[Dr Devegowda SR]
The country eagerly waited for the unveiling of the union budget for FY 2024-’25 on 1 February and all eyes are on the agricultural inputs. Agriculture, which employs over 50 percent of India’s labour force and contributes significantly to the GDP, occupies an important position in the national economy. The achievement reflects the commitment to a balanced, scalable and productive growth for all in the agricultural sector. Emphasising the government’s commitment to various sectors in the agricultural sector, the fisheries department again demonstrates insights into creating jobs and promoting sustainable practices. The main focus of the budget is the Aatmanirbhar sesame seed campaign, which aims to become self-sufficient in sesame seeds like mustard, groundnut, soybean, sesame, sunflower, etc. With a broad-approach research on multiple crop varieties, and modern agriculture, the government emphasises on post-harvest activities, including strategies, market linkages, procurement, value added and crop insurance, besides private and public investment in collection, modernisation, storage, supply chain, primary and secondary production, marketing and branding.
It is evident in the promotional commitment and expanded application of nano-DAP in the agricultural climate all of which again indicate their involvement in innovative agricultural technologies. Agriculture and food processing continue to be key industries, and efforts are made to increase value added products and increase farmers’ incomes.
The Pradhan Mantri Kisan Sampada Yojana has supported 3.8 lakh farmers and created 10 lakh jobs, while the PM Formalisation of Micro Food Processing Enterprises scheme has supported 2.4 lakh self-help groups (SHG) and 60,000 individual credit borrowers. These projects aim, inter alia, to reduce post-harvest losses and improve overall yield and income. In terms of financial assistance, the government continues to commit under the PM Kisan Samman Yojana and provides direct financial assistance to 11.8 lakh farmers, including small marginal farmers. In addition, 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 allocation has been increased to Rs. 1,27,470 crore for the 2024-’25 interim budget, representing an increase of 1.95 percent, compared to 2023-’24. Agriculture ministry allocation for Northeast region is Rs 11,939.46 crore for the 2024-’25 interim budget, representing an increase of 3.35 percent. Total allocation to agriculture and allied sector in FY 2024-’25 stands at a staggering Rs 146,819 crore, showing a significant increase of over Rs 144,214 crore in the previous year. Similarly, the budgetary allocation for fertiliser, which is essential to sustain agricultural production, is estimated at Rs 164,000 crore by 2024-’25, slightly lower than the previous year’s share of Rs 175,100 crore.
The budget estimates of agriculture for 2024-2025 reveal a dramatic increase compared to the previous FY 2023-2024, showing significant increase in funding for a number of major programmes in terms of the importance of the sector in the current budget. The Mahatma Gandhi National Rural Employment Guarantee Programme, a flagship project, has been significantly 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 crop insurance scheme saw an increase from Rs 13,625 crore to Rs 14,600 crore, underscoring the importance of risk mitigation 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, the formation and promotion of 10,000 farmer-producer organisations (FPO) saw a decline from Rs 955 crore to Rs 582 crore, indicating a rethinking of strategies or a change in mindset they are placed in the work. The Prime Minister Annadata Income Protection Scheme (PM-ASHA) saw a marginal increase in the budget estimate of Rs 1,738 crore in 2023-’24, reflecting continued emphasis on providing farmers with Rs 600 crore, indicates recognition of the need to improve agriculture infrastructure. The crop science budget for food and nutrition security has been increased to Rs 930 crore, reflecting a commitment to upgrading agricultural research technology. The irrigation and development schemes saw an increase in the Prime Minister’s Agricultural Irrigation Scheme and the National Agricultural Development Scheme, to Rs 11,391 crore and Rs 7,553 crore, respectively, to boost overall agriculture and improve water consumption efficiency has improved. It also reflected the government’s commitment to increase seed production. Overall, 2024-2025 budget provides a strategic plan to boost agriculture-related activities; it takes a variety of measures to ensure sustainable development and prosperity of farmers across the country.
The union budget for 2024-’25 paints a mixed picture for farmers. While the increased funding for major schemes like MGNREGA and crop insurance reflects the commitment to rural development and risk mitigation, some critical schemes like FPO development will see cuts. Focusing on technologies like nano-DAP and research on high yielding varieties means modernisation, but its impact on small and marginal farmers remains elusive. The emphasis that the self-sustaining olive tree holds promise, but its success depends on proper exploitation and access to markets. Ultimately, the real impact of this budget will depend on its implementation and its ability to meet the needs of farmers across the country, ensuring inclusive and equitable growth for the entire agricultural sector. (The contributor is Assistant Professor, Department of Agricultural Economics, Rajiv Gandhi University)
