Under the budgetary provisions, the interest subvention scheme for providing short-term crops loans to farmers at 7 per cent interest per annum will be continued. An additional subvention of 3 per cent will be available to prompt paying farmers. In addition, the same interest subvention on post harvest loans up to six months against negotiable warehouse receipt will also be done. The minister justified that this move will encourage farmers to keep their produce in warehouses.
“The enhancement to Rs 5.75 lakh crores is misleading. It is not for farmers alone. Most of the credit is siphoned off by corporate houses, PSUs and individuals,” says Jakhar. Increase in budget of agriculture ministry by 18 per cent is also not extraordinary, he adds. “Increase in allocation for Rashtriya Krishi Vigyan Yojna (RKVY) is impressive but the scope of RKVY has increased and the fund does not offset this. It is worrisome that the Achilles heel of India—60 per cent of India—is dependent on rain-fed agriculture and it is not prioritised,” Jakhar notes.
He adds that there is a continued focus on dispensing subsidies which are just expenditures instead of investment for India’s long-term growth. “There is no new incentive for input optimisation like fertigation (soluble fertilizers) and enhanced drip irrigation. The budget can only do so much for the farmers as agriculture is a state subject. Without accompanying agriculture reforms, policy changes and liberalisation of the agriculture sector the budget will remain just numbers, figures and a disappointment,” Jakhar says.
Dharmendar Singh, Bhartiya Kisan Union spokesperson from Uttar Pradesh, says, “The money which has been allocated for the various government schemes like RKVY, Green Revolution is just for seed industry and other agriculture input industry. A farmer gets nothing from these schemes. Even Green Revolution about which the finance minister is talking about promotes hybrid rice.”
Ram Kaundinya, chairman, ABLE-AG (Association of Biotech Led Enterprises–Agriculture Group) says that the efforts of the government are growth-oriented and forward looking and if implemented well, can help seed a much-needed farmer-led ‘inclusive growth’ for our nation. However, post the massive support extended by the Prime Minister on wider adoption of biotechnology in agriculture, there were expectations of some proactive steps aimed at far greater budgetary allocation and policy interventions for the sector, he adds.