The Budget has focused on strengthening the agricultural sector and rural development. The total allocation for rural, agricultural and allied sectors for 2017-18 is ₹1,87,223 crore, 24 per cent higher than last year. India has suffered from inefficient price discovery and price realisation for farmers because of the fragmented nature of the markets. With an integrated spot and derivatives market, these prevailing gaps will be plugged.
The target for agriculture credit has been increased to ₹10 lakh crore. Agriculture needs investments and farming households are its biggest investors. The more the credit available to them, the greater the investment in agriculture production and infrastructure. The computerisation and integration of all 63,000 functional Primary Agriculture Credit Societies with the Core Banking System will help ease the flow of credit to small farmers and boost rural investments.
Recognising the role of post-harvest management of produce in improving farmer realisation, the Budget has given the required push to creating the infrastructure for improvement of quality. This is the key building block of the National Agri Market (e-NAM). The expansion of e-NAM to 585 mandis will help in standardisation of agri produce and also inculcate quality consciousness among farmers.
Amending the Negotiable Instruments Act will help address farmers’ apprehension over dishonoured cheques; the restored trust will go a long way in encouraging them to board online platforms.
(With inputs from Amit Bablani)
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