The government plans to facilitate the implementation of the digital public infrastructure in agriculture for coverage of farmers and their lands in three years. It also plans to initiate one crore farmers across the country into natural farming. Further, it proposes to focus on developing climate-resilient varieties and release new high-yielding seed varieties for cultivation by farmers.
In the Union Budget 2024, the government reiterated its focus on empowering the farmers, women, and youth, while highlighting growth in the agriculture sector as one of the top nine priorities to achieve the goal of 'Vikasit Bharat'.
Allocation for agriculture and allied activities has been increased by 19 per cent from the interim budget levels to Rs 1.52 lakh crore. Allocation to rural development is pegged at Rs 2.65 lakh crore, up from Rs 2.38 lakh crore in FY24. Allocation to Pradhan Mantri Awas Yojana, a credit-linked subsidy scheme to facilitate affordable housing, and Pradhan Mantri Gram Sadak Yojna, a road development initiative, have been stepped up. The higher allocations should propel activity in rural areas and support the incomes of the people.
As expected, allocation to fertiliser subsidy is maintained at interim budget levels of Rs 1.64 lakh crore. The subsidy levels have decreased from Rs 2.5 lakh crore in FY23 and Rs 1.9 lakh crore in FY24.
To this extent, the input costs of fertiliser production could increase. Contrary to the expectation of a hike in the income support scheme to farmers, Pradhan Mantri Kisan Samman Nidhi (PM-Kisan), the government maintained the budgetary allocation at Rs 60,000 crore.
With Atmanirbhar Bharat in focus, the government announced that it will strengthen the production, storage, and marketing of pulses and oilseeds. At present India is highly dependent on the import of edible oils and pulses. A major portion of the funds will be directed towards improving the production, storage, and marketing of pulses and oilseeds. It is a welcome step.
This move should help increase the area under production of these crops and improve the per-hectare crop yield while helping to curb imports. To get the desired result, the state governments have to extend their cooperation in full measure.
Crop diversification
India produces excess quantities of food grains, often exploiting the natural resources (ground water resources in the case of paddy). The policies, namely minimum support prices, free electricity and subsidised fertiliser, and water encourage farmers to continue with their cropping patterns. A government-driven scheme to promote crop diversification has been proposed to help farmers to experiment with new crops.
In order to encourage farmers to switch over to more profitable crops the government has expressed its plan to support Punjab farmers by offering Rs 7,000 per acre for planting crops other than paddy as part of the Crop Diversification Plan (CDP). Similar support should have been provided to farmers in other states so as to adopt sustainable and more profitable crops.
Push to natural farming:
The government plans to promote natural farming under the Bharatiya Prakritik Krishi Paddhati Programme (BPKP). For the first time, the union budget included a separate Rs 100 crore fund to promote organic fertilisers. The government plans to handhold one crore farmers in the next two years into national farming. This transition is planned to be achieved through involving scientific institutions and willing gram panchayats for which 10,000 need-based bio-input resource centres will be established.
From the perspective of sustainability, sincere efforts should be made to increase awareness and adoption of organic and bio-fertilisers. Aggressive policy action will be needed to implement natural farming on a commercial country-wide scale. The state governments have to put their resources and efforts to complement the central government initiatives in this regard.
Digitalisation:
A digital crop survey for Kharif crops will be conducted in 400 districts in the country this year, integrating the details of six crore farmers and their lands into farmer and land registries. Since this is set as a high priority, the resources for this will be drawn from the main budget allocation for agriculture.
This survey will help in coming out with more precise crop estimates a prerequisite for better planning for required interventions to help both farmers and consumers, either in deficit or glut situations.
The government also focused on digitising a lot of agri processes which should help farmers and reduce the government's fiscal commitment to the expenses associated with Kisan insurance and others.
Digitisation of the development of the agriculture stack can smoothen the implementation of government policies. This initiative can also help in reaching out to the needy sections of the people dependent on allied sectors such as animal husbandry, dairying, and fisheries so as to enhance their incomes.
Digitalisation is the first step towards achieving technological advancement in agriculture. Embracing ag-tech innovations will revolutionise Indian agriculture. The integration of advanced technologies like precision farming, AI-driven analytics, and IoT can optimise farming practices, enhance yield, and ensure sustainable use of resources.
This technological leap will not only boost domestic productivity but also enhance the appeal of Indian agricultural exports. States like Telangana and Uttar Pradesh have developed state-specific agri-tech policies to improve the proliferation of ag-tech players. This requirement too has to be accommodated in the overall budget allocation.
One would have wished for a higher level of allocation for the development and deployment of these technologies, the establishment of ag-tech hubs, the promotion of start-ups, and the fostering of public-private partnerships.
Blockchain technology offers a robust solution to enhance the export potential of GI-mapped crops like Tea from Darjeeling, Basmati from the Himalayan Foothills, Alphonso from Ratnagiri, Kalanamak rice from Uttar Pradesh, Saffron from Kashmir, etc. Such technologies represent a transformative step towards promoting and marketing the country's hidden agricultural gems. By ensuring authenticity, improving transparency, simplifying certification, and building consumer trust, blockchain can help Indian farmers and producers tap into lucrative global markets.
Limited support to post-harvest infrastructure:
Many observers expected the government to focus on enhancing post-harvest infrastructure, investing in high-value and climate-resilient crops, and utilising cutting-edge ag-tech innovations, the budget towards ushering in a new era of agricultural prosperity. What the budget proposed in this regard is to enhance the supply chain of vegetables through the development of large-scale clusters for vegetable production near major consumption centres.
Bolstering post-harvest infrastructure is critical. The wastage of produce due to inadequate storage and transportation facilities is a perennial challenge that hampers export potential. Fund allocation to build state-of-the-art storage facilities, efficient logistics networks, and robust supply chains would have ensured India's agricultural produce remains fresh and export-ready.
This investment would have not only reduced post-harvest losses but also enhanced the quality and competitiveness of Indian products in global markets. Finding support for this in this budget does not appear to be significant. In the background of limited budgetary support, it is to be seen how this objective will be achieved.
Preparing for Climate Change:
Climate change is no longer a distant threat; it is a present reality. The unprecedented summer heat is a stark reminder of this crisis. Developing an adaptation strategy is not optional — it is essential. It is to be seen how the budget allocation for extension to promoting climate-resilient agricultural practices, investment in the development of tolerant varieties, and enhancing access to financial services and technical advice will be carried out at the operational level.
The centre and state governments have to work together to provide targeted subsidies, research, and development initiatives to encourage farmers to diversify and embrace these climate-resilient crops, leading to increased incomes and economic resilience. Against the pleas for several years for reorienting the agricultural research and extension system this year, the budget outlines a significant commitment to advancing R&D in agriculture. Let us hope this policy emphasis will deliver the desired results.
The budget also addresses the aquaculture sector with a new financial support scheme. A network of nucleus breeding centres for shrimp broodstocks will be established, with funding for shrimp farming and exports facilitated through the National Bank for Agriculture and Rural Development (NABARD). This initiative is expected to boost the shrimp farming industry and its export potential.
In addition, the Finance Minister announced a new national cooperation policy. This policy aims to ensure the systematic and orderly development of the cooperative sector. Its objectives include accelerating the growth of the rural economy and creating significant employment opportunities.
After all, the central government budget is a policy statement backed by funds support. How it is translated into the actual results will depend on the effectiveness of state governments.
A key factor:
India spends only 0.4% of agri GDP on R&D and it is far below the levels in China, Brazil, and Israel.
(Disclaimer: The opinions expressed in this article are those of the writer. The facts and opinions expressed here do not reflect the views of ETV Bharat)
