07 - Union Budget
Agriculture & Food Management07CHAPTER(Who have the shade of cornful crestUnder their umbra umbrella rest.)—ThiruvalluvarThe resilience of India’s agriculture sector can be seen from the fact that despite theCOVID-19 pandemic, its performance in output was strong. About 54.6 per cent of thetotal workforce in the country is still engaged in agricultural and allied sector activities(Census 2011) which accounts for approximately 17.8 per cent of the country’s GrossValue Added (GVA) for the year 2019-20 (at current prices). While the difficulties createdby COVID induced lockdowns adversely affected the performance of the non-agriculturalsectors, the agriculture sector came up with a robust growth rate of 3.4 per cent atconstant prices during 2020-21 (first advance estimates). The sector has got renewedthrust due to various measures on credit, market reforms and food processing under theAtma Nirbhar Bharat announcements. Various interventions of the Government for thedevelopment of allied sectors including animal husbandry, dairying and fisheries exhibitits resolve towards tapping the potential of allied sectors to further enhance farm welfare.In addition to various measures aimed at increasing productivity and improving marketingof agricultural produce, the Government also carries out a large food managementprogramme with a significant financial implication in terms of food subsidy. Under thePradhan Mantri Garib Kalyan Anna Yojana, 80.96 crores beneficiaries were providedadditional foodgrains, i.e. above the NFSA mandated requirements, of 5 kg per personper month free of cost till November, 2020. Over 200 LMT of foodgrains were providedamounting to a fiscal outgo of over 75000 Crores. Also, under Atma Nirbhar BharatPackage, 5 kg per person per month was distributed for four months (May to August) tobenefit approximately 8 crores migrants who are not covered under NFSA or state rationcard entailing subsidy of 3109 crores approximately.INTRODUCTION7.1 COVID-19 pandemic has influenced the lives of people across the globe and India is noexception to that. The farming activities also experienced the impact of this pandemic as theCOVID induced lockdowns influenced the movement of farm inputs including farm machineryfrom one location to other. The national lockdown coincided with the commencement of theharvesting season for the Rabi crops creating further adversity for the sector. Migration ofagricultural labourers to their native places during the lockdown created a shortage of farm
Agriculture & Food Management231labourers. India’s agricultural system demonstrated its resilience amid such adversities. Theagriculture and allied sectors were the sole bright spot amid the slide in performance of othersectors, clocking a growth rate of 3.4 per cent at constant prices during 2020-21. Against alladversities due to COVID-19, continuous supply of agriculture commodities, especially stapleslike rice, wheat, pulses and vegetables, has been maintained thereby enabling food security. Inorder to further strengthen and support the agricultural sector, several initiatives have been takenby the Government of India under the Atma Nirbhar Bharat Abhiyan (Box 1).Box 1: Major Announcements for Agriculture and Food Managementunder the Atma Nirbhar Bharat AbhiyanAnnouncementObjectives 1 lakh crores Agri InfrastructureFundFinancing will be provided for funding agricultureinfrastructure projects at farm-gate & at aggregationpoints and for financially viable post-harvest managementinfrastructure. 10,000 crores scheme forFormalisation of Micro FoodEnterprises (MFE)Aiding 2 lakh MFEs who need technical upgradation toattain FSSAI food standards, build brands and supportmarketing. 20,000 crores for fishermanthrough Pradhan Mantri MatsyaSampada Yojana (PMMSY)It aims at integrated, sustainable and inclusive developmentof marine and inland fisheries by developing infrastructuresuch as fishing harbours, cold chain, markets, etc.National Animal Disease ControlProgrammeIt targets Foot and Mouth Disease (FMD) and Brucellosisby ensuring 100 per cent vaccination of cattle, buffalo,sheep, goat and pig population.Animal Husbandry InfrastructureDevelopment Fund - 15,000croresIt is to support private investment in dairy processing,enable value addition and improved cattle feedinfrastructure.From ‘TOP’ to TOTAL“Operation Greens” run by Ministry of Food ProcessingIndustries (MOFPI) to be extended from tomatoes, onionand potatoes to ALL fruit and vegetables.Reforms in Essential CommoditiesAct, Agriculture Marketing andAgriculture Produce Pricing andQuality AssuranceThese legislative reforms seek to remove agriculturalcommodities such as cereals, pulses, oilseeds etc. fromthe list of essential commodities and aim to reformagricultural marketing.PM Garib Kalyan Ann YojanaThe scheme aimed at ensuring food and nutritional securityto around 80 crores ration card holders who were affecteddue to the COVID-19 induced national lockdown.One Nation One Ration CardSchemeThis scheme will enable migrant workers and their familymembers to access PDS benefits from any fair price shopin the country.
232Economic Survey 2020-21 Volume 2OVERVIEW OF AGRICULTUREGross Value Added in Agriculture7.2 As per the provisional estimates of national income released by CSO on 29th May, 2020,the share of agriculture and allied sectors in Gross Value Added (GVA) of the country at currentprices is 17.8 per cent for the year 2019-20. GVA of agriculture and allied sectors and its sharein total GVA of the country during the last six years at current prices is as given in Table 1.Table 1: Share of Agriculture and Allied Sectors in Total GVA at current pricesYear2014-15 2015-16 2016-17* 2017-18# 2018-19@ 2019-20**ItemsShare of GVA of Agriculture &Allied Sector in GVA of TotalEconomy (per cent)18.217.718.018.017.117.8Share of Crops11.210.610.610.49.4NAShare of Livestock4.44.64.85.15.1NAShare of Forestry & logging1.51.51.51.41.3NAShare of Fishing & aquaculture1.01.11.11.21.2NASource: Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW).Note:**As per the Provisional Estimates of Annual National Income 2019-20 released by CSO on 29th May 2020.@As per the First Revised Estimates of National Income, Consumption Expenditure, Saving and capital Formationfor 2018-19 released on 31st January, 2020. # Second Revised Estimate. * Third Revised Estimate.NA- Data not available.7.3 The share of agriculture and allied sectors in GVA of the country has declined from 18.2 percent in 2014-15 to 17.8 per cent in 2019-20 (Table 1), an inevitable outcome of a developmentprocess in which the relative performance of non-agricultural sectors becomes more dominant.Within the agriculture sector, the share of crops has fallen from 11.2 per cent in 2014-15 to 9.4per cent in 2018-19. The decline in the share of crops has been made up by an increase in theshare of livestock and fisheries sectors.Figure 1: Share of Agriculture and Allied Sectors in Total GVAof the Country at Current Prices (in per cent)*121011.210.6 10.6 10.49.4865.1 5.14.4 4.6 4.841.5 1.5 1.5 1.4 1.320Share of Crops2014-15Share of Livestock2015-162016-17*1Share of Forestry & logging2017-18#2018-19@1.1 1.1 1.2 1.2Share of Fishing &aquaculture2019-20 **Source: Created from the data in Table 1.*All the symbols attached with the years in the graph denote the same as indicated in Table 1.
Agriculture & Food Management233Growth in Agriculture & Allied Sectors7.4 The growth in GVA of agriculture and allied sectors has been fluctuating over time (Figure2). However, during 2020-21, while the GVA for the entire economy contracted by 7.2 per cent,growth in GVA for agriculture maintained a positive growth of 3.4 per cent.Figure 2: Growth of GVA of Economy and Agriculture & AlliedSectors at Constant (2011-12) Prices (In per 0**3.42020-21***-4-7.2-6-8Growth of GVA of Total EconomyGrowth of GVA of Agriculture & Allied Sector (per cent)Source: Based on data received from DAC&FW.Note: **As per the Provisional Estimates of Annual National Income 2019-20 released by CSOon 29th May 2020. @As per the First Revised Estimates of National Income, ConsumptionExpenditure, Saving and capital Formation for 2018-19 released on 31st January, 2020. # SecondRevised Estimate. * Third Revised Estimate. *** First Advance Estimates of National Incomereleased on 7th January, 2021.Gross Capital Formation7.5 Gross Capital Formation (GCF) in the agriculture and allied sector as a proportion to GVAhas been showing a fluctuating trend from 17.7 per cent in 2013-14 to 16.4 per cent in 2018-19,with a dip to 14.7 per cent in 2015-16. The share of GCF of the agriculture & allied sector toGVA of agriculture & allied sector for the years 2013-14 to 2018-19 at 2011-12 basic prices isshown in Figure 3.Figure 3: GCF of Agriculture & Allied Sector as percentage ofGVA of Agriculture & Allied Sector (at 2011-12 basic : Based on data received from DAC&FW.@As per the First Revised Estimates of National Income, Consumption Expenditure, Saving andcapital Formation for 2018-19 released on 31st January, 2020. # Second Revised Estimate. * ThirdRevised Estimate.
234Economic Survey 2020-21 Volume 2Production of Crops7.6 In the year 2019-20 (as per fourth advance estimates), total food grain production inthe country is estimated at record 296.65 million tonnes which is higher by 11.44 milliontonnes than the production of food grain of 285.21 million tonnes achieved during 201819. Further, the production during 2019-20 is higher by 26.87 million tonnes than theprevious five years’ (2014-15 to 2018-19) average production of 269.78 million tonnes. Adiagrammatic trend in output of major crops for the last five years are shown in Figure 4and Figure 5.Figure 4: Trend in Production of Rice and Wheat Crops (Quantity in Million 8-192019-20*WheatSource: Created from the data of the 1st Adv. Estimate released dated 22.09.2020*4th Advanced Estimates.Figure 5: Trend in Production of Other Major Crops (Quantity in Million rse Cereals2017-18Pulses2018-19OilseedsCotton@Source: Created from the data of the 1st Adv. Estimate released dated 22.09.2020*4th Advanced Estimates. @ Production of cotton is in million bales.2019-20*
Agriculture & Food Management235Agricultural Credit7.7 Given the large proportion of resource constrained small and marginal farmers in India,timely availability of adequate credit is fundamental for the success of farming activities.The agricultural credit flow target for the year 2019-20 was fixed at 13,50,000 crores andagainst this target the achievement was 13,92,469.81 crores. The agriculture credit flowtarget for 2020-21 was fixed at 15,00,000 crores and till 30th November, 2020 a sum of 9,73,517.80 crores was disbursed. The Agriculture Infrastructure Fund announced as a part ofAtma Nirbhar Bharat Abhiyan will further boost credit flow to the agriculture sector (Box 2).The regional distribution of the agricultural credit has, however, been skewed in favour of theSouthern Region. The share of north-eastern states has been very low (Map 1).Map 1: Regional Distribution of Agricultural Credit in India in 2020-21.Source: Based on data received from DAC&FW7.8 During the year 2020-21, in the total disbursement as on 30th November, 2020, the shareof southern region in agricultural credit was more than 40 per cent while it was less than 2 percent for the north-eastern region (NER). This low coverage of the agricultural credit in NER isbecause the total cultivable area in North Eastern States is only about 2.74 per cent of the totalGCA of the country. Moreover, community ownership of land is prevalent in most of the NEStates. These two factors affected the intake of Kisan Credit Card (KCC) loans in NER as theseloans are given against land documents. The credit disbursement in the agriculture sector is infact positively related to gross cropped area as shown in Figure 6.
236Economic Survey 2020-21 Volume 2Figure 6: Credit Disbursement and Gross Cropped Area are Positively Related7.75Log (Total Crop PRADESH2.533.5Log (Gross Cropped Area)44.5Source: Based on data received from DAC&FWBox 2: Agriculture Infrastructure FundHon’ble Finance Minister on 15.05.2020 announced a 1 lakh crore Agriculture Infrastructure Fundfor creation of farm-gate infrastructure for farmers. Accordingly, central sector scheme of financingfacility under Agriculture Infrastructure Fund was formally launched by the Hon’ble Prime Ministerof India on 09.08.2020.This scheme is operational from the year 2020-21 to 2029-30. The scheme provides for medium tolong term debt financing facility for investment in viable projects for post-harvest managementinfrastructure and community farming assets Under the scheme, 1 lakh crores will be provided bybanks and financial institutions as loans to primary agricultural credit societies (PACS), marketingcooperative societies, farmer producers organizations (FPOs), self help group (SHG), farmers, jointliability groups (JLG), multipurpose cooperative societies, agri-entrepreneurs, startups and central/state agency or local body sponsored public private partnership project, etc.All loans under this financing facility will have interest subvention of 3 per cent per annum up to alimit of 2 crores. This subvention will be available for a maximum period of 7 years. Further, creditguarantee coverage will be available for eligible borrowers from this financing facility under CreditGuarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to 2 crores.Memorandum of Understandings (MoUs) with all 12 public sector banks and 11 private sectorbanks have been signed by DAC&FW. A portal for the scheme has been created. As on 15.01.2021, 2991 crores has been ‘in principle’ sanctioned under the scheme to 3055 PACS by NABARD.PACS have submitted 3774 applications for loan amount of 2741 crores. 1695 applications havebeen received through the portal from entities other than PACS of which 964 applications seekingloan of 934 crores have been prima facie found eligible and sent to respective banks. Out of 964applications, 230 have been sanctioned a loan amount of 235 crores by banks.
Agriculture & Food Management237International Trade in Agricultural Commodities7.9 In 2019-20, India’s agricultural and allied exports amounted to approximately 252thousand crores. The major export destinations were USA, Saudi Arabia, Iran, Nepal andBangladesh. The top agriculture and related products exported from India were marine products,basmati rice, buffalo meat, spices, non-basmati rice, cotton raw, oil meals, sugar, castor oil andtea. While India occupies a leading position in global trade of aforementioned agri- products, itstotal agri-export basket accounts for a little over 2.5 per cent of world agri-trade.7.10 Since economic reforms began in 1991, India has remained a net exporter of agri-products,with agri-exports touching 2.52 lakh crores and imports at 1.47 lakh crores in FY 2019-20.An analysis of last six years of the share of top ten agricultural commodities in total value ofagricultural export shows that there have been significant changes in the composition of agriexports (Figure 7). The share of marine products in total agricultural export value has remainedthe largest over the period. Its share in total agricultural export value increased from 14.5 percent in 2015-16 to close to 19 per cent in 2019-20. The share of basmati rice in total agriculturalexport value has also shown an increasing trend during the period. Other commodities that havewitnessed an increasing trend during the period are non-basmati rice, spices and sugar. Theshares of the commodities such as buffalo meat and raw cotton in total agricultural export valuehave, however, declined during the period. The shares of the commodities such as castor oil andtea have remained more or less stable over this period.Figure 7: Trend in the Share of Agricultural Commodities in Total Value of Agri-export (per ne ProductsRice BasmatiSpicesBuffalo MeatNon-Basmati RiceSugarRaw CottonCastor OilOil MealsTeaSource: Based on data received from DAC&FW.* Upto November, 2020.Minimum Support Price (MSP)7.11 The Union Budget for 2018-19 had announced that MSPs would be kept at the level of1.5 times of the cost of production. On the basis of the above-mentioned principle, Governmentrecently increased the MSPs for all mandated kharif and rabi crops for 2020-21 season.
238Economic Survey 2020-21 Volume 2MSP of Kharif Crops7.12 On 1st June, 2020, the Government had announced the increase in MSP for kharif cropsfor marketing season 2020-21. The highest increase in MSP announced is for nigerseed ( 755per quintal) followed by sesamum ( 370 per quintal), urad ( 300 per quintal) and cotton (longstaple) ( 275 per quintal). The expected returns to the farmers over their cost of production areestimated to be highest in the case of bajra (83 per cent) followed by urad (64 per cent), tur (58per cent) and maize (53 per cent). For the rest of the crops, return to farmers over their cost ofproduction is estimated to be at least 50 per cent (Figure 8).Figure 8: Cost, MSP & Returns of Kharif Crops of year 030005050506050402000100030020Returns over cost (in %age terms)Cost & MSP (Rs per quintal)8000edseCost*MSP% Return over CostSource: DAC&FW* Includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers,manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital,diesel/electricity for operation of pump sets etc, miscellaneous expenses & imputed value of family labour.MSP of Rabi Crops7.13 On 21st September, 2020 the Government had announced the MSPs for all mandated rabicrops for marketing season 2021-22. The highest increase in MSP has been announced forlentil ( 300 per quintal) followed by gram and rapeseed & mustard ( 225 per quintal each)and safflower ( 112 per quintal). For barley and wheat, an increase of 75 per quintal and 50 per quintal respectively has been announced. The expected returns to the farmers overtheir cost of production are estimated to be highest in case of Wheat (106 per cent) followed byrapeseed & mustard (93 per cent), gram and lentil (78 per cent). For barley, return to farmersover their cost of production is estimated at 65 per cent and for safflower, it is 50 per cent(Figure 9). The differential in remuneration is aimed at encouraging crop diversification.
Agriculture & Food 0Cost*MSP1201101009080706050403020Returns over cost (in per cent)Cost & MSP ( per quintal)Figure 9: Cost, MSP & Returns of Rabi Crops of year 2020-21% Return over CostSource: DAC&FW* Includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers,manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital,diesel/electricity for operation of pump sets etc, miscellaneous expenses & imputed value of family labour.Crop Insurance7.14 Pradhan Mantri Fasal Bima Yojana (PMFBY) is a milestone ini
process in which the relative performance of non-agricultural sectors becomes more dominant. Within the agriculture sector, the share of crops has fallen from 11.2 per cent in 2014-15 to 9.4 per cent in 2018-19. The decline in the share of crops has been made up by an increase in the share of livestock and fisheries sectors.
Budget (Annual Budget) Revenues Expenses Multi-year (Actual; Budget; Budget) Project (program) Budget A project budget is the estimated financial plan for a project, for which funding is required. The total program budget is not just the grant r
Apr 23, 2019 · The budget narrative, sometimes called the budget justification, is a companion to the budget (table, spreadsheet, or forms). While the budget table gives the total cost for each category of the budget, the budget narrative giv
Feb 09, 2012 · Budget Detail Worksheet . Purpose: The Budget Detail Worksheet may be used as a guide to assist you in the preparation of the budget and budget narrative. You may submit the budget and budget narrative using this form or in the format of your choice (p
Examples of items that can be included in the cost share portion of the budget form: . those in the Excel budget form! . teams must select the “AEIF Budget Form” link to download the Excel budget spreadsheet. Please only use this form. Enter all the budget details on the form, save it on your computer, and upload it to your proposal .
YTD budget equals the cumulative pro-rated budget (according to user’s budget spread) through report month queried. For example, if a report is run after the March close, the YTD Budget column will equal monthly budgets from July through March plus BMRs processed through March. The FY Total Budget will equal the loaded budget and year-to-date .
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2. This budget will become the initial adopted 2020-21 budget. 3. We are able to balance the budget for the next two years and have yet to resolve the third year. 4. Revised budget to reflect revisions to the Enacted State Budget will be presented to the Board in August. 5. Continue to advo
budgets that represent greater than 50% of the overall marketing budget. These findings align with a lack of budget being listed as a top challenge to the success of an ABM strategy. 62% 25% 10% 3% less than 25% of the marketing budget 25% - 49% of the marketing budget 50% - 74% of the marketing budget More than 75% of the marketing budget
