Farmers get mixed benefits as budget focuses on technology and self-reliance
The country was eagerly waiting for the unveiling of the Union Budget for FY 2024-25 on February 1 and all eyes are on agricultural inputs. Agriculture, which employs more than 50 percent of India’s labor force and contributes significantly to the GDP, holds an important place in the national economy. This achievement reflects the commitment to balanced, scalable and productive growth for all in the agriculture sector. Emphasizing the government’s commitment to various sectors of the agriculture sector, the Department of Fisheries again displays insight into employment generation and promotion of sustainable practices. The main focus of the budget is the Self-reliant Sesame Seed Campaign, which aims to become self-reliant in sesame seeds like mustard, groundnut, soybean, sesame, sunflower etc., which includes research on multiple crop varieties and a comprehensive approach on modern agriculture. The government emphasizes post-harvest activities including strategies, market linkage, procurement, value addition and crop insurance besides private and public investment in collection, modernisation, storage, supply chain, primary and secondary production, marketing and branding.
This is evident in the promotional commitment and expanded application of nano-DAPs in agricultural climates, all of which again indicate their involvement in innovative agricultural technologies. Agriculture and food processing remain major industries, and efforts are being made to increase value-added products and increase farmers’ income.
Pradhan Mantri Kisan Sampada Yojana has supported 3.8 lakh farmers and created 10 lakh jobs, while the PM Formalization of Micro Food Processing Enterprises Scheme has supported 2.4 lakh self-help groups (SHGs) and 60,000 individual loan borrowers. These projects aim, among other things, to reduce post-harvest losses and improve overall yields and incomes. In terms of financial assistance, the government is committed under PM Kisan Samman Yojana and provides direct financial assistance to 11.8 lakh farmers including small marginal farmers. Furthermore, crop insurance under the PM Crop Insurance Scheme covers 40 million farmers, reflecting a holistic approach to ensuring food security and farmer welfare.
The budgetary allocation for the Ministry of Agriculture and Farmers Welfare has been increased to Rs. Rs 1,27,470 crore for the interim budget for 2024-’25, which represents an increase of 1.95 per cent over 2023-’24. The Agriculture Ministry’s allocation for the North-Eastern region for the interim Budget 2024-25 is Rs 11,939.46 crore, showing an increase of 3.35 per cent. The total allocation for agriculture and allied sector in FY 2024-25 is Rs 146,819 crore, showing a significant increase over Rs 144,214 crore in the previous year. Similarly, the budgetary allocation for fertiliser, which is essential to sustain agricultural production, is estimated to be Rs 164,000 crore by 2024-25, slightly lower than last year’s share of Rs 175,100 crore.
The budget estimates for agriculture for 2024-2025 reveal a dramatic increase over the previous fiscal year 2023-2024, reflecting a significant increase in funding for several key programs in the context of the importance of the sector in the current budget. The Mahatma Gandhi National Rural Employment Guarantee Programme, a flagship project, has been increased from Rs 60,000 crore in 2023-24 to Rs 86,000 crore in 2024-25, underscoring the government’s commitment to rural employment. Similarly, the outlay in the crop insurance scheme increased from Rs 13,625 crore to Rs 14,600 crore, underscoring the importance of reducing risks in agriculture. The allocation for the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, which aims to provide financial assistance to farmers, has been reserved at Rs 60,000 crore. However, formation and promotion of 10,000 farmer-producer organizations (FPOs) saw a decline from Rs 955 crore to Rs 582 crore, indicating a rethinking of strategies or a change in the mindset by which they are hired. The budget estimate of the Pradhan Mantri Annadata Aay Sanrakshan Yojana (PM-ASHA) saw a marginal increase to Rs 1,738 crore in 2023-24, reflecting the continued emphasis on providing Rs 600 crore to farmers through improvements in agricultural infrastructure. Reflects recognition of need. , The crop science budget for food and nutrition security has been increased to Rs 930 crore, indicating a commitment to advance agricultural research technology. Irrigation and development schemes saw an increase of Rs 11,391 crore and Rs 7,553 crore respectively in Pradhan Mantri Krishi Sinchai Yojana and Rashtriya Krishi Vikas Yojana, thereby boosting overall agriculture and improving water consumption efficiency. It also shows the government’s commitment to increase seed production. Overall, the Budget 2024-2025 provides a strategic plan to boost agriculture-related activities; It requires variety
