On Tuesday, Finance Minister Nirmala Sitharaman budgeted for agriculture and its associated fields worth Rs 1.52 lakh crores and mentioned nine major areas of focus including productivity increase. The Centre will now review the research set-up for agriculture to bring focus on formulating climate-resilient varieties and increasing productivity.

She stated during her address on the budget that over the next two years, one million farmers would be assisted in organic farming. The introduction of climate-resilient varieties spanning 32 field and horticulture crops and new 109 high-yielding varieties will be released for farmers’ cultivation. In the next two years, there will be initiation into natural farming backed up with certification as well as branding for 1 crore farmers, she said.

Production of pulses and oilseeds will be reinforced and mammoth agglomerations of vegetables will be cultivated in proximity to major areas of consumption. According to Ms. Sitharaman, the center will foster Farmer-Producer Organizations (FPOs), start-ups, and cooperatives for vegetable supply chains, including all stages such as collection, marketing, and storage. However, a decrease in food subsidies and fertilizers caused some farmers’ cooperatives to speak against government policies.

For the Welfare of the Farmers and Poor

The Budget, Union Minister of Agriculture Shivraj Singh Chouhan asserted, is for developing the nation and doing good for its impoverished citizens. The total allocation in the Budget 2024 for the Department of Agriculture and Farmers Welfare stands at ₹1,22,528.77 crore. In the last financial year’s (2023-24) Revised Estimates, the figure was ₹1,16,788.96 crore. This included a ₹500 crore allocation for the Namo Drone Didi Scheme.

The PM Kisan Nidhi is likely to receive most of the allocation. ₹9,941.09 crore has been earmarked for the Department of Agricultural Research and Education. This figure stood at ₹9,876.60 crores in the revised budget of last fiscal. The Ministry of Fisheries, Dairying and Animal Husbandry receives an allocation of ₹7,137.68 crores only. In the previous Revised Estimates, this number was ₹5,614.93 crores.

Concern Over Budget Cut

The Fertilizers Department is assigned a budget of ₹164,150.81 crores to manage its affairs. According to the Revised Estimates presented for 2023-24, this figure was ₹188,947.29 crores while the actual expenses incurred during 2022-23 were ₹251,369.18 crores. The farmers’ organizations expressed concerns regarding the decline in the allocation and cited that it represents a “huge decline” of about 34.7% in fertilizers. They say it is equivalent to a reduction of ₹87,238 crore compared to the previous year’s actuals in 2022-23. “This will have detrimental repercussions on agricultural production,” stated Ashok Dhawale of Samyukt Kisan Morcha.

Implementation of Digital Public Infrastructure

Moreover, the Finance Minister declared that digital public infrastructure would be promoted in collaboration with state governments by the government. Such a digital framework will grant farmers access to crucial data including weather predictions, market prices, and crop consultancy services.

Conclusion

Although the Budget for rural areas and agriculture will increase the income of the population, it is still unclear whether it is sufficient to restore the rural sector. It focuses not only on transforming agricultural research but also on reinforcing natural farming and strengthening digital public infrastructure. Success however depends on the efficient allocation of funds and implementation.