Budget 2020 wishlist: Here are the key challenges for agriculture sector

At a glance

• Agriculture and allied sector GVA growth rate declined from 6.3% in 2017 to 2.9% in 2019
• Export in terms of value of agri commo-dities and processed food jumped 7% in 2019
• Erratic weather patterns disrupted agri activities
• Production is expected to decline for most crops as compared to the previous years  
• Cereals and food grains are expected to have a surplus production, while pulses and oilseeds will be short in supply as compared to demand, in the coming decade

Key challenges

• Agri-insurance scheme is facing issues 
• Capacity utilisation in edible oil refining has decreased from 65% to 46% in five years. 
• High-yielding cattle can be developed by using high quality sorted semen or live embryos.
• Climate change and bio-security affect agri
• Only 52% of the potential of inland fishery has been realised so far 

Industry ask

• MFBY needs to be revamped in terms of design
• Both short- and long-term measures needed to promote indige-nous edible oil
• Regulatory mechanism for import of high-quality semen and live-embryo for livestock needs to be simplified
• Need improvement in fishing gear, infra for deep sea fishing, collection, storage and traceability of harvest, and processing of aqua produce 
• Export needs to be supported through awareness programmes
• Start-ups and ag-tech promotion 
• A multi-faceted, syste-mic approach needed for climate change issue
• There is a need for planning in sowing, connecting various markets digitally for a better price discovery mechanism, and regular flow of marketable surplus

PwC point of view

“There is a huge potential for investment in various sub-sectors across thematic areas such as insurance, marketing infrastructure, cold chain and food processing. Policy thrusts in the right area can significantly improve performance of the sector. However, climate change poses a huge threat”
 

Industry voice

The agri sector needs priority and attention. Looking at this sector holistically across the value chain, addressing every stage, from farm to fork, shall prove beneficial. The entire crop diversification needs a robust incentive and implementation plan”