Budget 2020: Sitharaman lists 16 points to boost farmer income

Finanace Minister Nirmala Sithraman on Saturday presented the Budget 2020 in the Lok Sabha. In her budget speech, Sitharaman said that the government is committed to doubling farmers' income by 2022. She lists 16 action points for farmers' welfare. She said, “We have provided for 11 crore farmers through PM Kisan Beema Yojana. Provision of annual assistance to the farmer is made sure through PM Kisan yojana. Agricultural markets need to be opened and liberalised. Fisheries, animal husbandry and dairy needs to be provided for."

She said that the Modi Government has announced that it will incentive farmers to use solar energy to fulfil their needs for electricity. "Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) to be expanded to provide 20 lakh farmers in setting up standalone solar pumps."

The Finance Minister presented 16 points on govt's initiative and focus on farmers and agriculture: 

1. Encourage states to take up model agricultural laws.
2. Comprehensive measures for 100 water stressed districts.
3. PM Kusum scheme removes dependence on kerosene and encourages use of solar power.
4. Our govt will encourage balanced use of fertilisers. This is an important step because currently use of chemical  fertilisers is incentivesed.
5. NABARD will take up an exercise of mapping and geo tagging agricultural warehouses, cold storage and other inventory storages.
6. A village storage scheme is proposed to be managed by SHEs. This will help farmers store more and reduce logistics costs. Women in the village will be responsible for managing this seamless storage mechanism.
7. Krishi UDAAN scheme will be launched by Aviation Ministry.
8. Horticulture sector with its current produce exceeds the production of food grains. We will now take it to, One Product One District.
9. Financing of negotiable warehousing receipts will be integrating other e-services.
10. Agricultural credit availability for 2021 has been set at 15 lakh crore.
11. Our govt aims to eliminate the foot and mouth disease in sheep and goat by 2025
12. Doubling of milk production of 53.5 million metric tonne of milk to 103 metric million tonne by 2025.
13. Our govt will involve youth in fishery sector. We hope the rural youth will work as Sagar Mitras and also form Fish Farmer Organisation
14. Under Antodyaya scheme, SHEs will bw further taken forward and made stronger.
15. Rs 2.83 lakh crore to be allocated  for agriculture.
16. Rs 1.23 lakh crore to be allocated for rural development and panchayati raj.

Budget 2020: Comprehensive LIVE Coverage

To achieve the target of doubling farmers' income by 2022, the Economic Survey yesterday said there is an urgent need to address some of the basic challenges like credit, insurance coverage and irrigation facilities in the agriculture and its allied sectors.

There is also a need to reallocate labour resources to other sectors, give increased focus on exploring global markets for agricultural commodities besides supplementing efforts of farmers with direct income support.

"The realisation of the objective of doubling farmers' income necessitates addressal of some of the basic challenges of agriculture and allied sector," according to the Economic Survey 2019-20 tabled in Parliament.

Issues such as investment in agriculture, water conservation, improved yields through better farming practices, access to market, availability of institutional credit, increasing the linkages between agricultural and non-agricultural sectors need urgent attention, it said.

According to the Survey, the coverage of irrigation facilities needs to be extended while ensuring an effective water conservation mechanism.

An inclusive approach to provision for agricultural credit has to be undertaken to address the issue of skewness in its regional distribution, it said.

The Survey further said allied sectors, such as animal husbandry, dairying and fisheries, need to be given a boost to provide an assured secondary source of employment and income, especially for small and marginal farmers.

Given the fact that the livestock sector has grown at a compound annual growth rate of nearly 8 per cent over the past five years, it assumes an important role in income, employment and nutritional security, it said.

"Livestock income has become an important secondary source of income for millions of rural families and has assumed as important role in achieving the goal of doubling farmers' income," the Survey added.

Noting that farm mechanisation helps the Indian farming transform into commercial from subsistence farming, the Survey said there is also a need to address the issue of lower farm mechanisation in India which is only about 40 per cent as compared to about 60 per cent in China and around 75 per cent in Brazil.

As a well-developed food processing sector ensures better return to the farmers and promotes employment, the Survey said "more focussed attention" is required to be given to the sector to its significant role in reducing post-harvest losses and creation of additional market for farm outputs.

There is also a need to reallocate labour resources to other sectors. Though the structural transformations involved a falling share of the agriculture sector and rising share of services sector jobs, more needs to be done to create manufacturing jobs to absorb the large pool of workers, it said.

Stating that agriculture and its allied sectors still remain an important sector, the Survey said it is because of its continued role in employment, income and most importantly in national food security.

Their contribution to national income has gradually declined from 18.2 per cent in 2014-15 to 16.5 per cent in 2019-20, reflecting the development process and the structural transformation taking place in the economy.

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