Reorientation of 18 schemes under 10 broad subjects and more freedom to States to implement their own plans in agriculture, besides nearly 74 per cent hike for fisheries and increased allocation for fertiliser subsidy amid call to shift towards natural farming show a clear blue print for the farm sector for next year. Even though there were no specific new announcements as expected by stakeholders, sufficient indications are there in the Budget document to what are the steps likely to be taken over the next one year.

After a long gap, the allocation under Rashtriya Krishi Vikas Yojana (RKVY) has seen nearly three-fold jump to ₹10,433 crore for 2022-23 from ₹3,712.44 crore (BE) in current fiscal and the hike is over five-times from the revised estimate. The scheme, started during UPA government, had found support from Madhya Pradesh Chief Minister Shivraj Singh Chouhan who even had pitched for all Central schemes to be like this as it allowed States to develop and implement their own plans.

“There is a major emphasis on procurement of paddy and wheat, but bulk allocation should shift to pulses and millets,” said former Union Agriculture Secretary SK Pattanayak. More allocation to RKVY will give flexibility to States to mould these funds the way they want, he said. However, one has to see what is the total allocation for the farm sector minus PM-Kisan, crop insurance and interest subsidy, he added.

Out of the total ₹1,24,000 crore allocated to the Department of Agriculture and Farmers Welfare, allocation to PM-Kisan, Pradhan Mantri Fasal Bima Yojana (PMFBY) and interest subsidy for crop loan has a combined share of 83 per cent at ₹1,03,000 crore. In the current fiscal (BE), the share of these three schemes was nearly 82 per cent of the allocation made for the department.

No separate programmes

The Budget has clubbed all major activities in the 50:50 fund sharing plan with States under a new Krishionnati Yojana divided under 10 areas like agri extension, integrated development of horticulture, and seed and planting material. There will be now no more separate programmes like National Project on Soil Health and Fertility, Rainfed Area Development and Climate Change, Paramparagat Krishi Vikas Yojana and National Project on Agro-Forestry.

Earlier, there was no allocation under extension and ₹1,000 crore to it separately will take care of many activities and a micro focus on this key activity which is crucial for raising farmers’ income whether it is technology adoption or reduction in input costs, said an agriculture ministry official. The details of fund utilisation will be worked out in consultation with States since extension is in their domain and they will also have to deposit the matching share, the official said.

As outlined in the Economic Survey on the need to focus more on non-farm businesses, animal husbandry, dairy and fisheries sectors to boost farmers’ income, Finance Minister Nirmala Sitharaman has increased allocation for the Department of Fisheries by 73.5 per cent to ₹2,118.47 crore and by 26.3 per cent to ₹3,918.84 crore for the Department of Animal Husbandry and Dairying.

Lower allocation

However, there is no clear indication on the chemical fertilisers even as the Budget mentioned about the need to shift towards chemical-free natural farming as the subsidy on urea has been kept at ₹67,186.78 crore, 7 per cent more than current year (BE), while it is more than doubled to ₹42,000 crore in case of phosphorous (P) and potash (K). But the allocation is lower compared with revised allocations for current year in all three nutrients.

“The focus on start-ups and AgriTech will be helpful for the development of a digital ecosystem and technology inclusion in the farm sector. However, most industry aspirations remain unmet,” said Ajay Kakra, Leader – Food and Agriculture, PwC India.

The silver lining is that it has put focus on technology and has concentrated on logistics from which agriculture sector will reap the benefit. Since the Budget was very cryptic and short we do not know the outlines of the actual proposals that will throw light in the coming days,” said Pattanayak.