Tuesday, January 16, 2018

What can agriculture expect from union budget?

This is last full budget of Shri Narendra Modi led NDA Govt. As per expected there will be a lot of things for poor, farmers and common man as all there are major vote contributor. For the benefit of farmers Govt will give through agriculture and for common man govt will give through industry. What does farmer or agriculture need?

Govt must come with complete supply chain assistance which will assist both farmers and common man. Govt must come with two or three crop specific supply chain system in every district.  It will require farmers for production, common man for employment and industrialist for run this concept.


District “X” produce a lot of tomato. First of all, govt must ask agri input companies for quality seeds and micro nutrient fertilizers as per general soil analysis of that district. It will require an expert team of agronomist for tomato cultivation so that attack of disease and insect can be controlled at first step.  Assist farmers in better production. During the cropping period govt must assist industry to establish sufficient storage facility (it can be permanent or temporary) and all possible processing facilities, which can be pulp extraction, sauce making, dice tomato canning, drying, powder making and long-term tomato storage. 


Now question is consumption. Govt must come with concept of promotion of this processed tomato. There must be some GST benefit for a period to ready to eat or processed. Food. Once people will start to use these production then demand will increase slowly and slowly. Dehydration if most stable form which can be stored for long time with zero additional charge. Dry form will also easy to transport. But it must cover complete value chain from production to end consumption.


For some time ready to eat packaged food must keep out of GST. These processed food can be distributed to mid-day meal program. It will save cost of mid-day meal preparation at every school and children will get nutritive food. Processed food have maximum solution of inflation, price falling, storage, consumption, wastage. 

This is just an example there can be several other idea. In current budget govt focus on food processing, with complete value chain setup ( from production to consumption) and consumption of processed food. 

No comments:

Post a Comment