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Budget to focus on Irrigation?|STOCK FUTURE TIPS|EQUITY RESEARC

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     Irrigation system has long been a problem area in India. Indian agriculture is dependent on vagaries of monsoon. Unfortunately less than 50% of net sown area in India is under irrigation. This goes to show the plight of the agriculture system in India. 

    • Agriculture still remains the sector that continues to generate maximum employment. For such an important sector to be highly inefficient does not augur well for teh economy.

     

    • Investors can expect several measures in the Union budget 2017-18 to boost irrigation and agriculture sector.
    • In the previous budget the government had allocated Rs 20,000 cr to the sector. Government had created a long term fund of Rs 20000 cr in NABARD.
    • Government in the current budget may increase the funds allocated to the sector.

     

    • The other problems faced by the agriculture sector are the small size of holdings. At present medium and large holdings account for less than 5% of the aggregate land even though they comprise 1/3rd of the total area.

     

    • Fragmented area or holdings have been impacting the agriculture sector productivity. This has led to agriculture sector contributing only 16% to the India's GDP even though 60% of India's population is dependent on the sector.

     

    • Stocks that are exposed to the agriculture sector will be in focus expecting some big bang announcement in the budget for the agriculture sector. 

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