Higher allocations to PM-KISAN, the scheme that provides minimum income support to farmers, enhanced funds for rural housing, rural roads and rural employment, extra-budgetary support to strengthen farm infrastructure and reduce post-harvest losses are among the key announcements expected from the forthcoming Union Budget 2024 to help agriculture and rural farmers.
In a pre-Budget note to investors, Kotak Institutional Equities stated that the Union Budget is expected to provide higher allocation to the rural and agricultural sectors along with a combination of higher capex targets and further fiscal consolidation.
"The path forward for India's agricultural sector lies in embracing technology, private sector engagement, market liberalisation, efficient resource utilisation, and strong infrastructure development. This requires a joint participatory approach from all concerned stakeholders including the farmers, input vendors, traders, processors and the government. The upcoming Union Budget can be very effective in laying down a comprehensive policy framework and providing a thrust through appropriate fiscal benefits and closely monitoring the action plans, challenges and recommendations," states industry chamber PHDCCI.
CareEdge Ratings, another agency which has an outlook on what the Union Budget may offer to the agricultural sector, expects more incentives for the promotion of organic fertilisers to make India a hub for organic fertiliser production and an increase in Minimum Support Price (MSP) of Sugar to commensurate with increased Fair & Remunerative Price (FRP) of sugarcane.
"The upcoming budget is anticipated to maintain continuity in key measures outlined earlier. Focus areas include enhancing farmers' income, reducing food waste, managing price pressures, and fostering growth in micro and small food processors. Initiatives such as PM Kisan Nidhi Yojana and PM Fasal Bima Yojana, aimed at providing minimum income support and crop insurance respectively, are expected to continue," says Shashank Singh, CEO and co-founder, Poshn, a platform that takes a product-first approach in B2B commodity trade.
The coalition of farmer organisations, the Samyukt Kisan Morcha (SKM), however, reiterated their long pending demands to be considered in the Union Budget. This includes a legally guaranteed Minimum Support Price calculated according to the formula suggested by M.S. Swaminathan Committee some years ago, guaranteed procurement for all crops, comprehensive loan waiver plan for farmers and agricultural workers, comprehensive insurance coverage for all crops and animal husbandry under the Public Sector and pension of ₹10, 000 per month to all farmers and agricultural workers. SKM also demanded a separate Union Budget for Agriculture with an adequate share of GDP.
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