Rating agency CRISIL has stated that the Centre requires to enlarge the irrigation coverage, give a big push to crop insurance and make agriculture remunerative.
Ahead of the Union Budget proposals, it has also suggested extending the Direct Benefits Transfer scheme to food and fertilizer subsidies, and generating non-farm employment.
In the 2015-16 Budget, the government has set aside Rs 5,000 crore for micro-irrigation, watershed development and the Pradhan Mantri Krishi Sinchai Yojana. “Such spending needs to be encouraged and linked to employment generation. Focus on irrigation will require the government to deploy sustainable micro-irrigation schemes and creation of assets for rainwater harvesting and storage,” CRISIL said.
CRISIL said that in many pulses crops, the dissimilarity between the cost of cultivation and output price had widened.