Budget 2022: Centre sticks to retaining ongoing programmes for farmers

Even as the farmer bodies threatened to resume their agitation over delay in setting up the MSP panel and granting compensation for farmers who died during the course of agitation, Finance Minister Nirmala Sitharaman, while presenting the annual budget, announced direct payment Rs 2.37 lakh crore as MSP for wheat and paddy to over 163 lakh farmers.

There was an expectation that the government may announce more measures or sops for farmers in the wake of the agitation and the upcoming assembly elections, but Sitharaman stuck to retaining the ongoing programmes.

In terms of new announcements, the finance minister said chemical-free natural farming will be promoted throughout the country, with a focus on farmers’ lands in 5km radius along river Ganga, in the first stage.

Sitharaman said the use of ‘Kisan Drones’ will be promoted for crop assessment, digitisation of land records, spraying of insecticides and nutrients. To reduce dependence on import of oilseeds, a rationalised and comprehensive scheme to increase domestic production of oilseeds will be implemented.

The minister also announced support for millet products and a comprehensive package for food processing with participation of state governments.

Later, addressing a press conference, Sitharaman, reacting to a question of doubling the income of farmers, said the government has taken a number of steps to reduce the financial burden of farmers. “There is MSP, urea, nutrients, Rs 6000 paid as kisan samman nidhi, use of solar panels; all these are part of the government efforts to help farmers. We gave fertiliser subsidy so that the farmers are not burdened.”

The finance ministry officials also referred to increase in agriculture credit which has risen to Rs 16.5 lakh crore, this year, and will go up to Rs 18 lakh crore next year.

Among the various steps announced in the budget included digital and hi-tech services for farmers. This new scheme will be launched in PPP mode under which farmers will be provided with digital and hi-tech services. There will be involvement of public sector research and extension institutions along with private agri-tech players and stakeholders of agri-value chain.

Sitharaman also announced setting up of start-up fund for agriculture and rural enterprise. This fund will be blended capital, raised under the co-investment model, and facilitated through NABARD. The aim of the fund will be to “finance start-ups for agriculture and rural enterprise, relevant for farm produce value chain”. The activities for these start-ups will include machinery for farmers on rental basis at farm level, and technology including IT-based support for FPOs.

The finance minister also referred to Ken-Betwa link project which she said will help farmers with irrigation. “Implementation of the Ken-Betwa Link Project, at an estimated cost of Rs 44,605 crore will be taken up. Its aim is to provide irrigation benefits to 9.08 lakh hectare of farmers’ lands. It will also provide drinking water supply for 62 lakh people in addition to 103 MW of Hydro, and 27 MW of solar power,” she said, and pointed out that allocation of Rs 4,300 crore in RE 2021-22 and Rs 1,400 crore in 2022-23 have been made for this project.

She also announced that draft DPRs of five river links- Damanganga-Pinjal, Par-Tapi- Narmada, Godavari-Krishna, Krishna-Pennar and Pennar-Cauvery have been finalised. The Centre will provide support for implementation after the consensus among beneficiary states.

The finance minister said states will be encouraged to revise syllabi of agricultural universities to meet the needs of natural, zero-budget and organic farming, modern-day agriculture, value addition and management.

The budget for farmers was criticised by the farmers groups. They had already announced that they be left with no option but to resume their agitation if the government continues to renege on the promises made to protesting farmers in December 2021. The Samyukta Kisan Morcha had already submitted a memorandum to President Ram Nath Kovind, talking about their demands.

“Due to the tireless efforts of the farmers, despite the lockdown and the economic slowdown, the agricultural production of the country has increased continuously. Playing tricks with farmers can be disastrous for the whole country”, says the memorandum by the farmers.

The morcha will continue 'Mission Uttar Pradesh' and campaign across the state to defeat BJP. The new phase of the mission will be announced on February 3.