Finance Minister Nirmala Sitharaman will present the general budget tomorrow i.e. on Monday. Farmers and agriculture sector can get a big gift in the budget. In fact, the Economy Survey has said that India’s agriculture sector needs comprehensive reforms. The survey has cited structural issues that can become an obstacle in the way of the country’s overall economic growth. The review presented in Parliament by Finance Minister Nirmala Sitharaman has identified several major challenges facing the agriculture sector, including the need to maintain growth while managing food inflation, improving the price discovery mechanism and solving the problem of land fragmentation. This indicates that farmers can get many concessions in the budget. The Finance Minister can announce many gifts to improve the condition of farmers.
Farmers will have to focus on increasing production
“Despite its central role in India’s growth trajectory, the agriculture sector faces structural problems that could have implications for the country’s economic growth,” the review says. Policymakers must strike an appropriate balance between encouraging farmers to increase production and keeping food prices within acceptable limits, the review says. This dual objective requires careful policy interventions, the report said, prepared by Chief Economic Adviser (CEA) V. Anantha Nageswaran. Other key issues highlighted include the need to reduce hidden unemployment, enhance crop diversification and increase overall efficiency in the sector.
Tips to overcome these challenges
To address these challenges, the Review has suggested a multi-pronged approach. The key suggestions include upgradation of agricultural technology, application of modern skills in agricultural practices, increasing agricultural marketing opportunities, price stabilisation, adoption of innovation in farming, reducing wastage in the use of fertilisers, water and other inputs and improving agro-industry linkages. The Review emphasises the importance of technological interventions and skill development in transforming the agricultural landscape. It also emphasises the need for environment-friendly processes to ensure the long-term viability of the sector. The Review said that policy reforms undertaken by the government in the last decade have laid the foundation for sustained medium to high growth in the years to come.
“Bottom-up reforms are needed to sustain growth for a generation to 2047 or beyond, and to ensure that it improves people’s lives and meets their aspirations,” the review says.
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