Kolkata (West Bengal): With Lok Sabha elections round the corner, Union Budget 2024-25 is expected to give more focus on the agriculture sector to leverage the rural vote bank and increase credit allocation to the sector. Industry stalwarts say that the key to advancing the agriculture sector lies in government initiatives that incentivise cutting-edge technologies, encompassing sustainable and precision farming, AI-driven analytics, and smart irrigation systems.
In the 2019 interim Budget ahead of the 2019 general elections, the government had announced 'PM-Kisan Samman Nidhi', under which up to Rs 6,000 financial assistance is provided to small farmers annually. 2024 being an election year, the government is expected to increase the agricultural credit target to Rs 22-25 lakh crore so that every eligible farmer has access to institutional credit.
In the current fiscal, about 82 per cent of the agri-credit target of Rs 20 lakh has been achieved till December 2023. Amith Agarwal, Co-founder and Director of Staragri said, "I have two key expectations from this year's budget. Firstly, implementing a special incentive tax break or a tax holiday for agritech start-ups for 10-15 years would stimulate the entry of technology-driven players into addressing India's agricultural challenges. This measure is poised to foster innovation and progress in the agri-tech sector."
And secondly, Agarwal feels that similar to the allocation for urban infrastructure projects, the government should channel capital expenditure towards fortifying rural and farm infrastructure.
The provision of low-cost funds for constructing modern warehouses, essential for storing grains and commodities, is crucial given the capital-intensive nature of this business. The budget should explore innovative measures such as tax breaks and attractive depreciation rates to incentivise further investments in building a farm infrastructure comparable to the best in the world.
The industry looks to the government to cultivate an environment to bring in the research-based latest technology products for crop protection and nutrition within the reach of even small and marginal farmers.
The introduction of new government schemes to fortify support for farmers takes center stage, with financial and infrastructural support envisioned as catalysts for positive transformations. The initiation of a Crop Diversification Programme is poised to enhance agriculture's resilience, impacting the market for agricultural inputs due to the diverse challenges posed by different crops. Finally, the successful implementation of the PM-AASHA initiative is considered pivotal in stabilizing farmers' incomes and setting the stage for a sustainable and technologically advanced farming landscape, feels Rajesh Aggarwal, Managing Director, Insecticides India Ltd.
Added Amit Sinha - Co-Founder - Unnati, "Our hope lies in a budget that prioritises key aspects such as setting competitive minimum support price (MSP) for specific crops and promoting self-reliance in domestically manufactured fertilizers."
"We look forward to the government's strategic emphasis on promoting climate-friendly products, aligning with sustainability goals. Furthermore, a thoughtful subsidy structure for fertilizers can incentivice farmers towards economically and environmentally responsible practices," explained Sinha.
The industry expects the exemption of GST on biofertilisers and biopesticides, fostering affordability and accessibility for farmers. This step would catalyse the adoption of eco-friendly agricultural practices, promoting a harmonious balance between productivity and environmental stewardship.
