INSUBCONTINENT EXCLUSIVE:
Chemical-free natural farming is to be promoted throughout the country.The agriculture sector has been contributing to about 18-20% of the
Over 14 crore farmers, largely marginal and small, are involved in related activity
Notably, it has been estimated that the livelihood of over 50% of the population (largely rural poor) is inter-twined with the sector
2021-22 had allotted over 14% of outlay towards related ministries and programmes, particularly towards the Public Distribution System and
Minimum Support Price, fertiliser subsidy as well as a range of programmes aimed at enhancing farmer incomes and strengthening and upgrading
Nevertheless, the sector has been characterised 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 mechanisation; use of digi-tech in agriculture; greater focus on climate resilient
agriculture; encouraging aggregation of farmers into more viable producer organisations; reduce wastage and enhance value-addition through
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
2021-22 will benefit 163 lakh farmers
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
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
Support is to be provided towards post-harvest and value addition infrastructure, enhancing domestic consumption, and for branding millet
production and harvesting techniques, the government will provide a comprehensive package with participation of state governments.Pro-poor
institutions along with private players
This is to finance start-ups for agriculture - rural enterprise, relevant for the farm value chain
The activities for the start-ups will also support FPOs, facilitate machinery for farmers on rental basis at farm level, and also technology
including IT-based support.Fiscal incentivesPresently, cooperative societies are required to pay a minimum alternate tax at the rate of
However, companies pay only at the rate of 15%
also be reduced from the present 12% to 7% for those with total income of more than INR 1 crore and up to INR 10 crore
This would help in enhancing the income of cooperative societies and its members who are mostly from rural and farming communities.Many of
the other budgetary pronouncements also complement those related to agriculture such as Gati Shakti related infrastructure
The related investments including in multi-model logistics parks and cargo terminals will facilitate the move towards a single domestic
market for agro commodities, as well as global market connectivity
The government's focus on the agriculture and allied activity value-chain is most comprehensive and reiterates its focus on evolving
global competitiveness for evacuation of marketable surplus, even while addressing the needs of those at the bottom of the
pyramid.(Disclaimer: These are the personal opinions of the author.)
