Budget 2016: Agriculture may grow 4% in FY17, says Radha Mohan Singh

NEW DELHI: Agriculture minister Radha Mohan Singh expects the country to achieve 4% growth in the farm sector next fiscal year, helped by the Budget boost and on early predictions of a favourable monsoon. "I am told by scientists and officials that this year the monsoon is looking good.

It should not be a drought year, which is good news for farmers and the agrarian sector," he said. The various welfare and infrastructure development schemes announced by the government will help achieve the growth target, he said. The Budget presented on Monday has allocated Rs 35,984 crore for the agriculture sector and farmers’ welfare, with major thrust on irrigation programmes. Funds will be mobilised by levying a Krishi Kalyan Cess on all taxable services and a Krishi Kalyan surcharge on domestic undisclosed income.

The Budget has also earmarked Rs 38,500 crore for the rural job guarantee scheme. Singh said the funds raised though the cess will be used to fund various farm initiatives.

Performance of the agriculture sector has been patchy in recent years – it grew 1.5% in 2012-13 and 4.2% in 2013-14, but then shrank 0.2% in 2014-15. Estimates for 2015-16 suggest a 1.1% expansion. The uncertainties in growth are explained by the fact that 60% of agriculture in India is rain dependent and there have been two consecutive years of less than normal rainfall.

This year, the government plans to bring every block affected by drought and natural calamities under the Deen Dayal Antyodaya Mission.

Under this, self-help groups will be formed by the government and they will be provided training in various disciplines, Singh said.

Cluster privileges team will be constituted under the rural employment scheme which will ensure water conservation and management of natural resources, the minister said.