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Budget 2021: Govt ought to present extra funds, incentives for agri sector, say specialists

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Image Source : PTI Budget 2021: Govt ought to present extra funds, incentives for agri sector, say specialists
The authorities ought to present extra funds in addition to incentives within the upcoming Budget to advertise indigenous farm analysis, oilseeds manufacturing, meals processing and natural farming for the general progress of the agriculture sector, in accordance with business specialists.

The direct profit switch (DBT) scheme needs to be utilised extra to assist farmers as a substitute of giving subsidies, they added.

“Food processing industry has played an important role in better price realisation for the farmer and reducing the cost of intermediaries. The budget must provide special incentives to food processing through incentives such as interest subvention, lower taxes, access to technology and so on,” DCM Shriram Chairman and Senior MD Ajay Shriram mentioned.

Referring to the profitable PM-KISAN scheme below which Rs 6,000 is paid yearly instantly into farmers financial institution accounts, he mentioned the DBT mechanism needs to be fine-tuned and step by step needs to be utilized to assist farmers in lieu of different subsidies.

“Let the farmer decide how to judicially use the money. With the benefit of DBT, farmers can then buy better seed, use new-age fertilizers, optimize water usage and so on,” Shriram mentioned.

Stating that many Indian startups have invested within the agri-technology area, he advocated for a coverage that encourages progress of those corporations and adoption of newest strategies.

He mentioned there has not been any vital breakthrough in recent times from indigenous agricultural analysis and improvement (R&D) and this may very well be partly on account of useful resource crunch.

“Two areas that need immediate attention are firstly linking agricultural research with industry requirements and secondly avoiding ideological resistance to new-age technologies such GM crops,” Shriram mentioned.

Consulting agency Deloitte India urged that extra funds needs to be allotted for analysis and improvement in addition to for rising the home manufacturing of oilseeds to scale back imports of cooking oils.

Stating that livestock farming is among the key pillars for augmenting farmers’ revenue, the consulting agency mentioned one of many huge impediments for improvement of this sector is the prevalence of varied ailments that have an effect on mortality, productiveness, and total manufacturing.

“Supply of vaccines is not adequate to address the increasing demand. Funding for developing vaccines and creating necessary infrastructure would be required in this budget,” Deloitte mentioned.
Chirag Arora, Founder, Organisch Overseas, mentioned the federal government should encourage farmers to undertake natural farming.

“The need of the hour is to encourage the private sector into the space by offering tax incentives to startups venturing into this domain. It also needs to augment investment on creation of cold-chains and increase storage capabilities,” Arora mentioned.

Last month, in a digital pre-budget session with the finance ministry, Bharat Krishak Samaj (BKS) had mentioned that the federal government ought to incentivise balanced use of fertilisers by rising urea value and decreasing charges of phosphatic and potassic (P&Ok) vitamins within the upcoming Budget.

BKS Chairman Ajay Vir Jakhar had additionally sought discount in taxes on diesel and transport subsidy on vegatables and fruits, however demanded tax on unhealthy meals. He had pitched for tripling funding for micro-irrigation and photo voltaic pumps for particular person farmers in addition to funding for distribution of soil moisture measuring sensors.

“Prioritize investment in human resources over infrastructure. There are about 50 per cent vacancies in agriculture research institutions across India. Target 2 per cent expenditure on agri R&D of agriculture GDP over the next few years,” BKS had mentioned.
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