Gujarat Govt push for agri sector, trebles allocation to Rs 21,605 crore

“Welfare of farmers of the state is our priority. Under the leadership of Gujarat’s popular and honourable Chief Minister Bhupendra Patel, our government is working for the happiness of fishermen and cattle-herders.

The government has taken a number of initiatives to augment capital investment in agriculture, animal husbandry and fisheries and increase availability of credit,” Finance Minister Kanu Desai said while presenting the budget.

The minister proposed to set aside Rs 9,705 crore to water resources department, Rs 8,738 crore to the energy and petrochemicals department, Rs 30 crore to the food, civil supply and consumer affairs department for procurement of millets from farmers and distribute the coarse grain through the public distribution system.

Highlighting that the Central government has transferred around Rs12 lakh crore directly in the bank accounts of 61 lakh farmers over the last four years under Pradhan Mantri Kisan Samman Nidhi, Desai allocated Rs 615 crore for providing farmers subsidies for purchasing tractors and other agricultural equipment and thereby promote mechanisation of agricultural operations.

The minister also allocated Rs 400-crore subsidy to farmers for solar fencing and barbed-wire fencing around agricultural fields to protect crops from being damaged by wild animals.

In a bid to encourage farmers to switch over to cow-based farming, the government allotted Rs 203 crore for farmers to help them maintain their cows and Rs 500 crore for Mukhyamantri Guamata Poshan Yojana (MGPY) for providing maintenance to gaushalas and cattle pounds taking care of feral and unproductive cattle.

Farmer leaders said the budget has many welcome initiatives but nothing substantial to keep farming an attractive occupation.
“Around 50 percent of Gujarat’s population earn their farming by agriculture and by that token, Rs 21,000 allocation to this sector from a Rs 3 lakh crore budget is very low proportionately. While Rs 500 crore for MGPY and Rs 203 crore for cow-based farming are welcome steps, the budget is silent about the increasing input costs in the form of increased prices of seeds, fertiliser and pesticides,” Dilip Sakhiya, former Rajkot district president of Bharatiya Kisan Sangh said, adding, “On the one hand, government gives subsidy on farm equipment but levies average 12 percent GST on them.”

But Hiren Hirapara, a farmer leader from Amreli who pledges support to the BJP, said, “This budget also lays ample emphasis on rural development. Along with the Central government’s budget, the state government budget gives farmers a lot to cheer about”.

The minister also earmarked Rs 1270 crore as interest subvention subsidy to farmers, cattle-herders and fishermen for up to Rs 3 lakh short-duration loan they avail every year.

He also announced Rs124 crore for computerisation of primary agricultural cooperatives and Rs 38 crore for construction of warehouses in agricultural produce market committees in the state. Allocation for research in agriculture, animal husbandry and dairying and fisheries has been increased to Rs1,153 crore.

In an indication of implementing the Kisan Soryodaya Yojana fully, the scheme to supply power to farmers during daytime, the FM proposed to allot Rs1570 crore for the scheme for the next fiscal.

He also proposed to set aside Rs1,010 crores for giving agricultural power connections to farmers in tribal, coastal and other regions of the state and Rs152 crore subsidy to farmers for purchasing solar power pumps under PM KUSUM Yojana.

With an aim to augment availability of irrigation water in semi-arid Kutch, Desai allocated Rs1,970 crore for laying pipelines for pumping one million acre feet (MAF) of Narmada floodwaters to the district and Rs 724 crore for missing links of Saurashtra Narmada Avataran Irrigation (SAUNI) Yojana.