Addressing Issues Of Farm Sector High Priority For Government, Says Sitharaman

Finance Minister Nirmala Sitharaman said addressing concerns of the agricultural sector is a “high priority” for the Modi government.

In her first pre-budget meeting, Sitharaman discussed ways to boost economic and social infrastructure in rural areas and eradicate poverty by developing agriculture and allied sectors. She stressed upon encouraging startups that can provide remunerative markets for agricultural products and supply it to final consumers at reasonable prices, according to a government statement.

This comes when growth in agricultural sector's gross value added—a measure of income before produce is sold—contracted 0.1 percent in the January-March period. That compares with a growth of 2.7 percent in the three months to December.

The representatives from agriculture and rural development sectors suggested various options to boost investment in the sector and to enhance market access to farmers, the statement said.

While Confederation of Indian Industry's Director General Chandrajit Banerjee pointed out the need for a dedicated fund for rural startups that provide services to agriculture, NITI Aayog Member Ramesh Chand said a lot of emphasis must be given to food processing as it creates better demand and value for farmers.

It was also suggested to introduce technology-intensive processes in the non-farm sector and that solar energy be treated as “third crop” to augment income of farmers.

The National Diary Development Board sought export incentives for dairy products to maintain its existing growth rate of 6 percent. The board also sought a reduction in the goods and services tax rate on ghee from 12 percent, its Chairman Dilip Rath said after the meeting.