Can good irrigation double farm income?

The finance minister has reiterated that the government is committed to dou bling of farm incomes within five years. This is heartening, although we are not sure what is the base-year income one is taking to double. But deciphering his strategy from allocation of funds, three things stand out: one, irrigation seems to be a prime instrument. The total funds from the Centre for irrigation would amount to more than Rs 32,000 crore. Second, interest subvention on credit also amounts to Rs 15,000 crore; and, thirdly, insurance premium subsidy is budgeted at Rs 9,000 crore.

Allocation on Pradhan Mantri Grameen Sadak Yojana remains frozen at Rs 19,000 crore, as was last year. The traditional subsidy on fertilisers, despite its various inefficiencies, also remains at roughly Rs 70,000 crore, same as last year. All other initiatives in agriculture are relatively small but in the right direction. Be it eNAM and linking 500 mandis to eNAM and linking 500 mandis to electronic platform, corpus for Rs 8,000 crore with NABARD for dairy processing, etc.

The issue is whether this amount of resources can really make Indian agriculture going?

The answer may be `only partially'. Focus on water is commendable and one has to ensure that the money spent on major and medium schemes delivers some tangible results and in a short period of time.

But the big issue of reforming food subsidy of Rs 145,000 crore rema food subsidy of Rs 145,000 crore remains open. When FM mentions that 84 schemes have been put through DBT route and it has given good results in terms of reducing leakages and sav ing resources, why have food and fertiliser subsidies not been touched MNREGA also got a booster with a budget provision of Rs 48,000 crore. One only hopes that the water ponds being constructed are of good quality and they also help drought-proof the economy . Experience of earlier years has not been too happy .

It is a pity to see that the amount going for research and education of agriculture is meagre Rs 6,800 crore. This is way below 1% of agri-GDP that needs to be allocated to revitalise our agriculture with new seeds, and innova tions. In comparison, just one seed company (Monsanto) spends almost 70% more re sources for research and development of seeds and chemicals than the entire ICAR system in India! Overall, much of the allocations for agriculture are in the right direction, with water as the prime focus and covering risk of farmers through insurance premiums and help ing farmers through cheap credit.

But all these measures will still take a long time to ensure that agriculture grows at 4% on sustainable basis and doubling of farmers' incomes within 5 years may still not be in sight.