The Union Budget has taken strong steps in the direction of balanced and inclusive growth, emphasising on increased agricultural productivity by strengthening key foundational elements, such as water, soil and infrastructure, to create lasting benefits.

The Budget also seeks to lay the framework for capacity building in rural India, the importance of which cannot be overstated if agriculture is to contribute more effectively to national growth.

The Government’s clear intent to increase agricultural productivity and help the farmer get reasonable prices for agricultural production is a welcome move.

The biggest challenge facing Indian farmers is the lack of access to credit. This diminishes the capacity of farmers to invest in quality agricultural inputs and often adds to the financial strain on farmers. The allocation of ₹15,000 crore for long-term rural credit fund, ₹45,000 crore for short-term cooperative rural credit refinance fund and ₹15,000 crore for short-term RRB (regional rural banks) refinance fund, will all go a long way in strengthening the structure of rural credit disbursement. Raising agriculture credit target by ₹50,000 crore to ₹8.5 trillion for 2015-16 will give famers access to more financial resources, increasing their confidence.

One of the big initiatives announced in it is the creation of a National Agriculture Market. This, we believe, will help resolve demand-supply gaps, and provide for better farm-consumer linkages. Therefore, while the Union Budget is an important announcement, the Government would do well to focus on holistic reforms to transform the agriculture sector and drive economic momentum based on inclusive growth and rural youth involvement.

The writer is CEO, Monsanto India Region

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