WE expect major reforms in the Agriculture and Agri-tech spaces
Last year’s budget emphasized greatly on increasing the basic income of farmers with the introduction of Minimum Support Prices. In order to follow through and reach the target to double farmer’s income by 2022, major reforms in the Agriculture and Agri-tech spaces are expected this year as well. There have been hints indicating a 10% increase in the agricultural credit flow, with a special focus on the Direct Transfer Benefit Scheme. This scheme can act as a game changer for farmers in distress.
My suggestion is that in order to convert the Agricultural Sector into a high performing one – that is, one which has better margins with increased income for farmers – it is imperative that a good budget is allocated for the Agri-Tech space. Providing technology to farmers at a subsidized cost, or in a tax-free model, will lead to higher adoption rates, which in turn will make them much more efficient and provide data points that can drive the Indian Agricultural space to new heights.