The vote on account budget presented on February 1 2019 set an ambitious precedent by announcing the PM Kisan scheme, that too from a back date of December 1, 2018. So, this year also, expectations were high for the agriculture and rural sectors, which have been falling behind. Union finance minister Nirmala Sitharaman showed rectitude by not announcing similar hikes on the eve of general elections.
Since the elections are so close, no one was really expecting serious reforms in the agri-food sector. In recognition of India’s federal constitution, the Finance Minister did well to highlight that the reform process will be continued in consultation with the state governments.
The FM rightly took the credit for handsome hikes in the Minimum Support Prices and proactive management of food inflation, in challenging geopolitical circumstances, with the Russian war on Ukraine and Israel’s war on Gaza continuing unabated.
It was somewhat ironic that the FM took credit for continuation of commitment to distribute highly subsidised food grains under the National Food Security Act, 2013. The Act allows the Government to raise the issue price after three years. Instead of revisiting the number of really deserving people, the Government made it free with effect from January 1, 2024. A Niti Ayog report shows that multidimensional poverty has declined from 29.17 percent in 2013-14 to 11.28 percent in 2022-23 with about 24.82 crore people escaping poverty during this period.
But it does not seem to have convinced the Government about the reduction in income poverty of 81 crore people. Therefore, foodgrains have been made free for five years.
The FM announced that nano DAP will be introduced. IFFCO had introduced nano urea in August 2021, and it was claimed that 500 ml nano urea is as effective as a 45 kg bag. A recent report however found that the effectiveness of nano urea has not been experienced by the farmers. It must be noted that a bottle of nano urea costs only Rs 225, while the real cost of a bag of urea, including government subsidies, is Rs 3,000. It is hoped that ICAR’s research and evaluation of nano urea will be completed soon and released in public domain.
The FM made some good announcements about the fisheries and food processing sectors. Announcement of enhancement of fish productivity from 3 tonnes to 5 tonnes per hectare is promising and will be welcomed by fishermen across India. A lot of investment in the supply chain of fisheries is needed as fish is a source of high-quality protein and for malnourished people this can be highly beneficial.
On the whole, it is a responsible pre-election budget.
Siraj Hussain is a former Union Agriculture Secretary. Views are personal, and do not represent the stand of this publication.
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