Agri sector hopes for a pivotal push from Union Budget 21-22

For agriculture, which was the only sector to witness expansion all through the Covid-19 pandemic, expectations are substantial from the Union Price range 2021-22. The sector is likely to see increased allocations specifically in the areas of agriculture credit rating, PM Kisan and irrigation amid other folks.

Business gamers are searching ahead to incentives this kind of as reduced taxes for agri-tech and distinct interventions for crop R&D and article-harvest infrastructure.

The Price range must aim on augmenting source-demand from customers mismatches in areas this kind of as pulses, animal protein and dairy, as the outlays ended up disproportionately tuned toward erstwhile eco-friendly revolution crops this kind of as rice and wheat, claimed Anand Ramanathan, Companion, Deloitte India.

“It is time to acquire a decadal watch and aim on just one or two areas this kind of as oilseeds and pulses, exactly where we are nevertheless import dependent and also on horticulture crops,” claimed Ramanathan. Apart from, it must also aim on advertising and upgradation of technology in agriculture, incentivise ag-tech to produce and create a lot more alternatives to handle the troubles in the sector.

Also, there is a want to look at partnering with States to encourage distinct crop clusters and subsequent downstream processing. “An infrastructure standing to the warehousing sector would support in improving the shelf life of the farm produce,” Ramanathan claimed.

Sops for food stuff processing

“Agriculture and its allied things to do involve a pivotal press in the upcoming Price range. The food stuff processing field has performed an essential function in improved selling price realisation for farmers and in decreasing the cost of intermediaries. Appropriately, the Price range should provide distinctive incentives to food stuff processing this kind of as desire subvention, reduced taxes, obtain to technology and other steps,” claimed Ajay S Shriram, Chairman and Senior Handling Director, DCM Shriram Ltd.

He added, “Moreover, the immediate benefit transfer mechanism can be good-tuned and progressively utilized to assist farmers in area of other subsidies. Enable farmers determine how to use the money judiciously. Backed by the benefit of DBT, farmers will be properly placed to invest in improved seeds, use new-age fertilizers and improve water utilization.”

“Agricultural R&D needs directional assist to support attain breakthrough in technology and improved planting material. Two areas that want speedy attention are linkage of agricultural research with field necessities and keeping away from ideological resistance to modern-day technologies this kind of as GM crops. The authorities should also come out with a coverage for agri-tech that encourages the expansion of Indian begin-ups along with the adoption of the most recent tactics. More, it is essential to regularly talk and link with the farmers to ensure they get the highest advantages from the insurance policies,” Shriram claimed.

Target on Micro Irrigation

Randhir Chauhan, Handling Director, Netafim India, claimed that to popularise micro-irrigation, the authorities must set in area a mechanism to ensure clean stream of cash, in order to attain the focus on of bringing in added 10 million hectares under micro irrigation in five several years. Also, there is a want to streamline the process of disbursal of micro-irrigation subsidies.

More, the micro irrigation field requirements to be offered infrastructure standing, a go that would support speed up its expansion and deliver down the cost of products for the farming neighborhood.

Level enjoying area for agri NBFCs

The agriculture sector needs significant funds dedication, as procurement of products remains a key spend for most farmers. Nonetheless, most of the agricultural credit rating prolonged to farmers is of a operating funds character. To simplicity the obtain of credit rating and assist financial inclusion, agri-NBFCs have a key function featuring obtain to finance for farming products and equipment. Nonetheless, these NBFCs have customarily been excluded from the purview of authorities subsidy strategies.

“The Price range must ensure that agri NBFCs are included in the key authorities subsidy strategies and programmes, a benefit hitherto readily available only to the financial institutions. This kind of a go will permit agri NBFCs to arise as a major contributor in funding the agri price chain,” claimed Prabhat Chaturvedi, CEO, Netafim Agriculture Funding Agency (NAFA).

“Agritech has been instrumental in supporting India handle disruptions brought on by the administration of Covid-19. The early stage enterprises aimed at article-harvest price addition should be incentivised and inspired, as the advancement of progressive clean produce source chains, and a vivid food stuff processing sector, are key to improved selling price realisation for farmers,” claimed Jinesh Shah, Handling Companion of Omnivore.

Amith Agarwal, co-founder and CEO, Agribazaar, claimed agriculture must be treated as a precedence sector, universally, not just by financial institutions, but by the entire financial eco-method specifically services suppliers like rating companies.

The authorities must further incentivise modest- and medium-scale gamers with tax exemption strategies to invest in rural cold-chain and agri-logistics infrastructure.

Incentivising agri-tech gamers with tax exemptions and rebates will make it a lot more feasible for these organizations to build influence at scale. This go will also permit agri-tech organisations to improve their jobs speedier by supporting a lot more major investments in their research and advancement efforts, claimed Agarwal.