Budget 2022: Big Boost For Farmers As Rs 2.37 Lakh Crore MSP Direct Payments Announced

Chemical-free natural farming will be promoted in the country with a special focus on 5 Km corridor along the river Ganga in the first phase, said the FM

New Delhi: In a major boost to farmers, finance minister Nirmala on Tuesday announced Rs2.37 lakh crore worth of MSP direct payments to wheat and paddy farmers in the Budget for FY22-23. Sharing further details on the International Day for Millets, the FM said “Support will be provided for post-harvest value addition, enhancing national consumption and branding millet products nationally & internationally.”

Chemical-free natural farming will be promoted in the country with a special focus on the 5 Km corridor along the river Ganga in the first phase, the FM said while delivering the fourth Budget for FY 2022-23.

Amith Agarwal, co-founder and CEO, AgriBazaar, said, "This year’s budget is forward-looking and takes a long-term view of making India an economic superpower. Key areas to promote self-sufficiency, Atmanirbhar Bharat and a simpler life for the citizen are the thrust areas alongside infrastructure-led capex spending. One of the key initiatives of Madam Minister that will have a ripple effect for the rural economy is the announcement of laying of optical fibre line in villages under BharatNet project under PPP in 2022-23."

"Digitisation of rural India and making high-speed internet available to every villager will result in higher incomes and a better quality of living. FM’s announcement of a comprehensive scheme that reduces the reliance on oilseed imports is good news as it will focus on changing the crop sowing pattern of the Indian farmer. In addition, it will save precious foreign exchange and ensure higher price realization for the Indian farmer," Agarwal said.

In the Budget, FM had announced kisan drone for promoting crop assessment, digitising land records, spraying agri-nutrients like fertilizers and pesticides.

Agarwal said that these will give a fillip to increasing the yield of the small and marginal farmers. "Moreover, it will bring about scientific thinking towards Indian agriculture. Similarly, promoting chemical-free natural farming in India is a big step in ensuring healthy produce for Indians and making our agriculture export-ready. Especially for premium markets like Europe, the USA, Japan, etc. Additionally, it will reduce the input expense of the Indian farmer, resurrect soil health, and ensure we take care of mother nature.Including 100 per cent of India’s 1.5 lakh post office on the core banking system is transformational. It will not only speed up financial inclusion but ensure farmers in rural areas can link their bank and post office accounts. We believe it will help in easy availability of finance for the small rural customers. I look forward to the fund, which will have blended capital raised under the co-investment model through NABARD for financial start-ups in the agriculture and rural enterprises. It will attract capital in the rural sector and ensure scientific upgrades in the farm produce value chain," he added.

On Monday, the Economic Survey stated agriculture and the allied sector proved to be the most resilient to the Covid-19 shock as it registered a growth of 3.6 percent in 2020-21 and improved to 3.9 percent in 2021-22, driving the overall Indian economy's real GDP expansion of 9.2 percent in 2021-22.

Rationalized and comprehensive scheme to be implanted to reduce reliance on oilseed imports. "Procurement of wheat in Rabi season 2021-22 and the estimated procurement of paddy in Kharif season 2021-22 will give cover 1208 lakh metric tonnes of wheat & paddy from 163 lakh farmers& Rs 2.37 lakh crores will be the direct payment of MSP value to their accounts," said FM Sitharaman

The document released on Monday highlighted how Minimum Support Price (MSP) policy is being used to promote crop diversification. Important findings of the latest Situation Assessment Survey suggested the net receipts from crop production alone have increased by 22.6 percent as compared to the previous SAS Report of 2014 although there is a visible diversification in the sources of income of the farmers, according to the IANS report.

It also said that the growth in the allied sector is in line with the recommendations of the Committee on Doubling Farmers' Income.

Stating that the agriculture sector has experienced buoyant growth in the past two years, the Economic Survey noted that the agriculture and allied sector is the largest employer of the workforce as it accounted for a sizeable 18.8 percent (2021-22) in Gross Value Added (GVA) of the country.