New Delhi | Jagran Business Desk: With Indian economy estimated to grow above 9 per cent rate in 2021-22, Finance Minister Nirmala Sitharaman is likely to be at an advantage to announce spendings aiming to push the growth. However, as Sitharaman had claimed in her 2021 General Budget speech, the farm laws were supposed to be the pillar of growth-based reforms in the agriculture sector. With the three farm law repealed, the government is likely to announce other alternatives to improve the situational aspects of farming across India.
Continuation of Rashtriya Kisan Vikas Yojana (RKVY)
The government is likely to continue its ambitious Rashtriya Kisan Vikas Yojana (RKVY) for improved productions of pulses and oilseeds.
Agri credit target may be hiked to Rs 18 Lakh crore
The Agri Credit target may be hiked from Rs 16.5 Lakh crore to Rs 18 Lakh Crore. Institutional credit will also help delink farmers from non-institutional sources where they are compelled to borrow at high rates of interest, news agency PTI quoted its sources as saying.
Normally, farm loans attract an interest rate of nine per cent. However, the government has been providing interest subvention to make available short-term crop loans at an affordable rate and help boost farm output. This is likely to be continued in the upcoming budget as well.
Crop diversification to be a major focus
According to a National Statistical Office report of September 2021, per Hectare earning of farmers in Bihar was more than their counterparts in Haryana. Farmers in Punjab appear to be earning even less than the national average. Continuing with rice-wheat may yield assured returns, but farming in many parts of the country is an expensive affair amid depleting water table and deteriorating soil quality. Experts say that crop diversification is one of the biggest ways out. The government is likely to introduce more subsidies to stoke crop diversification practices across India.
Posted By: Mukul Sharma