The agriculture sector is an important engine of the economy and it needs continued policy and investment support as almost half of the labour force is still supported by it, and only strong growth can dent rural poverty. With good monsoons holding the key to output and productivity, risks in the sector have not reduced over the decades.

Added to these are the new challenges related to climate changes. It is essential that the upcoming Budget increase public investment and encourage private investment in the agriculture sector, according to the Federation of Indian Chamber of Commerce and Industry.

A stable and clear policy to encourage agri exports should also be laid out so as to ensure that it leads to an increase in India’s share in the global trade of agricultural products, as well as increase the income of farmers and contribute to the overall economy of the country.

To put Indian agriculture on a high growth trajectory, the first and foremost step is to reframe policies and allocate the Budget to resolve both demand side as well as supply-side issues which act as major deterrents to the flow of value-adding investments in this sector .

The Budget should have a special focus on deploying technology that could strengthen agri statistics to reduce information arbitrage on data on sowing, crop condition, prices and stockholding.

India is yet to emerge as a significant trade partner in the world agriculture market. India holds around 1 per cent of the global trade in agri-commodities – the announcement of a stable, medium-term policy on external trade in agri commodities is vital.

The Budget should also introduce a national law to promote ease of doing business in agriculture, especially for the smooth and uninterrupted movement of agri commodities across the country. To promote scientific warehousing, funds should be allocated to NABARD for supporting all registered warehouses of WDRA to create grading and sorting infrastructure, along with commodity assaying capabilities at warehouses.

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