The budget spells green- shoot for agri subsectors

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Although Budget has had no big ticket announcements on agriculture and rural development but it tries to focus on subsectors that matter such as livestock, fisheries and food processing.

Which sub-sectors in agriculture have seen an increase in allocation in the budget?

Livestock and fisheries- These two subsectors roughly contribute about 33% of the gross value added in agriculture and more than 15% of farmer’s income is derived from livestock subsector. Allocation for livestock health and disease control, National Livestock Mission , Pradhan Mantri Matsya Sampada Yojana has increased.

Value addition in agriculture-Allocation for the Production-linked incentive scheme for food processing has increased which will help in Value addition in agriculture.

Allocation for the Rashtriya Krishi Vikas Yojana, or RKVY has been increased which is line with this year’s budget’s emphasis on capital expenditure.

Agri-infrastructure- Allocation for the Agriculture Infrastructure Fund (AIF) and Formation and Promotion of Farmer Produce Organisations (FPOs) scheme has been increased.

Technology– Apart from the increased allocations in above sub-sectors , Budget envisages to promote kisan drones and encourage start-ups to improve value chains of farm produce. The adoption of modern technology in agriculture should not only help the rural economy but could also possibly encourage the younger generation to consider agriculture as a career option.

Which sub-sectors have seen a decrease in allocation in the budget?

Output price support– Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), has received an allocation of just ₹1 crore.

The allocation for the Price support programme of pulses and oilseeds (the Market Intervention Scheme and Price Support Scheme, or MIS-PSS) and Price stabilisation fund has declined.

Subsidies– The budgeted estimate of fertilizer subsidy and food subsidy have shown a decline.

Although most major rural development programmes such as the Pradhan Mantri Gram Sadak Yojana (connectivity to unconnected habitations), the Pradhan Mantri Awas Yojana (housing for all in urban areas) have received small increases in allocations but Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is an exception here . This flagship rural employment programme, which has been instrumental in reducing distress in the rural economy during the waves of the COVID-19 pandemic, has received lower allocation.

Source– This post is based on the article “The budget spells green- shoot for agri subsectors” published in The Hindu on 21^st Feb 2022.