Agri business requires coverage reforms to spice up sustainability and rural progress – Firstpost

Because the Union Finance Minister Nirmala Sitharaman is all set to current her eighth finances on February 1, specialists and business leaders known as for complete reforms to deal with longstanding challenges in agriculture and guarantee sustainable practices.

The agriculture business is hopeful that the federal government will announce measures within the Union Finances 2025 to spice up rural infrastructure, strengthen crop insurance coverage and introduce incentives for key crops to spice up farmers’ incomes.

Rajesh Aggarwal, Managing Director of Pesticides (India) Ltd, highlights the significance of agri-tech innovation and rural infrastructure. He emphasises the necessity to incentivise eco-friendly analysis and broaden farmers’ entry to crop safety options and digital instruments which might enhance yields and guarantee meals safety.

Maninder Singh Nayyar, CEO and Founding father of CEF Group requires a transition to pure and sustainable farming practices. He proposes insurance policies to encourage natural farming, assist city agriculture and provide training and coaching for farmers.

Nayyar additionally advocated for allocating devoted budgetary sources for farmers’ training and skilling will probably be pivotal in equipping them with the data and instruments essential for sustainable agriculture. “Constructing sensible villages—moderately than focusing solely on sensible cities—can foster a extra inclusive rural growth mannequin, integrating know-how, sustainability and a powerful sense of group,” stated Mr Nayyar.

“This finances has the potential to function a turning level in aligning India’s agricultural practices with long-term sustainability objectives, whereas additionally nurturing rural ecosystems that contribute to the nation’s broader progress and prosperity,” he stated.

S.Okay. Chaudhary, Chairman of Safex Chemical compounds attracts consideration to the monetary disparity between farmers and shoppers, suggesting the institution of a board for farm produce below a Nationwide Cooperative Coverage. He additionally stresses the necessity to enhance agricultural R&D funding to a minimum of 1% of the agricultural GDP, up from the present lower than 0.5% as this may increase crop productiveness.

“On the monetary entrance, the annual PM-KISAN installment might be doubled to ₹12,000 from the present ₹6,000. Small and marginal farmers is also provided free crop insurance coverage below the Pradhan Mantri Fasal Bima Yojana. The federal government ought to rationalise GST charges on pesticides, seeds, fertilisers and farm gear, bringing all 4 into the identical slab. Additionally, tax incentives might be launched for biofuel investments, creating demand for ethanol and boosting returns for farmers,” he stated.

Ramakrishnan M, Managing Director of Primus Companions requires enhanced assist for climate-resilient agriculture, digital infrastructure by way of Agristack, and elevated funding in fisheries and aquaculture below the Pradhan Mantri Matsya Sampada Yojana.

Throughout a digital overview assembly forward of the finances, Agriculture Minister Shivaraj Singh Chouhan, introduced the federal government’s six-point technique to strengthen the farm sector. This contains boosting per-hectare manufacturing by way of ICAR-led analysis and introducing new seed varieties.

The federal government’s technique focuses on lowering manufacturing prices, selling micro-irrigation, advancing farm mechanisation, adopting new applied sciences, and implementing revolutionary agricultural strategies.

Progress has additionally been highlighted in flagship schemes equivalent to PM-KISAN, Pradhan Mantri Fasal Bima Yojana, the DAP fertiliser subsidy, the Kisan Credit score Card initiative, and Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PMAASA).

For 2024-25, the federal government allotted ₹65,529 crore to agricultural schemes, excluding PM-KISAN. Since 2019-20, the agriculture finances has grown at a CAGR of 5.4%, with non-PM-KISAN spending rising by 6.5% yearly.