What Is the Impact of Budget 2021 on the Agricultural Sector of India?

This year’s Budget has certain provisions for the agricultural sector, which when implemented, will result in higher investments, diversification, and more income for the farmers. The primary feature of the Budget for this segment is the higher outlay and facilitating supportive and direct infrastructure.

The Budget was presented amidst never-seen-before circumstances when the global economy is still recovering from the COVID-19 pandemic. The Budget’s core objective is to improve the country’s economic health and the overall well-being of the citizens.

The pandemic and the resultant lockdown adversely impacted the entire economy, except for agriculture. Surprisingly, this sector has been the main driver of economic growth during this extraordinary situation.

During the last year, the government announced several measures through the Atma Nirbhar Bharat scheme. The agricultural sector was no exception. Multiple initiatives aimed at increasing farmers’ incomes, improving supply chains for essential commodities, and ensuring they got remunerative prices for their produce.

Budget 2021 promotes diversification to higher-value sectors like horticulture and dairy, which have gained importance in the post-pandemic world. Some of the measures include:

  • Extending the Operation Greens scheme, which was available only for tomato, onion, and potato; now, it includes 22 additional commodities
  • Protecting the fruits’ and vegetables’ cultivators from selling under distressed conditions
  • Minimizing the price risks for vegetable and fruits growers
  • Providing 50% subsidy on the total transportation cost and hiring appropriate storage facilities to strengthen the value chains for fruits and vegetables
  • Reducing wastage and providing a stable income for cultivators of vegetables and fruits
  • Strengthening 1,000 mandis with connectivity to e-NAM; thereby, expanding the scope of electronic trades, which can result in better prices for agricultural produce
  • Providing higher outlay for supportive and direct infrastructure to connect production and consumption centers
  • Suggesting the development of a multipurpose seaweed park to provide employment and income opportunities to the population living along the Indian coastline
  • Increasing the allocation to the Rural Infrastructure Development Fund (RIDF) from INR 30,000 crore to INR 40,000 crore
  • Extending the SWAMITVA scheme
  • Doubling the micro-irrigation fund to INR 10,000 crore
  • Increasing the target agricultural credit

Farmers can improve their capabilities by investing in new tractors to take advantage of the provisions offered in the Budget. Tractor finance from Mahindra Finance can help them increase their output. The lender offers funding without mortgaging the land. Moreover, it provides economical tractor loan interest rates. The entire procedure is simple. The borrower needs to submit minimal documents and check tractor loan eligibility ,pay a minimum down payment. Farmers can repay the liability in five years, ensuring they face no financial distress in timely servicing of the loan. So, if you are looking for funds to buy a tractor, visit the lender’s website now!

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