PHDCCI Prez shares Pre-budget Agri Sector Expectations

It’s essential that an integrated holistic view of the agriculture value chain is taken towards providing the necessary fillip to the agricultural growth: Saket Dalmia, President, (PHDCCI)

In the run-up to the upcoming Union Budget, many industry stalwarts, stakeholders and experts have expressed their views on what can make or break the agri sector growth. Recently, Saket Dalmia, President, (PHDCCI) shared his views.

The major highlights include:

1) Reforms in rural infrastructure logistics and cold chain are required as it would help in increasing the level of food processing industry and rural entrepreneurship. These would lead to increased participation in the global agriculture and food exports. Exports of agri and food processing products should be increased to the level of $ 100 billion in next three years from the current level of around $ 50 billion (2021-22).

2) The increase in public investments in agricultural infrastructure would attract private investments in cold storage, warehousing and supply chain of agriculture produce in order to reduce food wastage and get them to urban citizens at moderate rates. It shall also raise the returns to agriculturists.

3) Strengthen access to credit for long term loans to enhance growth and productivity in the sector and to enhance farm incomes.

4) Adoption of direct transfer of subsidies on electricity, fertilisers, etc. to the beneficiaries to ensure better delivery of subsidies to the end-users.

5) Minimise the wastage from the current level of more than 30 per cent to less than 10 per cent in next five years by augmenting storage capacities, modernising/ upgrading the godowns.

Need for holistic view

It is essential that an integrated holistic view of the agriculture value chain is taken towards providing the necessary fillip to the agricultural growth. This requires a joint participatory approach from all concerned stakeholders including the farmers, input vendors, traders, processors and the government. The Union Budget can be very effective in laying down a comprehensive policy framework and providing a tremendous thrust through appropriate fiscal benefits and closely monitor the action plans.

It's essential that an integrated holistic view