Several agricultural groups requested Finance Minister Arun Jaitley, during their pre-Budget consultative meeting on Saturday, to provide sufficient funds to district co-operative banks in the light of demonetisation since most farmers had their accounts in such banks.
The agricultural representatives also called for new schemes in the upcoming Budget to bail out farmers from debt and a system where banks offer differential rates of interest for the agricultural sector, according to an official release.
Other suggestions included the announcement of awards for those who make technological innovations in the agriculture sector, the provision of cold storage infrastructure for horticulture and a higher Budget allocation for agriculture.
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Mr. Jaitley agreed that there should be a focus on increasing productivity in agriculture in order to ensure future increases in agriculture output and to double farmers’ income by 2022, given the limitations in expanding crop area.
The Minister also said that states needed to reform the Agricultural Produce Market Committee Act so that the more than 550 regulated mandis across the country can be integrated by 2017 and the national agriculture market can become more efficient. “The Finance Minister said it is possible by leveraging technology, especially for high-yielding and resistant variety seeds and efficient utilisation of water for irrigation, adapt the latest IT to increase resilience by phased sowing, watering and harvesting,” the release said.