Kurukshetra Union Budget 2019-20

Kurukshetra Union Budget 2019-20, Rural Development and the Interim Budget 2019.

In terms of budgetary allocation for agriculture, there has been an increase of 80% in 2019-20 over 2018-19.

Over the years, several new challenges have emerged before the agricultural sector especially, declining factor productivity, an increase in the cost of cultivation and a decrease in the net returns per unit area.

• The agriculture sector in India goes through cyclical Movement in terms of its growth. The average annual growth rate in real terms in agriculture and allied sector has remained at around 2.88% during 2014-15 to 2018-19.
• Study of Gross capital formation in agriculture and allied sectors shows that the share of public investment in agriculture has increased while the share of private investment has declined during 2014-15 to 2016-17.

For a safe and food secure future the agriculture landscape has to undergo a tremendous transformation and shift from the philosophy of ‘Green revolution led’ productivity to ‘Green methods led’ sustainability in Indian agriculture.

• Increasing sustainability in agriculture – In the revised guidelines of Paramparagat Krishi Vikas Yojana during the year 2018, various organic farming models like natural farming, Vedic farming, Homa farming, zero budget natural farming have been included wherein flexibility to adopt any model of organic farming lies on the states depending on the farmer’s choice.
• Adopting appropriate Technologies for smallholder farm – The custom hiring centers are set up to promote the use of high tech machinery for the mechanization of small and marginal farmer holdings especially in difficult terrains.
• Animal husbandry and Dairying – India ranks first in milk production, accounting for 20% of world production. But there exists a wide inter-state variability in milk production. All India per capita availability of milk is 375 grams per day it varies between 71 grams per day in Assam to 1120 grams per day in Punjab.
  • Rashtriya Kamdhenu Aayog has been proposed to set up to upscale sustainable genetic up-gradation of cow resources and to enhance production and productivity of cows.
• Fisheries sector – India is the second-largest fish producer in the world with a total production of 13.7 million metric tonnes in 2018-19 of which 65% is from inland sector. Almost 50% of Inland fish production is from culture fisheries. Fish and fish product exports emerged as the largest group in agricultural exports.
  • A separate Department of fisheries was created in February 2019.
  • The government has merged all the schemes of the fisheries sector into an umbrella scheme of Blue Revolution: Integrated Development and Management of Fisheries.
  • Fisheries and aquaculture infrastructure development fund has been approved.
  • Pradhan Mantri Matsya Sampada Yojana – to stablish a robust fisheries management framework by addressing critical gaps in the value chain.
• MSP and food grains procurement – MSP is announced to give guaranteed prices and assured market to the farmers and protects them from price fluctuations.
  • Initiative like SFURTI & ASPIRE have been launched to give a boost to the traditional industries and improve the technology of such Industries.
• Formation of 10,000 new Farmer Producer Organisations (FPOs) to ensure economies of sale for farmers over the next 5 years.
• Agricultural credit – If credit is not available to purchase seeds at the time of sowing or if lack of credit delays the administering of fertilizers it can severely impact agricultural productivity.
  • Interest subvention of 2% per annum to lending institutions on use of their own resources has been offered.
  • An additional interest subvention of 3% per annum to such of those farmers repaying in time.

To attain sustainable development goals (SDGs) of ending poverty and bringing in inclusive growth, activities related to agriculture need to be closely integrated with the SDG targets.