Budget 2013 Highlights: Agri allocation up 22% at Rs 27,049 crore

The finance minister announced that the interest subvention on crop loans will continue and allocated Rs 27,049 crore to the ministry of agriculture; up 22 percent (YoY). The JNNURM will help in purchase of buses in hilly stations and has alloted Rs 14,873 crore for JNNURM.

The 4-percent farm loan scheme has been extended to private sector banks and eastern states will get Rs 1,000 crore for the Green Revolution The Budget also sought agri-commodities to be exempt from CTT.
The finance minister announced that a Indian Institute of Agri-Biotechnology will be established at Ranchi, Jharkhand and Rs 5,000 crore will be made available to NABARD to finance agri-produce storage.
Expectation:  With the agriculture growth rate falling short of the 4-percent target in the last five years, the sector needs urgent reforms to boost crop yields and private investment in infrastructure so as to motivate farmers and feed the growing population. What last year’s Budget said: The total plan outlay for the department of agriculture and cooperation was increased by 18 percent from Rs 17,123 crore in 2011-12 to Rs 20,208 crore in 2012-13. The outlay for Rashtriya Krishi Vikas Yojana (RKVY) was increased from Rs 7,860 crore in 2011-12 to Rs 9,217 crore in 2012-13. 
The Budget proposed to set aside a sum of Rs 200 crore for incentivising research with rewards, both for institutions and the research team responsible for such scientific breakthroughs. Farmers need timely access to affordable credit. The target for agricultural credit in 2012-13 was raised to Rs 5,75,000 crore.