Agriculture sector gets a boost; FM Sitharaman increases outlay to Rs 16.5 lakh crore

NEW DELHI: Union Finance Minister Nirmala Sitharaman has announced that the total outlay for agriculture and rural sector for the FY21-22 will be Rs 16.5 lakh crore. In the last budget, Sitharaman had allocated Rs 2.83 lakh crore.

"Our Government is committed to the welfare of farmers. The MSP regime has undergone a change to assure price that is at least 1.5 times the cost of production across all commodities," she said.

It is noteworthy that farmers have been agitating for more than two months on the borders of Delhi to repeal the three new agricultural laws and demanding a legal guarantee for the purchase of crops at the minimum support price (MSP).

Earlier on Friday, lauding the farm sector for demonstrating resilience during the pandemic, the Economic Survey had suggested the government see farm sector as a "modern business enterprise" for which "urgent reforms" are required to enable sustainable and consistent growth.

Macro data shows that agriculture and allied activities have been the sole bright spot amid the slide in GDP performance of other sectors in recent months, clocking a growth rate of 3.4 percent at constant prices during 2020-21.

The Finance Minister spoke about thrust provided to the farm sector by various measures on credit, market reforms and food processing under the Aatmanirbhar Bharat announcements.

The budget noted that an increase in the area under irrigation, adoption of hybrid and improved seeds, increasing variety replacement ratio and augmentation in seed testing facilities will help address low productivity concerns. Further, adequate storage and remunerative markets for agricultural products will be the main focus of post-production management.