[ Dr. Devegowda S R ]
The first budget of Modi 3.0, with a total size of Rs. 48.20 lakh crore for FY 2024-25, devotes a significant portion to agriculture, highlighting its importance in the overall economic strategy. This is evidenced by the allocation of Rs.1.52 lakh crore towards fostering productivity, resilience and sustainability in agriculture and allied activities. The current budget stands out as pivotal with a 5.3% increase in allocation to agriculture and allied activities, compared to Rs.1.44 lakh crore in the previous FY 2023-24. This increase reflects the government’s enhanced focus on this critical sector. The budget emphasizes enhancing agricultural research and development. The initiative to review and revamp research infrastructure, coupled with challenge mode funding involving private sector participation, promises to spur innovation and accelerate the adoption of climate-resilient crop varieties. This move aims not only to bolster farm productivity but also to ensure food security amidst changing climatic conditions.
The budget’s emphasis on natural farming for 1 crore farmers, supported by certification and branding initiatives, reflects a progressive shift towards organic and eco-friendly agricultural practices. This holistic approach not only promotes soil health and biodiversity but also enhances the marketability of Indian agricultural products on a global scale. Additionally, initiatives like the Digital Public Infrastructure for Agriculture (DPI) and the promotion of Farmer-Producer Organizations (FPOs) signify a robust push towards digital inclusion and market access for rural farmers by digitizing agricultural processes and facilitating financial services through initiatives like Jan Samarth-based Kisan Credit Cards, the government is empowering farmers with tools to manage risk and improve profitability. The introduction of 109 new high-yielding and climate-resilient crop varieties across 32 field and horticulture crops is expected to be a game-changer. The government is paving the way for sustainable farming practices that align with global environmental standards by providing farmers with access to advanced agricultural technologies. The budget also includes significant increases in allocations to key agricultural schemes. The Rashtriya Krishi Vikas Yojana saw a 5.6% increase, the Krishionnati Yojana received a 5.3% boost and the Crop Insurance Scheme allocation increased by about 7% compared to the previous year’s budget estimates. This focus on comprehensive support for the agriculture and allied sectors highlights the government’s commitment to creating a robust and resilient agricultural ecosystem.
The Union Budget 2024-25 for agriculture sets a promising trajectory for the sector, aiming not just for growth but for sustainable development. The first budget of Modinomics 3.0 presents an overall positive picture, focusing on a shift towards natural farming that promotes sustainable agricultural practices and reduces dependency on chemical fertilizers and pesticides by enhancing soil health and biodiversity while reducing cultivation costs for farmers, this budget increases their profitability. The establishment of large-scale vegetable production clusters and the promotion of ‘atmanirbhar’ in oilseed production are notable initiatives. The digitization of the agriculture sector through a digital crop survey for Kharif in 400 districts and the issuance of Jan Samarth-based Kisan Credit Cards in five states signify a modern approach to agricultural development. Financing for shrimp farming, processing and export through NABARD adds another dimension to this comprehensive agricultural strategy. The 2024-25 budget lays a solid foundation for transforming Indian agriculture into a modern, resilient and globally competitive force, ensuring long-term prosperity for farmers and stakeholders. (The writer is Assistant Professor Department of Agricultural Economics, Rajiv Gandhi University)
