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.
