Wednesday, June 26, 2019

Budget 2019 agriculture wishlist: Increase farmer income, investment in R&D


Irrigation, doubling farmers' income, agricultural finance, R&D are some of the key points the government needs to focus on.


Key challenges
Doubling farmers’ income: In the past, focused efforts in agriculture has been around increasing yield, mechanisation, reducing post-harvest losses, etc., that are indirectly linked to farmer remuneration. However, there is still a huge gap in the optimum price realisation by farmers.

Agricultural finance: Access to finance forms is an integral part for the overall value chain performance in agriculture. While Kisan Credit Card provides sufficient credit options and benefits, efficient implementation still remains a challenge.

Irrigation: Over 50% of our agriculture is still rain fed, hence, there is an associated uncertainty leading to reduction in growth. There is thus a need to increase the coverage of irrigation. It is estimated that a total of 27 million hectares area has the potential of drip irrigation application, showcasing a huge potential to reach out to more farmers.

Research and development in agriculture: Considering India's dependency on agriculture, it is highly imperative to invest in R&D. India spends 0.30% of agricultural GDP on agricultural research. Besides, private sector participation in the sector is relatively lower.

Market linkages and integration: The farmers need be better connected to the end consumer. The number of stakeholders across the agricultural value chain need to be reduced.

Agricultural infrastructure: There is still a lack of sufficient supporting infrastructure at various value chain stages creating lacunae such as lack of adequate primary processing centers, cold chain, warehouses leading to an increase in post-harvest losses and distress selling at times.

Technology and innovation: There’s a need to integrate technology and innovation closely in the agriculture sector. Global trends such as drone technology, block chain, FinTech, traceability need to be strengthened in Indian context.

Business Standard

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