Budget 2018: Testimony For The Farmer's Within The Realm Of Possibility

The first hour of Arun Jaitley’s Budget speech in the parliament during the railway budget was mostly about famers, rural livelihood and social security.

A slew of announcements, including minimum support price for farmers, easily accessible markets, disposal of crop residue, development reforms were made in the speech were the aggregates of the budget 2018.

With respect to farmers, the Union Budget 2018 has put emphasis on staying true to government’s promise of doubling farmers’ income.

To this end, Jaitley kept minimum support price or MSP of kharif crops at one and a half times the production cost of the crops. Minimum Support Price is the price at which government purchases crops from farmers.

MSP Kept at 150 percent of Production Cost

Arun Jaitley announced that the minimum support price for all the unannounced Kharif crops will be kept at least 150 per cent of their production cost. As of now, most of the rabi crops get one and a half times their production cost as MSP. The remaining rabi crops will also be brought under the aegis of this decision.

If the market prices are lower than the prescribed prices, then either government will have to buy the crops from farmers on MSP or ensure a mechanism where farmers are paid their due, Jaitley said during his fifth Union Budget speech.

Upgrading Local Agri Markets, Expanding E-NAM Network

Jaitley announced a total of 22,000 rural haats will be upgraded for the benefit of small farmers. These will be turned into Gramin Agricultural Markets (GrAMs) where farmers can sell their produce directly to consumer and bulk purchasers. The government also plans to strengthen physical infrastructure at these local agri markets through MGNREGA and other government schemes.