Budget 2017 Wishlist: Expectations from the agriculture sector

Industry size 

All Categories: $236 billion ( Rs 1,600,000 cr)

Employment figure 

90 million person days 

Contribution to Gross Value Added (GVA)

Agriculture contributes 15.4% of GVA

 

Key Issues or Areas of Concern

1. Infrastructure development initiatives for post-harvest products are in its preliminary phase. Post-harvest losses account for Rs 92,651 cr.

2. Instances of crop failure due to adverse climatic conditions is another major issue faced by the agricultural economy. 

3. PMFBY (Pradhan Mantri Fasal Bima Yojana) has shown a good uptake from the farmers which minimises risk of crop failure through insurance but the overall loss still remains a big challenge.

4. Large cultivable area still remains unirrigated, thereby limiting the per unit productivity of agricultural operations.

Industry demands

1. Enhanced Public investment for creation of infrastructure for the development agriculture such as roads, markets, warehouses, etc.

2. Improving the productivity and quality of agricultural produce to bring Indian farmers at par with the global standards.

PwC point of view

Ajay Kakra, Leader, Food and Agriculture, PwC

1. Technology intervention for empowering the value chain can bring a turnaround in agricultural sector. Digitisation can help improve procurement, streamline payments, converge producers with consumers and accelerate adoption and dissemination of new farm technologies.

2. Improving the fundamental strength to the sector through interventions in irrigation, insurance and farm credit can have a systemic long term impact on output of the sector

Read full transcript of webchat with Ajay Kakra

Siraj Chaudhry, Chairman, Cargill India

“Food processing industry has an important role to play in furthering the agriculture economy. The taxes and duties on agricultural produce need to be rationalised, thereby encouraging farmers to produce and at the same time maintaining an affordable price point for consumers. We welcome the indirect reform in the form of GST with an objective to create one market. We would be glad to see state levies on agriculture produces getting subsumed into GST tax slabs. This would truly ensure One Nation – One Market, helping farmers to sell their produce across the country.”