Business Standard Budget 2018: Things to know about agri, dairy sector and their expectations
Ahead of Union Budget 2018-19, to be presented by Finance Minister Arun Jaitley on February 1, here are the Budget expectations of the agriculture and dairy sectors
Ahead of Union Budget 2018-19, to be presented by Finance Minister Arun Jaitley on February 1, here are the Budget expectations of the agriculture and dairy sectors Agriculture India is the second largest producer of agriculture product and its contribution to the Indian GDP at 18% is much higher than world's average GDP. Yet the sector needs significant focus with a view to improving rural economy and livelihoods. Key Challenges 1. Price Fluctuation: Farmers are frequently at the mercy of traders, inspite of good produce the price the farmers get is not sufficient to even cover the expenses. Initiatives such as Minimum Support Prices (MSPs) and Agricultural Produce Market Committees (APMCs), which were supposed to protect the farmer are not helping in good returns. 2. Lack of Infrastructure: Inadequate rural infrastructure, roads & transport systems, food processing units, reliable power and cold-storage, continue to hinder farm operations and increase costs. Further, there is limited access to resources such as financial services, credit, support expertise, educational services or irrigation solutions. 3. Existing crop insurance do not benefit farmers: Insurance schemes are seen as an added burden over and above the loans the farmers are already struggling to pay. Less than 20% of farmers in India are covered under crop insurance. 4. Poor performance of farm exports - The country is being denied market access in the name of health and safety regulations. Prohibitive import duties and high subsidies are constraining India’s farm exports. Measures have to be taken to incentivize India competitive agro products and removal of non-tariff barrier. 5. Lack of technological advances: Farmers do not have access to quick soil testing methods to know micronutrients in the soil. Other challenges are poor access to market information for forecasting, weather, price & yield at the time of sowing. Budget 2018 Expectations Agro reforms are the need of the day. To start with, the upcoming budget should encourage Corporate-Farming to protect farmers from price risks. The government should strengthen recently drafted model contract farming act and encourage states to adopt it as per their needs........read more