What is expected for Agriculture sector in Budget 2022-23

Indian agriculture is going through a transitional phase, from production oriented to market oriented; from a localised production system to regional, national and globally integrated production system; from physical interventions to online interventions (extension, advisory and marketing). One more aspect, which has been brought to fore in recent years is, from purely exploitative production approach to ecologically sustainable production approach.

Although, the private sector and now the Agri-startups are trying their best to modernise Indian agriculture, Government interventions and policies will remain most influential factors in setting the direction of growth of the sector. With this, some of the ideas to be considered in Budget 2022-23 can be as under –

-?????????A special policy thrust on agri & food startups ecosystem is needed, not only to boost the investment in the sector but also to bring innovation, experimentation and to scale-up.

This policy thrust can have multiple interventions, including access to data, possible partnership with the public sector projects and programmes, non-conventional provisions for financial assistance, access to scientific and technical knowledge (partnerships with research institutions and Universities) etc.

-?????????Investment in marketing infrastructure and logistics with special focus on backward areas.

At pan-India level, there are wide differences in access to market and logistics infrastructure to farmers in various states. Access to modern marketing infrastructure enabling marketing linkages can be the driver of adoption of new crops and increase in productivity levels. Government can think of creating special marketing infrastructure scheme for some of the identified states (based on comparative assessment of availability of infrastructure per acre of farm or per square Km of area).

-?????????Revival and modernisation of existing research and extension system.

India has one of the world’s largest agriculture research and extension system (in physical terms atleast), however, there has always been many questions on real contribution of this mammoth set-up in progress of agriculture (at least in recent decades). There is need for reviving this infrastructure to contribute positively and to align and keep pace with change in agroecosystem. Also, the research and development efforts shall be futuristic in nature, leading the change instead of following the trends. One example of thrust can be current physical extension system by KVKs are adopting to world class digital extension system for reaching to mass.

-?????????Creating large collectives with muscle power to compete globally.

Government has been thrusting on forming collectives in large number across country. However, how many of these collectives are going to remain in business after a few years is a big question. Therefore, government shall pivot its strategy from creating large number of collectives to strengthening the collectives (FPOs / FPCs / Cooperatives) for making them competitive in global marketplace. This may need special schemes for technology, infrastructure, and capital / financial support to these collectives in innovative ways.

-?????????Continuation of thrust on value addition and food processing sector.

In addition to financial support for setting-up food processing infrastructure, the policy and financial support is also needed in product development, market establishment and innovations.

-?????????Developing global markets.

Although, there is thrust on promoting agricultural export from India, however, government now may think of diversion in the strategy, wherein marketing push shall be supported for Indian products (commodities, varieties). This may need government support to exporters for establishing products in newer markets, create awareness of new products, assistance in setting-up supply chains / distribution of Indian products in global markets. This may need extra efforts of penetrating market and reaching to end consumers, finding space on retail shelves; not only in trade fairs. ?

Certainly, there can be many more areas for interventions and addition to this list is welcome…