Union budget 2020 is now less than a week away. India policymakers are planning to become a USD 5 trillion sized economy by 2025. For achieving this magic target, economic importance of agricultural sector in India must be understood. Indian economy is based on agriculture. More than 50 percent population depends on agricultural economy.  For developing Indian economy, improving agriculture must be main focus of concern for everyone.

Agriculture sector remains a vital contributor to GDP and the main employment provider in rural economy. Focus must be on tax sops and fiscal planning incentives in the budget. Indian economy is on a downward trend and the major reason behind the problem is agricultural sector.  Overhauling of the agricultural sector and making it sustainable should be the need of the hour.

Government of India has promised to double farmer’s income by 2023 and planned its policies accordingly. Farmers are expecting major announcements which can address their concerns. Farming sector is looking forward for innovative approaches in agri-finance and warehousing sector. To support warehousing sector, government of India must make lending easier, offer tax sops and provide subsidy. This will greatly improve farming sector in India.    

With the help of new Private Entrepreneur Guarantee (PEG) scheme based on PPP model government of India to ensure the growth of agricultural sector. The Government of India should pay attention to address predominant irregularities enlisted which are hampering the growth of the agricultural sector in India:  

• India is a consumption driven market and not an export driven market like China and Singapore. As per report of NSO, half of the population are living in rural areas. Tractors, fertilizers, a range of consumer goods and seeds industry are essential for agricultural sector. Government need to more focus on these items and provide them at a subsidized rate to farmers with less than 5-acre land.
• Small and Marginal Farmers Issues: Government of India need to more focus on Small and marginal farmer’s problems. As NABARD reports, the earnings of small and marginal farm holdings are pathetically low from agriculture sector. Due to the lack of earnings small and marginal farm holdings are under heavy debt and committing suicides.  Therefore, if the Indian economy has to be resurgent, agriculture sector needs more subsidy and small and marginal farmers in India should have access to agri-credit.
• Need to Develop Cooperative Societies for Milk Marketing: Farmers are allowed to earn very little for his produce. Farmers earn as much as 75-85 percent of the market price by selling milk to dairy industry like as AMUL, Mother Dairy and other co-operative dairy industry. Government of India need to develop the cattle variety for milk production and promote the dairy industry through new initiatives of cooperative societies in Indian Agricultural sector.
• Need to develop Vegetables and Fruits market: Indian farmers earn barely 10 percent of the market price for their perishable produces like vegetables and fruits market. Due to lack of organised marketing facilities farmers are losing 40% of their produce. Government of India need to develop a market model to help them in selling perishable items.  Due to poor revenues, farmers are unable to purchase the basic necessity items for sustainable livelihood.
• Develop an Autonomous Body: Farmers want the government to build an autonomous body like NDDB (National Dairy Development Board) which uplifted the farmers and prevented exploitation of farmers by middle men.    
• Reduce the imports in Agriculture sector: As we all know; imports cause domestic prices to fall and directly hurt the farmers. As producers, farmers must be insured. Government must have MSP (Minimum Support Price) in place to help them.  
• Need for more Agri-NBFCs: The role of NBFCs are big for the purpose of rural financing related to agricultural–concerned activities. Government of India need to liberalise the NBFCs policies for providing the easy loan facilities for farmers.
• Irrigation Facility: Farmers in various parts of country are affected by critical flooding. Government of India should focus on water management through linkages of the rivers and provide the subsidy for water conservation in rural area for agrarian purposes. 

If government of India wish the agriculturalists to earn more as profitable business, it must more focus on provisions to earn better price and international market linkages for marketing of their produces. I hope for the best for farming community from upcoming budget 2020.