increase farmers’ incomes and strengthen and upgrade value chains.
Today, the country is a global leader in the production of a number of agricultural and allied value-added commodities and products. However, the field is characterized by a number of limitations that reflect the range of interventions across different dimensions. These include: scope of exploitation to reach the potential global market; diversify crops towards generating high income, including gardening; increasing the application of GAP and mechanization of the farm; use of digi technology in agriculture; more focus on climate-resilient agriculture; encourage the consolidation of farmers into more viable production organizations; reduce waste and enhance added value through the development of post-harvest and processing infrastructure as well as logistics infrastructure; enabling improved access to essential credit.
In this context, budget announcements continue to focus on the focus of the previous budget and are very much in sync with industry needs:
Price support
• Wheat procurement in Rabi 2021-22 and estimated rice procurement in Kharif 2021-22 will benefit 163,000 farmers. Basically, 2.37 lakh crore INR will be the value of direct benefit transfer of MSP to farmer’s account.
Climate Resistant Agriculture
• Chemical-free natural farming will be promoted throughout the country, focusing on farmers’ land in a 5 km wide corridor along the Ganga River, in the first phase.
• Countries will be encouraged to revise the curriculum of agricultural universities to meet the needs of organic and natural farming methods, low budget, modern agriculture and added value .
• Biomass pellets of 5-7% will be co-burned in thermal power plants, saving 38 MMT CO2 annually. This is expected to bring additional income for farmers and job opportunities for local people and help avoid burning of straw in agricultural fields.
Crop diversification focusing on added value and nutrition
• The year 2023 has been declared as the International Year of Millet. Support will be provided for post-harvest and value-added infrastructure, improving domestic consumption and branding of millet products nationally and internationally.
• In order for farmers to adopt the right fruit and vegetable varieties and use the right harvesting and production techniques, the government will provide a comprehensive package with the participation of the state governments.
Focus on the poor and balanced regional development
• Continue to focus on initiatives for the development of farmers and women. There will also be a focus on market-leading production for farmers and economic empowerment through women’s livelihood promotion and FPO.
• Promote the development of the Northeast region, border villages as well as aspirational districts.
Competitive import substitution
• To reduce dependence on oilseed imports, a comprehensive plan to increase domestic oilseed production will be implemented.
Agricultural extension services and digital technology
• Facilitating the delivery of digital and high-tech services to farmers with the participation of public sector research and extension organizations along with private organizations. A related program in PPP mode will be launched.
• The use of ‘Drone Kisan’ is recommended for crop evaluation and spraying of pesticides and nutrients.
• The digitization of farm records should be promoted.
• A mixed-capital fund, which will be facilitated through NABARD. This is intended to finance agricultural and rural start-ups, which are linked to the farm value chain. Activities for startups will also support FPO, facilitate machine support for farmers on a rental basis at the farm level, and also technology including IT-based support.
Fiscal incentives
Currently, cooperative societies are required to pay a minimum rotational tax of 18.5%. However, companies only pay at 15%. To provide a level playing field, the rate for cooperative societies will also be reduced to 15%.
The surcharge for cooperative organizations will also be reduced from the current 12% to 7% for those with gross income above INR 1 crore and up to INR 10 crore. This will help raise the income of the cooperative society and its members, who are mostly from rural communities and farmers.
Many other budget statements also complement those related to agriculture such as infrastructure related to Gati Shakti. Related investments including multi-model logistics zones and cargo terminals will facilitate the move towards a single domestic market for agricultural commodities, as well as market connectivity. Global. The government’s focus on agricultural value chains and allied activity is the most comprehensive and reiterates their focus on enhancing global competitiveness to eliminate market surpluses, even when addressing needs of those at the bottom of the pyramid.
(Disclaimer: These are the personal opinions of the author.)
