Agriculture may see big push

Vibha Sharma

Tribune News Service

New Delhi, June 17

Agriculture is among the sectors expecting a major push in the Budget for 2019-20. Marathon meetings are being held between Finance, Agriculture and related ministries to fine-tune Finance Minister Nirmala Sitharaman’s first presentation that is expected to underline Prime Minister Narendra Modi intent at the recent Niti Ayog meeting — to push for structural reforms in the distressed sector to boost private investment, strengthen logistics and market support to farmers.

Indications are that Sitharaman will be making some big ticket announcements for the sector. However, while the key to improvement in the visibly-ailing sector is investment and legal and structural reforms, experts also urge the government to be careful of “any steps that may result in a situation like the US”.

It is not just India, the US farmer suicide crisis echoes a larger issue unfolding globally, they add. Issues galore, but a beginning needs to be made with investment in the sector, as the ruling BJP promised in its 2019 election manifesto. The party manifesto promised Rs 100 lakh crore investment in the infrastructure sector by 2024. Along with the promise of doubling farmers’ income by 2022, it assured an investment of Rs25 lakh crore to improve the productivity.

Agriculture expert Devendra Sharma says it is now time for the government to keep what the party promised. “In its 2019 manifesto, the BJP promised Rs 25 lakh crore investment in the next five years. In this Budget they can make a beginning with Rs 5 lakh crore,” he says.

A push by the government followed by private companies appears to be a way out for the sector which between 2011/12 and 2016/17 saw investment worth only 0.4 per cent of the GDP, but caters to the 50 per cent of country’s population, says Sharma.

“Along with enhancing irrigation facilities, the government needs to invest deeply in infrastructure for maintenance of yield and processing. If there can be an ease of doing business why cannot there be an ease of doing farming, it can be the biggest structural reform,” he adds.

Notably, the government has already announced a high-level task force to bring structural reforms in the sector along with changes in the Essential Commodities Act.

Experts are also expecting reforms in laws governing land issues in collaboration with the states — land leasing, contract farming et al. Government functionaries say for private investors to be interested in the sector, legal changes are required. There is also an issue of landless farmers who cannot get facilities due to lack of legal reforms. But quoting the US example, skeptics warn that laws need not be changed, but improved.

BJP manifesto Calls for...

• The govt is committed to promise of doubling farmers' income by 2022
• Complete digitisation of land records and new second-generation land reforms 
• Encouraging solar farming to support farmer for additional source of income
•  Impetus to allied sectors, fishery, dairy etc 
•  e-commerce portal dedicated to organic produce 
• Interest-free Kisan Credit Cards loans up to Rs 1 lakh for 1-5 years