Budget 2024: FM allocates ₹1.52 Lakh crore for agriculture, 109 new crop varieties

Finance Minister Nirmala Sitharaman has announced a substantial budget allocation of ₹1.52 lakh crore for agriculture and allied sectors in the fiscal year 2025, a 21.6% increase from last year’s ₹1.25 lakh crore, emphasizing the government’s commitment to enhancing agricultural productivity, promoting sustainability, and supporting the rural economy.

The budget includes a significant initiative to introduce 109 high-yielding, climate-resilient crop varieties across 32 types, equipping farmers to tackle climate change challenges. The new varieties are designed to be more resilient to extreme weather and pests, promising improved yields and stability.

The government will promote natural farming practices, initiating nearly one crore farmers into these methods over the next two years. This approach emphasizes organic farming and reduces reliance on chemical inputs to foster a sustainable agricultural system. To support this, 10,000 bio-input centres will be established, providing farmers with resources and knowledge.

To bolster the agricultural sector, the government plans to strengthen the production, storage, and marketing of oilseeds. Large-scale vegetable production clusters will be developed near consumption centres to streamline the supply chain and reduce transportation costs to ensure fresh produce reaches consumers efficiently and at lower costs.

A digital crop survey for Kharif crops will be conducted in 400 districts during FY25 to improve crop management by providing accurate data on crop types, yields, and growing conditions. The digital approach will enhance crop monitoring and planning, facilitating better management practices for farmers.

The government will provide financing for shrimp farming, processing, and export through NABARD to strengthen the marine products sector. By improving financial backing, the government aims to boost the shrimp industry’s global competitiveness.

Minimum Support Price

Despite increased budget allocation, no new announcements were made regarding the Minimum Support Price (MSP), a significant demand from farmers. The Finance Minister noted the government increased the MSP of 14 Kharif crops in June, adding a burden of ₹2 lakh crore, ₹35,000 crore more than the previous season. The MSP, which the government believes should be at least 1.5 to 2 times the cost of the crop, covers 24 crops. Kharif crops, including paddy, maize, jowar, bajra, moong, groundnut, sugarcane, soybean, urad, tuar, kulthi, jute, flax, and cotton, are sown in June-July and harvested in September-October.

The Kisan Samman Nidhi, which provides ₹6,000 annually to farmers in three instalments of ₹2,000, will remain unchanged despite calls for an increase. The government has opted to maintain the current amount. The scheme has benefitted over 9 crore farmers, with the 17th instalment recently released.

The budget includes measures to enhance self-sufficiency in pulse production and improve the production, storage, and marketing of edible oil crops like mustard, groundnut, sunflower, and soybean. The government plans to strengthen the vegetable supply chain and enhance digital infrastructure for farmers, including updating the land registry for 6 crore farmers.

Earlier this year, the interim budget allocated ₹1.27 lakh crore to agriculture, supporting initiatives like Nano DAP, dairy development, and the Matsya Sampada Yojana, creating 55 lakh new jobs. The integration of 1,361 mandis under the National Agriculture Market (eNAM) facilitated trade, with volumes reaching ₹3 lakh crore.

India’s agriculture exports have increased by 25% over the past decade. Grain production has risen from 5.08 crore tonnes in 1950-51 to an estimated 32.88 crore tonnes in 2023-24.

The FY25 agriculture budget is a significant investment in innovation, sustainability, and farmer support. While the absence of new MSP announcements is a concern, the outlined measures aim to address challenges and promote long-term growth and stability in Indian agriculture.