Budget 2014: NDA government opts for higher growth in agriculture

New Delhi: The Narendra Modi led NDA government’s maiden Budget is all set to lay a road-map to cut down excessive expenditure on urea subsidy and imports of edible oil and pulses, which together account for over Rs 1,60,000 crore each year.

Additionally, the Budget is to unveil Agricultural Price Stabilization Fund in more robust manner to insulate farmers from adverse impacts to their incomes and also to curb inflationary pressure. With the Prime Minister Narendra Modi having made his intent clear that he seeks a major turnaround in agriculture, the Budget, which will be presented by the Finance Minister Arun Jaitely, will seek to make substantial allocation of funds for the farm sector.

"The government spends Rs 80,000 crore each year on subsidy for urea. There is an assessment that this could be cut down by a minimum of 50 per cent, as farmers over use them. So, the Budget will make significantly higher allocation to ensure that soil health cards are issued to each farmers in a time bound manner," sources said.

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Barring Tamil Nadu and Maharashtra, which have issued soil health cards to 63 lakh farmers and 15,000 villages respectively besides Gujarat, other states have not done enough work in this regard. Furthermore, India spends Rs 60,000 crore and Rs 12,000 crore each year on imports of edible oils and pulses respectively.

"The upcoming Budget will make significantly higher allocation to Agriculture Technology Infrastructure Fund to become self-reliant on pulses and edible oils, while also making technical intervention in farming a huge success in the coming years on the lines of Israel," sources added.

Also, the Budget in a bid to take the idea of Mr Modi forward in promoting organic farming and use of organic manure will also make significant financial allocation for the states. Mr Jaitely is likely to significantly enhance allocation for Rashtriya Krishi Vikas Yojna (RKVY) under which the Centre assists states for agricultural development to achieve the objectives of the NDA government for higher growth in agriculture.