Budget gives impetus to farm sector with long-term clarity: Cofco Agri’s Samir Desai

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Updated: February 1, 2017 7:44:16 PM

The budget has given impetus to the rural agriculture sector without losing clarity by not falling into the trap of a short-term stimulus.

The key focus and increased allocation for rural development and farmers would provide necessary impetus to the agri sector.The key focus and increased allocation for rural development and farmers would provide necessary impetus to the agri sector.

The Union Budget 2017-18 has provided impetus to the rural agriculture sector without falling into the trap of announcing a short-term stimulus and losing clarity, Cofco Agri India’s Managing Director Samir Desai said on Wednesday.

“The key focus and increased allocation for rural development, infrastructure and farmers facilities such as credit, insurance, e-platforms, etc would provide the necessary impetus to the agri sector,” Desai said.

“The key focus and increased allocation for rural development, infrastructure and farmers facilities such as credit, insurance, e-platforms, etc would provide the necessary impetus to the agri sector,” Desai said.

Earlier, Finance Minister Arun Jaitley presented Union Budget 2017, which sought to boost infrastructure with record allocation and augment rural spending to revive private consumption, sending NSE Nifty above 8,700 points for the first time since October 24.

“This is a good and progressive budget as it addresses the roots and is in sync with the aim of the government to build a strong economy in the long run,” Desai said.

“The absence of expected short-term stimulus measure to counter demonetisation shows the courage on the part of the government and provides clarity for the way forward,” he added.

The Budget 2017-18, though not being seen as populist, proposed heavy public spending towards boosting rural agriculture sector.

Jaitley fixed agricultural credit target for 2017-18 at Rs 10 lakh crore; allocated Rs 40,000 crore to long-term irrigation fund; and kept Rs 8,000 crore for milk processing over three years. He also raised the farm insurance to now cover 40% of the net sown area, up from 30%.

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The measures are expected to help the government move closer to its objective of doubling the farm income by the year 2022.

“The effort to establish correlation between spot price and derivatives of underlying agri commodity by forming an expert committee is a welcome step by the government as this will benefit both the farmers and traders,” Desai said.

Cofco Agri India is a unit of Cofco Corporation, a supplier of agri-products and diversified foodstuffs.

“The boost in agri sector would have a positive impact on per capita income as agriculture is the source of livelihood for a major chunk of rural India population,” Desai said, adding, “This, in turn, would expand consumer demand and shall work favourably towards improving the growth rate of the country.”

 

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