The Budget's proposals to boost irrigation, agri-research and food processing have been received well by the industry.
National Collateral Management Services (NCML) Managing Director and CEO Sanjay Kaul said: "The expectation that there would be a special thrust to the agriculture and food sectors in the Budget has been belied."
"The determination to deal with spiralling prices does not appear to have been a priority for the government. It is also surprising that the Finance Minister did not announce any short-term measures to tackle food inflation," he said.
However, the marginal reduction in excise duties in the food processing sector and extension of the Nabard RIDF loan scheme for warehousing infrastructure is welcome.
"Reduction in excise duty on food processing machineries is welcome. Industry has specifically suggested treating processed food products at par with agri produce with nil rate of excise duty... Same has not found any favour in this Budget, this would only lead to inflation," said Piruz Khambatta, Chairman, Rasna Pvt Ltd.
Hailing the Budget proposals, commodity exchange NCDEX Managing Director and CEO Samir Shah said: "Efforts to remove inefficiencies and anomalies in the underlying physical market is a big positive for the futures market."
Commodity brokerage firm Religare Securities President (Retail Distribution) Jayant Manglik said, "With Monsoon reports still not favorable, the government has made a few notable decisions which would have a long-term beneficial impact on the agriculture sector."
SLCM Group CEO Sandeep Sabharwal said, "It is a good initiative on part of the government. The allocation reflects that the government is addressing the issues in the agri-markets. There is emphasis on scientific infrastructure."
"The government has rightly acknowledged the need for investment in agro-technology. Rs 100 crore for research and development in agriculture is a positive step that we hope will pave way for taking our agricultural sector to a new paradigm," Insecticides India Ltd MD Rajesh Aggarwal said.
Giving similar views, Deepak Fertilisers Executive Director Partha Bhattacharyya said, "The Budget will give a reasonable boost to the agri-sector. The growth expectation of four per cent in the sector and additional allocation of subsidy for fertiliser business will have a definitive positive impact.
