Finance Minister Arun Jaitley and Prime Minister Narendra Modi are all set to give a renewed thrust to agriculture in the Union Budget as unemployment in rural India has peaked in the recent years.
According to a budget wishlist from the Agriculture Ministry, more funds have been sought to mitigate the debts of farmers. The government could be looking at announcing some special schemes aimed at farmers.
"We have suggested that computerisation of primary agricultural credit sources in states and a central scheme to give concessional loans to farmers be introduced in this budget," said an Agriculture Ministry official.
"The same scheme will also look to incentivise states for taking measures to computerise records of farmers' primary credits. NABARD (The National Bank for Agricultural and rural development) would get a higher allocation for implementing this scheme," the official said.
There is also the likelihood of another easy finance scheme for farmers for promoting floriculture and horticulture. The Agriculture Ministry has also set in motion a long term demand for having more budget allocated for development centres to promote farming skills.
"Krishi Vikash Kendras are already there. Now we would like to introduce new employable skills related to farming and food processing," said agriculture secretary Siraj Hussain.
The Food Ministry, too, had sought higher allocation for food subsidy in the form of a Rs 41,000 crore kitty for offering states loans on purchase of subsidised grains. Even before the presentation of the budget, the Food Corporation of India (FCI), have been cleared to receive that amount by the Union Cabinet on Monday. In the budget, there is a likelihood of a 're-look' at some of the ongoing food subsidy schemes of the government, a Food Ministry official said.
Finance Minister Arun Jaitley may announce measures to upgarde farm infrastructure. "There are problem areas in the rural economy which will be addressed," said a Finance Ministry official.
"The drought situation of two years had caused more distress than demonitisaton," said Hussain. The Agriculture Ministry also hopes that the Union Budget will allocate funds for irrigation and other rural-friendly measures.
"We think the government is likely to increase rural spending in FY18 through irrigation, low cost housing and electrification to boost demand," said Goldman Sachs in a research note.
In the last budget, the government had allocated Rs 5,300 crore to support micro-irrigation through schemes like watershed development and Pradhan Mantri Krishi Sinchai Yojana (PMKSY).