Budget 2018: This is what the agriculture sector wants from FM Arun Jaitley

Key challenges

• Small landholding: Since the bulk of farmers have less than 2 hectares of land, there is a difficulty in getting the benefits of ‘economics of scale’

• Limited access to technology and extension: Farmers still do not have access to better technology. Also, effective dissemination of information from lab to land remains a challenge

• Storage: We need to come a long way in terms of availability and access of agricultural storage facilities for farmers

• Price volatility: The agri sector faces the Cobweb phenomenon, so there always exists a need to ensure farmers get remunerative prices

• Market integration: Farmers need to be better connected to the end-consumer. The number of stakeholders across the value chain needs to be reduced 

Industry ask

• Better environment for start-ups in food and agri business 

• Greater technological investments in the field of agriculture 

• Simplified leasing norms for setting up processing infrastructure

• Corporate farming norms to be made more acceptable and balanced for both farmers and corporates; buying and selling outside APMCs

• Increased involvement of private players for increasing storage infrastructure

• eNam should be implemented seamlessly over all markets and commodities

• Better mechanism for price stabilisation of agri commodities

At a glance

$252.82 bn - Combined gross value added (GVA) by agri, forestry and fishing at constant prices in FY17  

20% - The industry’s CAGR from FY14 to FY17

58% - The proportion of India’s population for which agri is primary source of livelihood 

$148.74 billion - Allocation to the sector and for and welfare of farmers in Union Budget 2017-18 

$2.45 bn - Combined FDI equity inflow into agri services and machinery sectors from April 2000 to June 2017, according to DIPP data

$7.81 bn - FDI equity inflow into the food processing sector during the same period

PwC POINT OF VIEW

Ajay Kakra, director (Agri & Natural Resources), PwC India

Investment in irrigation, farmer producer organisation, insurance and market integration, besides other sector reforms, need to continue

Further investment interest from the private sector is needed in backward integration, processing infrastructure and technology initiative

Industry voice

Siraj Chaudhry, chairman, Cargill India

Significant focus is needed on agriculture, with a view to improving rural economy and livelihoods

Policies and allocations are needed to ensure good prices for farmers’ crops, food and nutritional security and minimum wastage 

Risks will need to be reduced via better implementation and monitoring of risk-mitigating policies