Union Budget 2020 Impact On Agriculture Sector

The agricultural sector has been in a slow down for a past couple of years now. To overcome this, Finance Minister N. Sitharaman through this budget tried to change this situation. The finance minister proposed a 16 point action plan in her speech while presenting the budget so as to improve the condition of the agricultural sector and to double the income of the farmers in the next two years.

This year’s union budget is woven around three prominent things.

i)  Aspirational India

ii) Economic development for all

iii) Creation of a caring society

The Budget included the following points 

• Rs 2.83 lakh crore will be allotted to the agriculture sector and irrigation for FY21.
• To resolve the issue of transportation from the farms to the market and to control the prices of products the government plans on setting up a ‘Kisan Rail’ so that quick transportation can be made and it will be set up through public-private partnership.
• The government also plans on pushing for solar power usage in the farms by promoting solar energy among the farmers. The government through this budget plans on helping around 20 lakh farmers by setting up solar pumps and also set up solar irrigation facilities.
• The government also plans on increasing fish production by up to 200 lakh tonnes by 2022-23 and helping the fishermen.
• The farmers will be encouraged balanced use of all types of fertilizers to change the ‘incentive regime’ which currently encourages the use of chemical fertilizers.

CONCLUSION

The government plans on reviving the agricultural sector and doubling the income of farmers. The government will focus on Zero Budget farming which proposed in previous year budget by the government. As the FM announced her 16-point formula to revive agriculture, the Agri stocks shot up on stock exchanges. Sitharaman expressed hopes that these initiatives will double farmers’ income by 2022, a target set by Prime Minister Narendra Modi in his public speeches.