Eye on 2019: Govt’s budget to be more farmers' centric with additional allocation on board

NEW DELHI: With the Gujarat poll verdict indicating farm distress had put the ruling BJP on a susceptible wicket in rural spaces, the government's next price range is perhaps more farmers' centric focussing on getting them remunerative prices through marketplace reforms and supporting them through tough credit score facilities and by way of increasing the crop insurance footprint.
Since agrarian crisis can be one of the most key problems within the run up to the meeting polls in Karnataka, Madhya Pradesh, Chhattisgarh and Rajasthan next year and the general election in 2019, the approaching price range will give you the govt a possibility to announce its intent.

"We had a good crop year in 2016-17, but farmers had to face problem in getting remunerative prices of their produce. This is something which we need to address and the budget is likely to focus on this aspect", said a senior official who has been part of a staff to extend agriculture ministry's input for price range to the finance ministry.

The Centre has already taken several measures to handle the issue however will now attempt to reinforce it by way of taking movements like devising more systematic procurement approach and expanding the network of e-NAM (e-National Agriculture Market) from 585 in 2018 to over 1,000 by way of 2020. The thought can be to convey increasingly regulated marketplace on e-NAM platform in order that the farmers can recover worth in their produce without being exploited by way of fee agents and cartel of investors.

"The NITI Aayog and the Prime Minister's economic advisory council too are working on it. Though agriculture is the subject where the states have to be on board for success of many schemes, the government's focus in the budget is likely to be on allocating more fund for centrally-sponsored schemes", said the official.

The finances for expanding e-NAM's footprints, chilly chain, irrigation infrastructure, micro-irrigation and crop insurance scheme are expected to be higher.

"Farmers need input subsidies and minimum support price (MSP) for their produce, but these two alone cannot solve the problem", said the official while emphasising at the want to create tough marketplace mechanisms for farm produce in order that farmers don't face a crisis in a good crop year like what the agricultural Gujarat confronted.


The crop year 2016-17 (July-June) had seen record foodgrain manufacturing of 275.68 million tonnes. Besides, more farmers got here underneath the network of the new crop insurance. Number of farmers, taking advantage of crop insurance additionally higher in 2016-17 as in comparison to 2015-16.


All those, alternatively, do not seem to have addressed the issues. Horticulture manufacturing additionally reached record levels, however didn't end up to be a boon for farmers. There were record of distress selling from many states.


"These are the worrying signs. Loss due to disaster can be tackled through insurance. But the problem of plenty (bumper production) can only be tackled through robust market system, cold chain and effective procurement mechanism. The 2017-18 budget is likely to address these issues", said the official.


Farmers in Saurashtra-Kutch region, the place the BJP's tally went down as in comparison to 2012, noticed prices of cotton and groundnut produce slide. Though the Centre had higher MSP and the state had extended bonus on it, deficient procurement had forced farmers to head for distress sales in open markets that fetched them a lot lower price than the MSP.
Eye on 2019: Govt’s budget to be more farmers' centric with additional allocation on board Eye on 2019: Govt’s budget to be more farmers' centric with additional allocation on board Reviewed by Kailash on December 23, 2017 Rating: 5
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