The 16-point agenda introduced for farmers in the budget is expected to revive the rural economy and increase farmer income. Finance Minister Nirmala Sitharaman has said the government plans to double farmer income by 2022, a move hailed by many experts as a positive one.
Analysts believe that this budget seeks to strengthen grassroots of the economy with its positive push towards creation of a strong agriculture infrastructure
The rural economy, including agriculture, received a meaty allocation besides announcements for storage and logistics among others.
“It is probably for the first time that there has been an effort to move away from the use of chemicals in farming. The budget’s focus on warehousing, storage and transportation through various schemes like Kisan Rail would save farmers from distress sale of their crops and increase price realisation. The finance minister's aim to increase credit availability could ease the credit crunch and give access to the much needed capital. However, the expectations from the sector for a focus on improved water management facilities and reduction of GST on inputs for the sector were not met,” remarked,” Ravindra Agrawal, MD and founder, KisanKraft Limited
Experts feel that the 16-point agenda introduced for farmers would go a long way in reviving the sluggishness of the rural economy. “From the traditional sector perspective, this budget chooses to adopt the path of structural changes in agriculture sector by way of giving input sovereignty, insurance, and making provisions for cold storage and transportation of agriculture produce rather than putting money in farmer’s bank accounts,” observed Arun Singh, chief economist, Dun and Bradstreet India.
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Some experts also observed that this budget aims to empower farmers by increasing their dependence on off grid solutions with solarised grid-connected pumps through the PM Kusum Scheme. “I think that this will act as a catalyst to sustainable irrigation solutions across the country. This abundant allocation in agriculture is likely to positively affect rural development,” remarked Ranganath N.K., area managing director, INDO Region, Grundfos.
Some agriculture experts, however, felt that though there have been no big bank agricultural reforms in the budget, it is a positive move that the government continues to have a strong focus on agriculture and the rural economy. “There were no big bang agricultural reforms in this budget, which is disappointing, but the sixteen proposed initiatives should have a positive impact on the agri-tech start-up ecosystem. We are especially bullish on the newfound attention being given to the blue economy and fish farming,” said Mark Kahn, managing partner, Omnivore, a venture capital firm that funds entrepreneurs in the agriculture and food systems.
