Union Budget 2024: Spotlight on Farmers and Agriculture Overall, agriculture experts have applauded the budget for boosting research, introducing new varieties of crops, promoting natural farming, and empowering the Atmanirbharta initiative

The agricultural sector plays a major role in the Indian economy since it contributes approximately 17 per cent to the total Gross domestic product (GDP) and provides employment for around 58 per cent of the population in the country. During the interim budget, the BJP government emphasized four major focuses: the poor ('Garib'), women ('Mahilayen'), youth ('Yuva'), and farmers ('Annadata').

Focusing on farmers, today, FM said the government already announced higher Minimum Support Prices (MSP) for all major crops a month ago, delivering on the promise of at least a 50 per cent margin over costs. This move came after a long fight by the farmers, particularly in the northern region.

Last year's budget was focused on technological adoption and public-private partnerships to improve farmer incomes and crop productivity. Today, in the Union Budget 2024 (FY 2024-25), INR 1.52 lakh crore has been allocated for agriculture and allied sectors—focusing on seven critical themes.

Boosting Agricultural Research

To increase productivity and develop crop varieties that can withstand climate change, the government will undertake a comprehensive review of the agriculture research setup. Additionally, the government will provide funding in challenge mode, including to the private sector. Experts from within the government as well as from outside will supervise the research to ensure it is done effectively and leads to practical results that can help farmers.

Introducing New Crop Varieties

To help farmers grow more efficiently, the government will release 109 new high-yielding and climate-resilient varieties of 32 different crops. This move is expected to help farmers produce more and cope better with changing weather patterns.

Promoting Natural Farming

To promote chemical-free farming in the country, the government plans a road map for the next two years. Under this, one crore farmers will be introduced to natural farming practices. This initiative will be supported by certification and branding to ensure quality and market acceptance. Scientific institutions and willing village councils (gram panchayats) will lead this effort, establishing 10,000 bio-input resource centers to support farmers in the transition.

Pushing for 'Atmanirbharta' in Pulses and Oilseeds

The government aims to make India self-sufficient in several pulses and oilseeds including mustard, groundnut, sesame, soybean, and sunflower. To achieve this, the government will focus on boosting production, improving storage facilities, and enhancing marketing strategies.

Enhancing Vegetable Production and Supply Chains

The government will develop large-scale clusters for vegetable production near major consumption centers to ensure a steady supply of fresh vegetables. Also, it will support Farmer-Producer Organizations, cooperatives, and start-ups to improve the collection, storage, and marketing of vegetables.

Supporting Shrimp Production and Export

In 2023-24, India exported 17,81,602 metric tons of seafood worth INR 60,523.89 crore, with frozen shrimp being the top export in both quantity and value. To boost shrimp production, the government will provide financial support to set up Nucleus Breeding Centres for shrimp broodstocks. NABARD will help finance shrimp farming, processing, and export to strengthen the shrimp industry and increase exports. The USA and China were the biggest importers of India's seafood.

Digital Public Infrastructure for Agriculture

The government announced that it will roll out Digital Public Infrastructure (DPI) in the agriculture sector over the next three years in partnership with the states. This initiative will cover farmers and their lands, with a digital crop survey for Kharif planned in 400 districts this year. Information about 6 crore farmers and their lands will be added to registries, and Jan Samarth-based Kisan Credit Cards will be issued in five states.

DPI can transform the agriculture technology (AgTech) sector by providing access to accurate data and safe and trustworthy data-sharing mechanisms. Additionally, it democratizes data access and helps companies to build innovative applications to deliver tech-enabled services.

Overall, agriculture experts have applauded the budget for boosting research, introducing new varieties of crops, promoting natural farming, and empowering the Atmanirbharta initiative. Shashank Singh, Founder, Poshn said "1.5 trillion INR for agri and allied sectors provides a strong impetus to the food ecosystem and will go a long way in making this sector 'Atmanirbharta' and this is a huge booster for the cash-strapped MSME ecosystem."

"By prioritizing agricultural research focused on climate-resilient crop varieties, it aims to bolster future food security and mitigate inflation risks. The substantial outlay of INR 1.52 lakh crore for the agricultural economy is a positive move for rural demand. The announcement of 'Annadata,' highlighting higher Minimum Support Prices (MSP) for all major crops fulfills the promise to support farmers. Additionally, the PM Garib Kalyan Anna Yojana has been extended for five more years, benefiting over 80 crore," Saroj Kumar Mahapatra, Executive Director, PRADAN added.

Further, Gayatri Nair Lobo, CEO, ATE Chandra Foundation said "It is extremely heartening to see the government's commitment towards regenerative agriculture and natural farming. The Honourable Finance Minister's move to initiate 1 crore farmers into this form of farming and offering support to them by removing the bottlenecks related to branding, certification, and availability of inputs via 10,000 bioresource centers would be extremely beneficial to farmers and all Indians. On the one hand, it would reduce the cost of transition for farmers, thereby ensuring a significant reduction of chemicals in the food that reaches our table, and the positive impact this will have on the environment."