Agriculture and Related Industries:
Reforms regarding FDI, Ambitious food security bill and need of complacency in food grain these factors will help to boost this year’s budget expenditure on Agriculture sector. But this is very tough for the government to increase expenditure as main focus in 12th five year plan is infrastructure and budget is likely to see a squeeze this year as given the resource constraints, deficit of around 5.5% and threats that India’s sovereign ratings could be downgraded to ‘junk’. FDI reforms will attract MNC’s in India therefore we need to be ready with more growth in Agricultural production. These MNC will remove the middleman and will try to buy direct from farmers. Therefore small farmers will get better price for their crop. Government minimum support price scheme will make sure that MNCs do not exploit the farmer. This will help to increase the growth in agriculture industry. To increase the growth rate of agricultural production we need more money in terms of credit, government expenditure and subsidies. This year we have seen average growth in Agriculture production is around 3% which should be 5% for the current year to ensure food security of the country. Agriculture sector is expecting Rs. 28,000 crore government expenditure in this budget compare to 20,000 crore last year which was 18% of the total budget. R&D expenditure is also expected to rise from last year allocation of 300 crore to 500 crore to boost the R&D in the field of seeds and other equipments. . Landings in agriculture sector
The outlay for farm sector programmes, such as Rashtriya Krishi Vikas Yojna, National Mission on Agriculture Extension, National Mission on Seeds and Planting Material, National Mission on Agricultural Mechanisation, National Mission on Oilseeds and Oil Palm, National Mission for Sustainable Agriculture, and National Mission for Protein Supplements and the Accelerated Fodder Development Programme, should be increased to cover...
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