Agri-food & agricultural sector: expectations of the 2022 budget | India is blooming

New Delhi/IBNS: The agriculture sector which is expected to contribute $1 trillion in India’s vision of becoming a $5 trillion economy by 2024-25 has again been thrust into the spotlight by the experts before the 2022 budget.

According to ONS estimates, the gross value added (GVA) percentile of agriculture increased from 17.6% in (2018-19) to 20.2% in 2020-21.

Recently, the Center announced a Production Linked Incentive Scheme (PLI) with an expenditure of Rs 10,900 crores applicable to (RTE/RTC Foods, Fruits & Vegetables, Seafood, Mozzarella Cheese) which is expected to improve the processing levels, said the Ministry of Food Industries (MOFPI).

On the other hand, troubling situations caused by technology and the requirement for sustainable agriculture are some areas where the government needs to lend a hand, according to the media.

The main budgetary expectations are as follows:

Increase in funding allocated to R&D

According to the Economic Survey, India’s R&D allocation has been between 0.3 and 0.5% over the past two decades.

Giving priority to improving productivity from limited agricultural resources, the Center could consider proliferating funding aimed at updating agricultural techniques, sustainable farming methods and research and development activities, according to an article by opinion in MoneyControl.

The R&D budget for 2020-21 was Rs 8,514 crore, which was lower than the US allocation of 2.8% of its budget and the Chinese allocation of 2.1%, according to media reports.

Increase in the PLI allowance for the introduction of other agricultural crops

PLI schemes in the food processing belt (which contributes around 12.8% of India’s GDP) amount to Rs 10,900 crore, MOFPI has informed.

This allocation is less compared to the automobile and pharmaceutical products which contribute less to the country’s GDP than the agricultural sector.

The increased spending will strengthen the sector and contribute to exports, domestic consumption and overall economic development, while creating a ripple effect on the agricultural inputs, agricultural equipment manufacturers, logistics and processing sectors. packaging, Soumyak Biswas and Anand Ramanathan said in a MoneyControl piece.

Sanction a national agricultural technology strategy

Technology has disrupted agricultural enterprises and their value chain, leading agri-tech companies to fill many gaps in the value chain that could help improve production, quality, and boost the efficiency of farming. value chain, they said.

Adoption of technologies and practices by farmers, which requires behavior change, awareness raising and capacity building, is essential, they added.

It is essential to have a coherent policy which must be developed in collaboration with various stakeholders to improve the penetration of agri-tech in India, according to an article by MoneyControl.

The increased budget allocation can also encourage farmers (especially small and marginal farmers) to adopt modern solutions that mitigate risk, he said.

Lana T. Arthur