Ancillary Businesses of Farmers will be a Boon to Agro Industry in 2022
December 4, 2020
With the advancement in technology and a smart business strategy by our PM Narendra Modi, the agro-industry in India is revolutionalizing the way farmers do business. The 2018 Union Budget presented by the Government of India is highly plausible for the agricultural industry. In a remarkable move by PM Narendra Modi, the finance minister Arun Jaitley announced an agricultural credit expansion to INR 11 trillion for the agro-industry. The government has this budget exceptionally remunerative for this sector where farmers will now be able to indulge in ancillary businesses for their financial growth. The budget has moved away from its production focused base to a marketing-focused one, thereby exhibiting a substantial paradigm shift.
· The Indian government plans to increase the revenues of all framers by 200% within the year 2022.
· The agricultural sector will receive an investment of INR 14.34 trillion for supporting new existing schemes, implementing new ones, boosting the rural economy, and its overall production.
· All agricultural production companies with revenue less than INR 100 crore will see an exemption from any form of taxation. The budget also sets aside funds for other projects.
· INR 500 crores will go towards the promotion of agricultural logistics with the “Operation Green” mission.
· An investment of INR 2,000 will go for the development and up-gradation of around 22,000 hits and 585 Agricultural Produce Market Committees (APMCs) based in rural India. This will facilitate small-time farmers to connect with National Agriculture Market or NAM.
· Village Producers Organizations (VPOs) and Farmer Producer Organizations (FPOs) will encourage organic farming.
· Establishment of 42 food parks with state-of-the-art provisions.
· Budget allocated to food processing industry doubled to INR 1,400 crore.
· INR 10,000 crore allocated to animal husbandry, fishery, and aquaculture.
· Agricultural exports to be liberalized.
· The minimum support price for all Kharif crops would be raised by 1.5% of the production cost ensuring farmers don’t undergo exploitation.
With the Union Budget set in place for the benefits of a farmer and also considering the increasing number of farmer deaths yearly, ancillary businesses will now be encouraged more by the Government. These activities will not be the primary business of farmers but will help them in earning an extra income for the family. These businesses are:
· Nursery, Greenhouse or floriculture
· Poultry farming (harvesting animals and selling their produce)
· Fish farming
· Selling of vegetable, flower, field and forage seeds
· Selling of fertilizers, pesticides, insecticides, fungicides, etc.
· Agri Consultancy
· Cultivation of spices
· Cultivation of coffee and tea
· Preparing manure
· Selling of agricultural tools, machinery, and vehicles
· Cotton production
· Wood & timber business
· Agricultural land dealings
· Breeding of farm animals
· Producing essential oils
· Rearing of honeybees