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Reigniting hopes of farm sector, TN to present separate Agri budget

Expectations have soared among the farming community as Tamil Nadu is all set to get an exclusive budget for Agriculture on February 14, a day after the general budget. After Karnataka and Andhra Pradesh, Tamil Nadu becomes the third state in the country to launch such an exercise. Battered by successive cyclones and droughts, agriculture is in a bad shape in the state and the sector is in dire needs of massive investment and technological up-gradation.

Agri budget
Agri budget

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Published : Aug 11, 2021, 9:34 PM IST

Chennai:Raising the bar and to set ambitious goals for the farm sector, the DMK government of MK Stalin is all set to present a separate budget for agriculture. And, Tamil Nadu becomes the third state, after neighbouring Karnataka and Andhra Pradesh to come up with this exercise, to erase the entrenched notion that agriculture continues to be neglected and hence deserves special attention.

A poll promise of the DMK, the decision to have a separate farm budget has been welcomed by parties across the political spectrum. State agriculture minister MRK Panneerselvam will present the Agriculture Budget on August 14, a day after finance minister PTR Palanivel Thiagarajan presents the state budget, a paperless e-Budget.

Enthusiasm has replaced despondency, giving rise to huge expectation among farmers, both small and large farmers as well as leaders of farmers' associations with all of them coming out with a wish list. Foremost among them is the demand for adequate investment and simplified credit facilities as well as access for marketing so as to lift the poor and impoverished farmer from poverty.

That Indian agriculture is a gamble of monsoons is known to every student of economics. And in the last decade, the Agriculture sector in Tamil Nadu has been in a crisis primarily due to successive cyclones – Vardha, Nilam, Gaja among others - and severe drought that hit the state. Given this scenario, various farmers' fora and leaders of agricultural associations and agronomists have come out with concrete suggestions and demands.

Budgetary allocation for agriculture during the AIADMK government in 2019-2020 was Rs 10,550.48 Cr and in 2020-21, it was Rs 11, 894.48 Cr, a marginal increase. In 2021-2022, it was more or less same with Rs 11,982 Cr. This drew criticism that the government had not hiked the budgetary allocation despite the pandemic. Now, the farmers' leaders insist that the allocation should not be less than Rs 15,000 Cr to meet the needs of the sector, which had to be treated on a par with the industry.

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“Only 17 percent of those engaged in cultivation are able to access credit from banks or cooperatives. As such, there is a need to provide investment support to farmers on the lines of Chhattisgarh and Telangana, where the state governments extend Rs 10,000 a year and Rs 5,000 a season to the cultivators” said Sundara Vimalanathan, a farmers' leader in the Cauvery Delta.

Giving an impetus to organic farming is the demand of the Bharatiya Kissan Sangh. “The importance of organic produce is more felt in the pandemic times. But, only 5-7 percent cultivators are engaged in organic farming. The government should give incentives to promote organic farming on a large scale. Further, the present cumbersome process of obtaining the certificate of small and marginal farmers has to be simplified,” said N Veera Sekaran of the BKS.

There are demands to arrest the shrinking area under sugar cane with pro-active measures and increase the cultivable area under horticulture and spices, which earn good foreign exchange. The long wish list includes a guarantee on crop insurance for all farmers, removing agriculture produce from the ambit of GST, prioritising solar power with subsidy, creating a new post of Village Agriculture Officer in all panchayats, fertiliser stores in all taluks, uninterrupted power supply.

Having kindled high hopes, it remains to be seen what is in store in the Agri Budget. Though it may not be a panacea for the ills crippling the sector, it is an acknowledgment that the state has started addressing the poor farmer.

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