Though this was an interim Budget, the government has done a fine job and tabled a very holistic and fiscally prudent plan for the country.
In case of agricultural sector, a diligent thought process has also gone into the proposals. For instance, the success in fisheries is not being taken for granted, but paid special focus by the setting up of a Department of Fisheries. Credit support to farmers tended to ignore those involved in rearing, breeding and harvesting livestock. This has been addressed by extending 2 per cent interest subvention to farmers in animal husbandry and fisheries, both are part of new drivers in agriculture. To promote these areas, credit is used for commercial investment and growth, an additional interest subvention for timely repayment is a welcome change from previous move for a one-off loan waiver.
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Keeping in mind that farmers face high risk due to weather based disasters, wherein crop loans are rescheduled, an extension of 2 per cent interest is subvention for the entire rescheduled period, while incentivising for prompt repayment as a supportive move. All of this, encourage an enterprise mind-set while building risk management capacity of farmers. The enhanced allocation to PM Gram Sadak Yojna also ties in as improved rural roads network and will have positive impact on trade that originates from rural India. The overall focus is on promoting development and selfsufficiency in this sector. The income support to small and marginal land holding farmers, and to tax payers, will add impetus to the overall economy as well.
The budget went beyond its interim nature, by presenting a vision for India in 2030 and this vision must be welcomed. This vision includes an integrated approach for modernising agriculture, declaring cold-chain as a focus item, and lays out a clear agenda. This vision also speaks of building India as a 10-trillion-dollar economy, digitisation of villages, improved logistics infrastructure, artificial intelligence, rural industrialisation etc. All of this is envisaged, keeping our agrarian backdrop in mind. This means greater impetus for value-added activities like the organised aggregation of agricultural produce, agri-logistics and coldchain, and a more equitable growth across the country. Likewise, an improved farm-to-fork delivery system and a more transparent fork-to-farm value sharing system can be envisioned.
Pawanexh Kohli is Chief Executive Officer, National Centre for Cold-chain Development
Views expressed are personal.