Agri sector: No fireworks in the short term -Rajalakshmi Nirmal

-The Hindu Business Line

However, PM Kisan Samman Nidhi Yojana will give instant relief to the rural India, improving demand for agri inputs

BJP’s election manifesto promised many things for farmers. Now that it is clear that the NDA-led coalition is going to be back in power, companies in the agri space — manufacturers of seeds, fertilisers, agro-chemicals and farm equipment — will stand to benefit.

However, do not expect fireworks immediately.

Had it been UPA, the promised farm loan waiver across the country would have given a booster shot to sentiments and there would have been instant lift in demand for agri inputs and FMCG.

Now, with NDA, there is not much benefit that may flow immediately. But for the Pradhan Mantri Kisan Samman Nidhi Yojana which promises to put some cash in the hands of every farmer, all other promises made by BJP are measures that will bear fruit only in the long term.
 

 

The BJP manifesto had promised doubling income of farmers by 2022. For this, it has outlined an investment of Rs. 25 lakh crore to improve farm productivity and build an efficient storage and transport mechanism for agri produce. It further promised to create at least 1,000 farmer producer companies, digitise land records by setting a deadline date and expand the PM Krishi Sinchayi Yojana to realise 100 per cent irrigation potential. There was also a promise to give a helping hand to farmers by providing interest-free loans up to Rs.1 lakh on KCC (Kisan Credit Card).

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