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India's agri budgetary support up by 15.31% during 2017-18

05 Feb 2017

In order to double the income of the farmer in 5 years, Indian agriculture ministry got 15.31 per cent increase in budgetary support at $7.59 billion (Rs 51,026 crore) for 2017-18 fiscal year starting April 1, 2017.

NEW DELHI: In order to double the income of the farmer in 5 years, Indian agriculture ministry got 15.31 per cent increase in budgetary support at $7.59 billion (Rs 51,026 crore) for 2017-18 fiscal year starting April 1, 2017.

During the last fiscal year, agriculture ministry was $6.28 billion (Rs. 45,250 crore).

Speaking on the increase in the support, Indian agriculture & farmers welfare minister, Radha Mohan Singh said that this time it has become very clear again that the Central Government is working for the villages, the poor and farmers.

Singh further added that agriculture growth rate has increased from 2 per cent to 4.1 per cent and it shows that the government is working seriously for the betterment of the farmers and farming.

Singh said that this budget manifests government’s commitment to double the farmers income in a span of 5 years.

Apart from this, provisions have been made to continue erstwhile schemes. Goals of White and Blue Revolution have been reiterated in this budget. Ambitious schemes have been chalked out to promote the agriculture sector in this budget. For instance, a sum of $1.33 billion (Rs. 9000 crores) have been provided for Pradhan Mantri Fasal Bima Yojana resulting in the enhancement of crop security coverage to the farmers.

Agriculture & Farmers Welfare Minister said that this budget has provided security coverage to agriculture sector as well as farmers. The government has made up its mind to dig one million ponds. This is a praise worthy step.

By providing irrigation and fisheries facilities through these ponds, the farmers will be helped to double their incomes. 

In the previous year, 500,000 ponds have been built. Besides, this budget aims to provide 100 employment days to the farmers through MNREGA which is also a praise worthy step.  To promote “per drop more crop”, those areas will also be provided water for irrigation which were earlier deprived of this facility through long term irrigation fund.

The Minister highlighted the following provisions of the Budget:

While accelerating the implementation of Pradhan Mantri Fasal Bima Yojana, 40 per cent agricultural area will be brought under the scheme this year. It was 30 per cent in the previous year.

Similarly, it will be increased to 50 per cent for the year 2018-19. During the previous year, there was a budget provision of $818 million (Rs 5500 crores) which will be increased to $1.33 billion (Rs 9000 crore) during this year.

Simultaneously, an additional sum of $1.14 billion (Rs 7700 crores) has also been provided during this year for the dues of previous year.

Soil Health Card

For all 648 KVKs, a provision has been made to establish mini soil testing labs. 1000 labs will be activated through local entrepreneurs. Loan related subsidy will be provided for this purpose by the government. 

e-NAM

At present, 250 mandis are linked with e-NAM platform which will be increased to 585 mandis. For this purpose, each mandi will be provided assistance up to $111,000 (Rs 75 lakhs) for their basic infrastructures (sanity grading and packaging). In addition to this, it has also been suggested to denotify from APMC Act (Mandi Act) those commodities which are quickly perishable.

Dairy is a prominent part of agriculture economy

During year 2016-17, there was a budgetary provision of $168 million (Rs 1136 crore) for White Revolution which has been increased by 43.8 per cent in the form of $243 million (Rs 1634 crore) for year 2017-18.

Along with this, dairy processing and infrastructural fund will be set up with a sum of $1.19 billion (Rs 8000 crore) for the modernization of old milk processing units under Operation Flood. This will be completed within a period of 3 years. Initially it will be started with a sum of $297 million (Rs 2000 crores).

Blue Revolution is one of the priorities of the government

Keeping this in view, the budget provision of $36 million (Rs 247 crore) for year 2016-17 has been increased by 62.35% amounting to $59.65 million (Rs 401 crore). The MNREGA was given an assurance to make 500,000 ponds during last year to cope with the problem of drought prevailing in rural areas. During present year, 500,000 new ponds will also be built up.

Irrigation scheme

A sum of $771 million (Rs 5189 crore) for Pradhan Mantri Krishi Sinchai Yojna has been increased to $1.09 billion (Rs 7377 crore). Besides a long term irrigation fund has been set up with a sum of $2.97 billion (Rs 20,000 crore) for irrigation scheme in previous financial year concerned with NABARD. During this year, it will be doubled in the form of $5.95 billion (Rs 40,000 crore).

A dedicated micro Irrigation fund with a sum of $743 million (Rs 5000 crores) will be set up for the achievement of the goal of “per drop – more crop”.

Other features in the Budget 

The total loan amount of $133 billion (Rs 9 lakh crore) for previous year has been enhanced as $147 billion (Rs 10 lakh crore) this year. In this respect, dedicated efforts will be made for low irrigated areas, eastern states and Jammu & Kashmir.  In addition to this, as per the announcement made earlier by the Hon’ble Prime Minister, the waiver will also be provided on loan interest for 60 days.

Efforts will be taken to computerize 63,000 PACS being operated by NABARD in the area of cooperatives. This work will be completed within 3 years with an assistance of $280 million (Rs 1900 crores).

Model contact farming law will be formulated to make improvements in the policies relates to agriculture.

 


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