Crops need more support from Budget

For the first time this year, farm growth is close to 4%. Breaking through stagnation, wheat production has gone up to 75 million tonne from 65 million tonne earlier. There has also been substantial improvement in the production of other crops such as sugarcane and cotton. But even then, high-priced imports of wheat had to be made to boost our buffer stocks for emergencies. That does not mean there is not enough wheat to meet domestic demand. Over 60% of the people buy wheat from the open market, and if the FCI starts buying from the open market, we would distort domestic prices badly. Today, there is no shortage of reasonably-priced wheat supply to consumers.

NFSM & steps on farm input

The domestic demand is going up phenomenally because of the 8-9% growth-driven changing food habits and programmes like the NREGP that give more purchasing power to rural India. We have to work really hard to make the National Food Security Mission (NFSM) successful to increase rice and pulses production, too. Strengthening key farm inputs is imperative if we have to once again become self-sufficient in food. We have big expectations from the Budget on increased investment in irrigation. We have to provide more funds, as 40% of agriculture depends on irrigation and there is a direct correlation between irrigation facilities and reduction of hunger and poverty in developed countries. To increase rainfed area output, we need huge investments in the Budget and beyond.

Edible oil

Globally, oilseeds are short on output and are also being diverted to biofuels. In the last two years, we have achieved record area coverage. But in the Budget, we need to incentivise new higher yield varieties to reduce import dependency.land holdings

About 82% agricultural land is small and marginal holdings, and 60% are rainfed farm lands. About 62% of the population is still dependent on agriculture for a living. Unless we relieve pressure on land, we won't succeed in increasing production. Non-agricultural income is growing gradually, and that is a good sign because only that can free large tracts of farm lands and allow the private sector to be incentivised toward making substantial investments in agriculture.