Expectations of the Agriculture Sector from Union Budget 2021

Expectations of the Agriculture Sector from Union Budget 2021 The budget outlay for the agriculture sector in the fiscal year 2021 has increased significantly, where a majority of the allocations are for incentives and subsidies such as PM Kisan. 94% of the total allocations have been made towards the Department of Agriculture, Cooperation and Farmers Welfare, and the remaining allocations are for the Department of Agricultural Research and Education. The allocation of funds towards R%D is low as compared to global standards and can affect the overall productivity of the sector.

Here are the three key expectations from budget 2021 expectations on agricultural sector:

1. Improving Productivity As an effort to improve the productivity of the sector, the budget can allocate more into the following areas of agriculture● Subsidise the interest on long-term loans An interest subsidy would help farmers to make long-term investments in farming-related equipment such as infrastructure, irrigation, etc. The focus will shift from the recurring deposits and expenditures made on harvesting, sorting, and transportation. ● Insurance on crops Due to unpredictable climate changes and weather, farmers face challenges in farming. Many farmers are unaware of schemes and policies that can benefit them. A larger budget allocation will help bring more farmers under the scheme and benefits as they become aware of the benefits. ● Issues in Irrigation There are various issues in the irrigation system, and the government can help address problems related to the availability of water and provide incentives for farmers to adopt drip irrigation.

● Introducing the new schemes on vertical farming There is a visible scarcity of land, promotional campaigns, and incentives on investments for better equipment, system, and infrastructure can be supported and designed.

2. For Quality Maintenance, Monitoring and Upgrading Allocations of budgets should be increased to improve the soil health, set up labs, and improve infrastructure. ● The focus of the allocation should be on improving soil health with a balanced use of urea and fertilizers. ● Mobile testing labs can be created using the increased allocation. These labs can benefit small and marginal farmers who otherwise lack such resources in or around their areas. ● Focus on the modernization of existing labs and the establishment of new labs using the increased funds. These can further boost and accelerate the improvement in food safety and norms imposed by importers.

3. Increase Research and Development Funding A priority must be given to the research and development sector in agriculture as it has a significantly low percentage of allocation. ● India relies on importers for major commodities such as vegetable oils and pulses. Funds should be allocated to increase the domestic production of such commodities. ● Non-farming activities such as livestock farming are a pillar to boost a farmer’s income. However, due to various diseases that affect mortality, production, and overall productivity, this sector is unable to reach its potential. ● Funding for livestock farming can help work on vaccines and develop the necessary infrastructure and improve the condition of non-farming methods of livelihood.

The government is expected to continue its efforts in improving the agriculture sector. The government must better focus on infrastructure, research, and development, productivity. Increasing the budget to address these age-old issues can help improve the agricultural landscape. Check more details on Budget Expectation 2021 for Agriculture Sector