Union Budget 2024: Time To Further Modernise Agri Sector With Corporate Investments

New Delhi: There is a further need to modernise agriculture and the private sector, especially in new research, post-harvest infrastructure and exports, industry experts said on Saturday. NITI Aayog has called for a paradigm shift in India's agriculture approach, emphasising the need for a facilitating regulatory environment to enable private and corporate investments in new technologies, infrastructure, and producer linkages.

“This is crucial as public sector R&D is constrained, leading to a widening gap with global innovations. Investments in post-harvest infrastructure and private sector participation in exports can boost farmer incomes and integrate them with global markets,” said Amit Vatsyayan, Leader GPS-Agriculture, Livelihood, Social and Skills, EY India.

The private sector can play a pivotal role in this, along with delivering knowledge, skills, and services to help farmers manage risks and increase productivity. However, a balanced approach is needed, combining modern technology with targeted government schemes to ensure inclusive and sustainable growth, said Vatsyayan.

Experts said that given the increasing threat to crops because of adverse weather conditions arising from climate change, one looks forward to a robust rise in the R&D outlays so that both private and government institutes are motivated to develop climate-resistant crop varieties.

“The crop rotation system should also be incentivised, whereby more farmers are encouraged to adopt this strategy,” said SK Chaudhary, Founder Director, Safex Chemicals Ltd. The GST rate of 18 per cent on plant protection chemicals can also be lowered to 12 per cent at the least, although a minimal rate of 5 per cent would be more beneficial for the agri sector and consumers at large as it will reduce the cost of growing crops, he mentioned.

Overall, modernising India's agriculture will require a multi-pronged strategy -- one that harnesses the strengths of the private sector in areas like research, infrastructure, and exports, while also leveraging digital solutions and government support to drive inclusive and sustainable growth in the sector, said experts.