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Budget 2022: Important Measures for Agriculture

1. Preface : -

In the recently presented budget, a lot of emphasis has been laid on activities related to high value addition of agriculture and crop diversification.
Livestock sector is growing at a CAGR(Compounded Annual Growth Rate) of 8.15 per cent.
The budgetary allocation for Animal Husbandry and Dairying Department is Rs 3198.84 crore. In which there is an increase of 44.40 percent as compared to the previous year.
A budgetary allocation of Rs 2,118.47 crore has been made in the budget for the fisheries department. Which shows an increase of more than 50 percent as compared to the previous financial year. Along with this, Rs 1,24,000 crore has been allocated to the Agriculture and Farmers Welfare Department.

2. Important facts : -

AtmanirbhartoAmrit Kaal: -
The budget 2022 tries to maintain and strengthen the will towards development, of self-reliant India. The government presents its budget as a blueprint for the eternity, which rests on futuristic and inclusive economic growth. 'Inclusive growth' is one of the four priorities to realize this goal.
Positive spillover effect:
the most positive effect of growth in the agricultural sector is in reducing poverty.

3. India's following agricultural needs have been outlined in the budget:

4.The budget emphasizes that not only the schemes of the Ministry of Agriculture under the agriculture sector but also the allocations and programs by the various ministries/departments related to the agriculture sector should be appraised.

5.Measures for Agriculture in Budget:

Crop Diversification: -
The budget has given adequate attention to less cultivated crops like oilseeds and coarse cereals.
i) India has been importing edible oil worth Rs 70,000 crore annually
ii) By promoting domestic oilseeds and other sources like palm, India can reduce import dependence in the production of edible oil.
Pulses for Prosperity:
Pulses are also climate change resistant crops, which along with nutrition, strengthen India's efforts in climate control action.
i) Coarse cereals and pulses will be used for post-harvest value addition, increasing domestic consumption and integration with the supply chain.
ii) Promoting 'crop diversification' to ensure the production of these crops is an integral part of smart agriculture.
Climate Smart Agriculture:
Digital technology for smart agriculture has been promoted as a complement to production technology in the budget.
i) Digital technology covers various issues in the value chain including 'Kisan Drones'.
ii) These include production planning, resource use efficiency, monsoon and market-borne risks.
iii) Digitization of land records and providing digital hi-tech services has been targeted.
Farmer Producer Organization (FPO) Revolution: -
i) The aggregation of agri-products by FPOs can lead to better prices by increasing the amount of marketable surplus.
ii) The compounded capital to be raised under co-investment model through NABARD will strengthen the budgetary allocation.
Agriculture and Rural Entrepreneurship:
The spin-off effect of funding agricultural and rural entrepreneurship start-ups linked to the agricultural produce value chain, will expand the footprint of agriculture into secondary agriculture.

6. Suggested solutions in the budget: -

Credit Support: -
i) Substantial support by higher allocation for the Ministry of Food Processing Industries (an increase of over 125 percent).
ii) Various initiatives taken in favor of the MSME sector, including the Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE), expand the credit size to Rs 200,000 crore.
iii) Focus on Sustainability: - Secondary agriculture and the resultant growth of the bio-economy will encourage eco-friendly developmental approach while generating employment and income.
To make the agriculture sector carbon-free:
i) Efforts have been made to promote solar energy, circular economy, carbon neutral economy, agro-forestry and private forestry, striking a balance between energy transition and climate action.
ii) In thermal power plants, if 5-7 percent biomass is burnt as per the target, then employment opportunities for local people and additional income for farmers will be created along with reduction in carbon dioxide emissions.
Interlinking of rivers: -
i) A commitment has been made to finance the Ken-Betwa RiverInterlinking Project as well as five other river interlinking projects.
ii) Whenever there is a consensus of various states on these schemes, then the drought-prone areas will get the benefit of the scheme.
iii) It will strengthen the objective of harvesting usable water in the country under the AIBP (Accelerated Irrigation Benefits Programme (AIBP))being run under the Ministry of Jal Shakti.

7. Conclusion: -

i) The focus of the government is to make high capital investment by aggregating the budgetary and non-budgetary financial sources by synthesizing the policies and programs of various ministries. For example, the Railways intends to develop infrastructure for small farm products.
It is a harmonized inter-ministerial approach that will enhance capital use efficiency, which is expected to have a positive impact on agricultural growth.
The vision of the government through the budget is to transform the agriculture sector into a system of employment generation, income generation and sustainable enterprise, as well as ensuring food and nutritional security.

Keywords: – Sustainable Agriculture, Eternal to Self-Reliant, Crop Diversification, Climate Smart Agriculture, Co-Investment Model, NABARD, circular economy, carbon neutral economy, AIBP programme.

Economy: Foreign Exchange and India
वस्तु एवं सेवा कर (GST)

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