STEPS FOR DOUBLING FARMERS INCOME

 Why it is important to take reforms in Agriculture sector?

• Agriculture and allied activities are thrust areas in central financing as more than 50 percent of our population depends on agriculture for their livelihood.
• In addition, the fortunes of industrial sector as well as service sector are intricately linked with output and growth of this sector.

What are the steps announced in this budget to double farmer's income?

Irrigation Sector :

• The union budget 2018 - 19 has given foremost importance to the irrigation scheme PMKSY, which has the objective to achieve convergence of investments in irrigation at the field level, expand cultivable area under assured irrigation (Har Khet ko pani), improve on-farm water use efficiency to reduce wastage of water, enhance the adoption of precision-irrigation and other water saving technologies (More crop per drop).
• The GOI has initiated 99 projects under mission mode where as the works for identified 48 projects will remain in progress with left over works of other projects from previous phase.
• With the objectives of 1.86 lakh Ha of additional area to be brought under irrigation during 2018-19, PMKSY-Watershed Development has been provided Rs.,2145,00 crores.
• Recognizing the importance of micro irrigation in the contemporary agriculture, the government has provided Rs. 4000 crores for the water saving induced technology adaptation under " Per drop More Crop".

Minimum Support Price:

• MSP is a tool of intervention by GOI to ensure the farmers from any sharp fall in the market price of the commodity.
• Addressing the issue of the agrarian distress of farmers in India, the union budget has ensured MSP for all 23 crops with at least one and half times of their production cost plus the imputed value of the family labor at prevailing wage rate.
• Ensuring MSP is a significant and straight step in moving towards the goal of doubling farmers income.

Operation Green :

• Tomatoes, Onions, Potatoes are consumed throughout the year in the entire country. During the last 70 years, farmers and consumers have incurred losses.
• For the first time, a new initiative titled “Operation Green” has been taken so that farmers can get right price and products are also available to the consumers at suitable prices.
• For this purpose, a provision of Rs. 500 crores has been made.

Farmer producer organization:

• All FPOs which include farmer producer companies also have been exempted from income tax in the budget.
• Small and Marginal Farmers FPOs/FPCs will be benefitted through this initiative. On the other hand, the problem of small holdings and partition will also be addressed.

National Bamboo Mission:

• With a view to increase agriculture and non-agricultural activities, this budget proposes to reinvigorate National Bamboo Mission with a fund of Rs. 1290 crores.
• This will not only help in the establishment of small industries but will create new employments opportunities.

Agricultural Credit -

• Providing timely loan to the farmers is also very important. For this, agriculture credit which was Rs. 10 lakh crores during last year has been increased to Rs. 11 lakh crores this year.

Agricultural Marketing :

• In this budget, an announcement of Rs. 2000 crore for Agri Market Development Fund has been made which shows the importance of retail market in the sector of agriculture
  marketing.
• These markets have been called as GRAM (Gramin Retail Agriculture Market).
• Through these markets infrastructure of 22,000 Rural Haats and 585 AMC markets will be developed.

Food processing Sector :

• One of the most revolutionary initiatives announced in Budget 2018-19 to give impetus to the food processing sector is establishing Specialized Agro Processing Financial Institutions to unlock finance for establishing food processing industries.
• These institutions would help overcome the deterrents faced while installing food processing projects that are capital intensive and have long gestation period, by ensuring timely, accessible and affordable credit to this sector.

Fisheries and Aquaculture:

• By continuing the reforms made in the last 2 budgetary years, a provision of Rs. 10,000 crores has been made in this budget for Fisheries and Aquaculture Infrastructure Development Fund and Animal Husbandry Infrastructure Development Fund.
• Through this, State Governments, Cooperatives and individual investors will get loans at cheap rates for fisheries and animal husbandry infrastructure.
• This will help to speed the pace of construction of fish landing centers, cold storages, ice plants, transport facilities, processing units and hatcheries etc

By: VISHAL GOYAL