Impact of union budget 2013-14 on the agriculture & external sectors

1. Agricultural sector
&
its external factors
Impact of Union-Budget 2013-14 on

2. Points to be discussed:
• Indian Economy at a glance
• Union-budget 2013-14
• Impact on agriculture sector

3. Union-Budget of India
 It is the annual financial statement
of the country presented by the
Finance minister of India.

4. Union-Budget 2013-14:

5. • Agriculture or Primary sector
• Industry/Manufacture or Secondary sector
• Service or Tertiary sector
Sectors of Indian Economy:

6. Impact on Agriculture
• ₹ 270.49 bn allocated to the Ministry of Agriculture, an increase of
22% over the RE of current fiscal year.
• ₹Allocation of ₹34.15 bn for agricultural research.
• For FY14, target of agricultural credit kept at ₹ 7,000 bn.
• Interest subvention scheme for short-term crop loans to be
continued.
• Scheme extended for crop loans borrowed from private sector
scheduled commercial banks.
• ₹10 bn allocated for bringing Green Revolution to eastern India.
• ₹ 5 bn allocated to start a programme of crop diversification that
would promote technological innovation and encourage farmers to
choose crop alternatives.
• Rashtriya Krishi Vikas Yojana and National Food Security Mission
provided ₹ 99.54 bn and ₹ 22.50 bn respectively.

7. Continued:
• Allocation for Integrated watershed programme increased from ` 30.50 bn in FY13 (BE) to ₹
53.87 bn in FY14.
• Allocation made for pilot programme on Nutri-Farms for introducing new crop varieties that
are rich in micro-nutrients.
• National Institute of Biotic Stress Management for addressing plant protection issues will be
established at Raipur, Chhattisgarh.
• The Indian Institute of Agricultural Bio-technology will be established at Ranchi, Jharkhand.
• Pilot scheme to replant and rejuvenate coconut gardens implemented in some districts of
Kerala and the Andaman & Nicobar Islands extended to the entire state of Kerala.
• Matching equity grants to registered Farmer Producer Organization (FPO) upto a maximum
of ₹ 1 mn per FPO to enable them to leverage working capital from financial institutions.
• A Credit Guarantee Fund to be created in the Small Farmers’ Agri Business Corporation with
an initial corpus of ₹1 bn.
• National Livestock Mission to be set up and a provision of ` 3.07 bn made for the Mission.
• Additional provision of ` 100 bn for National Food Security Act.

8. External factors affecting agricultural sector
Environmental Factors
Cultural Factors
Economic Factors

9. Environment Factor/Physical Factor:
 Temperature
 Precipitation / Water Supply
 Altitude
 Wind

10. Socio-Cultural Factors Affecting Farming:
Land Tenure
Economic Factors Affecting Farming:
 Transport
 Markets
 Technology
 Governments

11. Forces Affecting Change in Crop Production Agriculture
Drivers of Change for the Industry
Growing and Diversified Demand
Technology
Resource Availability
Societal Influences