Agriculture Budget 2021 Expectations: What to Expect from Modi Government amid Farmer’s Protest?

In spite of meetings with government and Supreme Court’s decision to form an expert committee, farmers are firm on their demand to withdraw the new farm laws, and are continuing to protest.

Budget 2021 will determine the path of growth of the Indian Economy. And everyone is extremely curious to know that what the government has for the agricultural sector. And farmers are protesting for more than a month against new agricultural laws.

This may drive the Modi Government to present an exceedingly Farmer-favourable Budget in 2021. As per experts, clarifications related to MSPs for crops, new schemes to help the farmers, enhanced cash benefits, and some modifications in the existing credit mechanisms may be the major concerns of the forthcoming Budget.

It is expected that Nirmala Seetharaman will target growth more than anything else in the forthcoming budget, as it is important to lift up economy out of the pandemic-induced sump. And government may come up with farm-centric budget and policy.

Chief Economist of Bank of Baroda, Sameer Narang said, “The government has already implemented a number of schemes for agriculture such as direct benefit transfer under PM Kisan, MGNREGA scheme for farmers, Rs. 1 lakh crore agriculture infrastructure fund, and interest subvention.”

Prime Minister Narendra Modi assured farmers that MSP facility will not be withdrawn, but farmers are demanding to add the provision for that in the laws. But, till date government has not agreed for that, but assured for written guarantee. In the upcoming budget, the government may allocate extra funds to effectively roll out the new laws.

Budget 2021 could provide for allocating MSP for key crops and funds for effective and seamless implementation of the farm laws, said Arvind Sharma, Partner, ShardulAmarchandMangaldas and Co.

As per the first estimates released by the government, farm sector is likely to grow at 3.4% in the current fiscal year.

Source- Financial Express