With the Indian economy expected to grow at a rate of more than 9% in 2021-22, Finance Minister Nirmala Sitharaman is likely to have an edge in announcing budget 2022 aimed at accelerating growth. Farm laws, on the other hand, were supposed to be the backbone of growth-based reforms in the agriculture sector, as Sitharaman asserted in her 2021 General Budget speech.
The government is likely to present new possibilities to improve the farming sector across India, now that the three agriculture laws have been repealed.
The government is expected to continue with its ambitious Rashtriya Kisan Vikas Yojana (RKVY) to boost pulse and oilseed production.
Agricultural Finance target could be increased to Rs 18 lakh crore
The Agri Credit objective could be increased from Rs 16.5 billion to Rs 18 billion. Farmers would be able to delink themselves from non-institutional sources where they are required to borrow at excessive rates of interest, according to sources quoted by the news agency PTI.
Normally, farm loans have a nine percent interest rate. The government, on the other hand, has been giving interest subsidies to make short-term crop loans more affordable and help improve farm productivity. This is also expected to be continued in the next budget.
Crop Diversification will be a Priority
Farmers in Bihar earned more per hectare than the farmers in Haryana, according to a National Statistical Office study from September 2021. Punjabi farmers appear to be making significantly less money than the national average. While sticking with rice-wheat may provide predictable results, farming in many parts of the country is becoming increasingly expensive due to dwindling water supplies and declining soil quality.
Crop diversity, according to experts, is one of the most important routes out. More subsidies are likely to be introduced by the government to encourage crop diversity across India.
