PremiumDuring her ongoing US visit, Union Finance Minister Nirmala Sitharaman said India protected its farmers by providing its farmers with additional subsidies to ensure that they were not overburdened. She also informed that the next budget will focus on growth
During her ongoing visit to the USA, Union Finance Minister Nirmala Sitharaman said that India protected its farmers by providing them with additional subsidies to ensure that they were not overburdened amid the rising global price of inflation.
"It is not just the elevated prices of fertilizer and energy, but the availability of these commodities too are challenges," Sitharaman said while addressing a gathering at the Brookings Institute, USA.
During a fireside conversation with eminent economist Eshwar Prasad, the Union Finance Minister also brought up several issues and risks that are "extraneous" to the Indian economy. She also talked about how some parts of the world are facing acute food shortages mainly because of high fertiliser prices due to poor supply.
"Last year we had to give 10x the price to import. And obviously, Indian farmers are not really large farmers...But they really need fertilizers at an affordable price. So I can't raise the input costs by saying I am importing it at this price therefore it is yours to take the burden as well," Nirmala Sitharaman said adding that the central government had shelled out the additional on behalf of the farmers.
Later, she added that despite a rise in global prices, Indian farmers are paying the same price for fertilisers as they used to pay in 2018,2019 and 2020.
Moreover, to tide over the current headwinds, Sitharaman said the central government has ensured proper credit flow in the agriculture and business sector. Farmers and business persons have ample credit facilities, that too at an affordable rate to cater to their needs.
The government had also increased the budget allocation for fertiliser subsidy from ₹81,125 crore in FY20 to ₹215,222 crore (estimate) in the current financial year, reported ANI quoting the rating agency CareEdge.
Union Finance Minister also emphasized the need to bring the Indian economy out of the COVID-19 pandemic’s impact. That’s why the central government will focus on the growth and sustainable momentum of the Indian economy in its next budget.
While replying to a question on the priorities of the Narendra Modi government in the next Union Budget, Nirmala Sitharman informed that besides growth priority, inflation concerns will also be closely examined.
"Measures, specific may be difficult at this stage because it's a bit too early. But broadly, the growth priorities will be kept absolutely on the top, even as I speak about the concerns that inflation brings before me. So inflation concerns will have to be addressed. But then how would you manage growth would be the natural question," she said.
During her official visit to the USA, Nirmala Sitharaman will attend the Annual Meetings of the International Monetary Fund (IMF) and the World Bank, the G20 Finance Ministers, and the Central Bank Governor (FMCBG) Meetings. Her visit will last till 16 October. In addition to these meetings, Union Finance Minister will also participate in one-on-one meetings with leaders and heads of the OECD, the European Commission, and UNDP.
Along with taking part in meetings of international organisations, the Union Finance Minister will also attend bilateral meetings with several countries, including Japan, South Korea, Saudi Arabia, Australia, Bhutan, New Zealand, Egypt, Germany, Mauritius, UAE, Iran, and Netherlands.
(With inputs from ANI)