The upcoming Budget ought to enunciate agricultural techniques that market new-age technologies, encourages information-driven options for intelligent farming and industry connect, empower Farmer producer organisations (FPOs) and enables investment in study and improvement (R&D). Such a 4-pronged method will lessen input charges for farmers and reduce down wastages, thereby assistance in reaching the dual target of raising incomes for smallholder farmers and strengthening the sector’s competitiveness.
As compared to created economies, study & improvement (R&D) investment in agriculture in India is minuscule at about .3% of agricultural GDP. It is critical to invest a substantial aspect of the GDP in R&D to address emerging challenges of climate modify, meals and nutrition safety, stagnating yields and galloping expense of inputs and wastages.
Secondly, the want of the hour is an investment in technologies which are productive, user friendly and ones that bring customised options to requirements of medium and little landholding farmers. To make certain technologies-led development for agriculture, the Budget ought to stimulate investment in new-age technologies that enhance farm economics by lowering the expense of production and wastages at pre and post-harvest stages. Promoting farm mechanisation technologies with an productive farmer to farmer rental models will act as a catalyst to enhance agricultural yield. Lending to rent to the BPL smallholder farmers will improve mechanisation which is presently unavailable for this marginal segment. Precision technologies will assistance in creating more with lesser input and will progressively lead to much less consumption of farm energy, seed, fertilisers and pesticides. Technological innovations for soil and water conservation are important, as practically 90% of freshwater withdrawn in India is utilized for agricultural objective and reduce in soil organic matter leads to low and stagnating yields. Restoration of soil overall health and sustainable water use management definitely needs conscious interest.
Enhancing the use of ICT and digital technologies will provide genuine-time industry information and facts and extension services to farmers. Constant application of technologies that develop options for meals monitoring, high quality assaying and traceability will also be equally critical, as post covid meals security becomes more critical than ever just before. India requirements an autonomous Agri Technology Governing Council comprising of public and private participation and a policy push to develop conducive Agri startup ecosystem in the nation. It is also critical to make linkages with Agri universities at the state level to develop partnership projects at grass-root level.
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Thirdly, Government ought to have a specific concentrate on strengthening Agri statistics to lessen information and facts arbitrage on information for sowing, crop situation, costs and other very important parameters. Today, 85% of farmers in nation are little and marginal. Use of Agri-stack constructed on a foundation of farmers database can bring immediate access of disruptive innovations at their doorstep and will lead to intelligence driven selection generating.
Fourthly, new, revolutionary models of consolidation are crucial, thinking about that expense per unit with little land holdings is higher and production output is rather low. Therefore, a sustainable aggregation model like creation of FPOs is a viable option. FPOs have a massive part to play in not only constructing socio-financial resilience of farmers but also in reaching a number of sustainable improvement targets. It is recommended that FPOs ought to be integrated in definition of MSMEs. This will open new avenues of help for FPOs, assistance them in raising capital for business enterprise operations and avail other advantages that are obtainable to MSMEs.
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Also, adoption of scientific storage technologies will additional strengthen FPOs. Presently, the complete possible of warehousing technique and negotiable warehouse receipts in electronic kind (e-NWR) is unrealised. Strengthening the warehouse technique in nation will allow farmers and FPOs to retailer their generate following harvest and assists protect against distress sale. The part of a warehouse in future is going to be more than plain storage. Creating new capacities with technological characteristics and revolutionary functional dimensions in Agri warehousing is critical.
It has been heartening to note Government’s try to modify the crisis into an chance by taking a step towards the lengthy-pending reforms in the agriculture sector. Going forward, adoption of technologies at many levels of the chain and creation of Agri Council in line with GST Council for an integrated method involving Centre, State and all concerned ministries will be useful.
It is anticipated that in Union Budget 2021-22, the government will continue to show a sturdy commitment towards generating Indian agriculture more competitive.