India, with a population of over 140 crores, has more half its people engaged in agriculture. Thee are roughly 14 crore farming families and 14.43 farm labourers. Government's support for the farming sector is not a charity. Rather, they are among much-need measures to sustain us as a country. The agri sector is entitled for allocations in Budget. Although for namesake, every Budget typically raises allocation for the farm sector each year. The Finance Minister Nirmala Sitharaman has just broken that tradition.
The revised budget estimate in 2021-22 figured at Rs 4,74,750.47 crores while the current Budget shrank the allocation to just Rs 3,70,303 crores – a neat trimming of 1 lakh crore rupees. Allocation for rural development that stood at Rs 5.59 percent has been slashed to 5.23 percent this time. Also downsized are allocations for crop procurement, crop insurance, subsidies for foodgrains and fertiliser etc.
Procurement Cut : Demand for inclusion of all crops into procurement programme has been turned down. The Budget lays down procurement of 1208 lakh tonnes of paddy and wheat from 1.63 crore farmers, meaning only 10 percent of farmer population will come into the ambit. Compared with past figures, it spells a 7 percent reduction in procurement and 17 percent cut in beneficiaries. That is, in place of 1.97 crore beneficiaries last year around, there are only 1.63 crore now – an exclusion of 34 lakh paddy-wheat farmers. The Budget has also trimmed allocation for foodgrain procurement from Rs 75,290 crores to 60,561 crores. Subsidy allowed to FCI has been slashed by 28 percent. This is expected to reduce wheat-paddy stocks in significant margin during 2022-23. Combine this with variations in weather conditions, and food security in the country is bound end up in crisis.
Fuel Subsidy Rollback: Added to all this is withdrawal of fuel subsidy. With rollback of subsidy on petrol and diesel, there has occurred sharp decline in fuel subsidy for the agricultural sector. Fuel subsidy in 2020-21 stood at Rs 38,454 crores. It is Rs 6517 crore for the current fiscal. The figure is Rs 5812 crore for next year. Fertiliser-pesticide Subsidy Fund has been cut by 25 percent. Urea Subsidy has been reduced to Rs 63,222 crores from Rs 75,9300 earlier.
Employment Guarantee Scheme : Following Covid pandemic, the rural sector is the verge of collapse giving rise to a mega segment of people under starvation. Even so, the Budget has cut allocation for Employment Guarantee Scheme(EGS). While Rs 1.11 lakh crore was allowed toward EGS in 2020-21, the current Budget provides for just Rs 78,000 crores.
Food Subsidy : Food subsidy, that should have been upped to allay starvation, has instead been reduced. The subsidy that figured at Rs 2.86 lakh crore in 2020-21 has been slashed to Rs 2 lakh crores this crore this time – an indication of government attitude toward the starving population
On Brink Of Collapse : Agricultural sector has been the biggest casualty of globalisation and economic reforms. World Trade agreements sealed in the 90s are tugging at the agri sector dragging it back. Plan, back then, was a total removal of subsidies in the agricultural sector. Following strong protests, several countries were forced drop the idea and several measures, passed of in the name of reforms, became withdrawn.
Avenging protest gains: A slave to corporate imperialism, the Congress is almost non-existent on the national politics front. BJP that came to power claiming there was no better alternative, continues in the same fashion. The Modi govt was forced to repeal anti-farmer laws when the community put up daunting protests. However, the government appears to have had its revenge in more ways than one through its Budget.
The Budget gives an impression of government avenging the farmers for the victory via unified protests, said All India Kissan Sabha. The Modi government is likely pushing farmers into another wave of protests.
