1. Commodity News

Union Budget 2021-22: Export related Incentives Desirable for Indian Agri Sector

Abhijeet Banerjee
Abhijeet Banerjee
Sitharaman
Nirmala Sitharaman Minister of Finance of India

Most of us would be aware about India experiencing another bumper harvest season of the Kharif crops, following improvement in the distribution of monsoon rain during the last fortnight of August, and meticulous efforts of the government in increasing the land area under sowing.

Besides, there are reports of rise in planted area of Rabi Crop so far, versus last year’s corresponding period.A good harvest is helpful for the government to replenish its granaries for the Public Distribution System and reduce the issues of hunger and malnutrition. Another important advantage is that this enhances the export possibilities due to rise in the Supply availability. Ultimately this helps in making the country self-sufficient and lowering or eliminating the necessity to import. We have now transformed into a commodity surplus nation and lead in worldwide production in several agricultural products. As such, exporting of commodities appearshighly lucrative as the scope for enhancing our dollar reserves increases.

Therefore it will be a welcome move in case there are lucrative export incentives in the forthcoming Union Budget. This will be beneficial for the farmers since they can avail themselves more of benefits in terms of prices. This would encourage farmers, not only raise agricultural output but also focus on quality aspects, which are quite important for exporting.

At the same time this will benefit the exporters as well and lead to growth in the country’s GDP. Therefore to support export growth, the financial budget can aim for boosting cultivators (particularly the more modest farmers /FPOs), to match the certifications of the importing nations. Modernizing and fortifying the current research centers can be considered with increased allocation for more R&D work.

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