In the first budget of Modi 3.0, the Finance Minister highlighted nine key priorities, with agriculture being a major focus. Several major announcements were made for the agriculture sector, emphasizing increased productivity and developing climate-resilient crop varieties. To support these initiatives, the agriculture research budget has been increased. The Finance Minister allocated ₹1.51 lakh crore for agriculture and related sectors, compared to ₹1.40 lakh crore in the 2023-2024 budget. The budget also aims for self-reliance in oilseeds, the development of vegetable production centers, and digital infrastructure for farming. Experts believe this budget will accelerate growth in the agriculture sector, although there is some disappointment over the lack of measures to increase farmers’ income and ensure MSP procurement.
Focus on Agricultural Research and Climate Resilience
The 2024-25 Union Budget includes various measures to enhance productivity and develop climate-resilient crops, promoting natural farming and a national cooperative policy. The Finance Minister announced a comprehensive review of the agricultural research system, with government and sector experts overseeing the research. The budget also introduced 109 high-yield and 32 climate-resilient crop varieties.
Dr. Shailendra Kumar, Cluster Leader at the International Crops Research Institute for the Semi-Arid Tropics, noted the significant announcements for the agriculture sector. He emphasized the importance of increased funding for research and the development of weather-resistant crop varieties, given the current challenges posed by climate change. Developing vegetable clusters and bio-input centers are also expected to benefit the sector significantly. However, the implementation of these schemes will be crucial.
Implementation and Skilled Personnel
Last year’s budget promised large-scale warehouse construction in cooperative mode, which is yet to see substantial progress. The agriculture sector requires skilled personnel, and how the government addresses this need will be important. To increase farmers’ income, reducing production costs, utilizing modern technology, and ensuring fair product pricing are crucial. The government’s approach to balancing these factors will be key.
Support for Natural Farming and Bio-Input Centers
The Finance Minister also announced assistance for one crore farmers in natural farming over the next two years, including certification and branding support. This scheme will be implemented with the help of scientific institutions and willing village panchayats, establishing 10,000 bio-input resource centers. Padma Shri awardee agricultural scientist Ramchet Chaudhary welcomed the focus on natural farming but pointed out the lack of data on farmers practicing it and the absence of government support for them. Ensuring that the benefits of this plan reach ordinary farmers will be a challenge. The MSP for paddy farmers has been increased to ₹2300, a welcome step, but the absence of measures to ensure MSP procurement is disappointing. Developed countries mandatorily purchase farmers’ produce at MSP, a practice India lacks.
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Challenges with MSP Procurement
While the government issues MSP for some crops, procurement is limited to a specific period, benefiting only well-off farmers. Smaller farmers often have to sell their produce to middlemen at lower prices. The Finance Minister stated that the government will introduce a national cooperative policy for systematic and inclusive development, aiming to accelerate rural economic growth and create large-scale employment opportunities.
Expert Opinions and Long-Term Goals
Agricultural policy expert Devendra Sharma appreciated the budget’s focus on promoting natural farming and establishing 10,000 bio-resource centers. However, he felt more could have been done for the agriculture sector. Although the budget provisions are a step in the right direction, immediate relief from the impacts of climate change will take time as new crop varieties undergo research and reach the market. The goal of self-reliance in oilseeds remains unachieved, with India still heavily reliant on palm oil imports, comprising about 43% of its edible oil needs. Encouraging farmers to increase oilseed production through modern technology and better prices is crucial. The guarantee of MSP remains the biggest demand of farmers, unaddressed in the budget.
In Chhattisgarh, farmers receive around ₹3100 per quintal MSP for paddy, while elsewhere it’s ₹2300 per quintal. The expectation was for a uniform MSP across the country. The government’s emphasis on digitization in farming may benefit corporations more than farmers. The Finance Minister also set a goal for self-reliance in pulses, focusing on production, storage, and marketing.
Financial Assistance and Extended Programs
The budget provides financial assistance for establishing a network of shrimp brood-stock nucleus breeding centers, with funding through NABARD for shrimp farming, processing, and export. The Finance Minister also announced higher minimum support prices for major crops, ensuring at least a 50% margin over cost. The budget extends the Pradhan Mantri Garib Kalyan Anna Yojana for another five years, benefiting over 80 crore people.
