Finance Minister Nirmala Sitharaman Meets Farmers and Experts for Budget Talks
New Delhi, June 21: Agriculture economists and representatives of farmer associations met with Union Minister for Finance and Corporate Affairs Nirmala Sitharaman in New Delhi to discuss the upcoming budget. The meeting aimed to address challenges and opportunities in the agriculture sector.
Key Issues Discussed
Badri Narain Chaudhary, President of Bhartiya Kisan Sangh (BKS), emphasized the need for substantial budget allocations for agriculture. He highlighted sustainable farming practices, financial well-being of farmers, and measures to enhance productivity and profitability.
Chaudhary also stressed the importance of reviewing current budgetary allocations due to climate change. He proposed increased investment in irrigation infrastructure and interlinking rivers to combat erratic rainfall. Additionally, he called for a better implementation of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) and a Direct Benefit Transfer (DBT) system for fair financial assistance to all farmers.
GST and Export Concerns
Chaudhary pointed out the lack of input tax credit for farmers under GST and suggested either providing this credit or exempting agricultural inputs from GST. MJ Khan, Chairman of the Indian Chambers of Food and Agriculture, noted the slow growth of the agriculture sector compared to the overall economy. He recommended adopting good agricultural practices, improving the subsidy system, expanding irrigation, and using digital technology.
Khan also urged the government to stop frequent bans on agricultural exports, which have reduced India’s share in global agricultural exports. He suggested lifting these bans to create an export hub.
Climate-Resilient Agriculture
Ashok Gulati, Agricultural Economist and Professor at ICRIER, emphasized the need for climate-resilient agriculture and better research practices. He proposed combining all subsidies and directly transferring them to farmers’ accounts, similar to practices in China.
Additional Proposals
BKS called for increased budget allocations to enhance the capacities of Krishi Vigyan Kendras (KVKs) for improving and distributing indigenous seeds. They also revisited the 2018-19 budget allocation for rural market development, suggesting increased funding to boost the rural economy.
Incentives for adopting green energy solutions like solar power for farming operations were also discussed. Additionally, BKS proposed increasing the credit limit under the Kisan Credit Card (KCC) scheme and allowing KCCs to serve as licenses for primary food processing.
