Agricultural sector &

its external factors

Impact of Union-Budget 2013-14 on

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

Union-Budget of India

It is the annual financial statement of the country presented by the Finance minister of India.

Union-Budget 2013-14:

• Agriculture or Primary sector• Industry/Manufacture or Secondary sector• Service or Tertiary sector

Sectors of Indian Economy:

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.

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.

External factors affecting agricultural sector

Environmental Factors

Cultural Factors

Economic Factors

Environment Factor/Physical Factor:

Temperature

Precipitation / Water Supply

Altitude

Wind

Socio-Cultural Factors Affecting Farming:

Land Tenure

Economic Factors Affecting Farming: Transport Markets Technology Governments

Forces Affecting Change in Crop Production Agriculture

Drivers of Change for the Industry

Growing and Diversified Demand

Technology

Resource Availability

Societal Influences