Budget 2021: What would it have for the agriculture sector?

The Economic Survey showed that the agriculture sector supported the economy while other major sectors were at a near standstill during the coronavirus-induced lockdown.

Amid the protests by farmers against the three contentious laws that they claim help the big corporate houses, Union finance minister Nirmala Sitharaman faces an enormous challenge of filling the trust deficit between the agriculturists and the government. The farmers have been protesting on the borders of the national capital against the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020, and the Essential Commodities (Amendment) Act, 2020. While the government has refused to repeal these laws, measures announced in the budget could help change the dynamic between the farmers and the government.

Farmers protest against farm laws at Singhu Border in New Delhi, (ANI Photo)

Meanwhile, the Economic Survey showed that the agriculture sector supported the economy while other major sectors were at a near standstill during the coronavirus-induced lockdown. Even the first advance estimates released by the government show that the farm sector is likely to grow at 3.4 per cent in the current fiscal year.

Here are some reforms that could be a part of the Union Budget 2021:

1. As the government aims to double the income of the farmers by 2022, Prime Minister Kisan Samman Nidhi Yojana under which farmers get ₹6000 in three equal instalments during a financial year could be expanded.

2. As the government aims to increase the income of farmers, the prime focus will also be on the infrastructure development and allocation of funds for the same. Allocations for schemes like national food security mission and PM Krishi Sinchayee Yojana are also expected to increase in the Union Budget 2021.

3. Providing more money to rural populations will also automatically lift up agriculture and allied sectors and other than PM-Kisan another scheme that could help in this would be the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), which was also a major employment option during the pandemic due to limited job opportunities outside the agricultural sector. Increased allocation in MNREGA is expected to be announced in the Union Budget.

4. Finance minister Sitharaman could also announce schemes to promote natural as well as organic farming which has already gained speed in the past few years.