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Budget 2024 aims to boost farmer’s income with fair MSP, climate resilience, export promotion, research investment, and improved rural infrastructure.
Finance Minister Nirmala Sitharaman will present the Union Budget for the Modi Government 3.0 on July 23, 2024, during the Monsoon Session of Parliament. In preparation, she held a pre-budget meeting with key agricultural organizations and experts on June 21, 2024, in New Delhi to address the sector's challenges.
In this meeting, the focus was on increasing investment in agricultural research, rationalizing fertilizer subsidies, and developing infrastructure to cope with climate change issues. Experts also called for boosting the budget for the Indian Council of Agricultural Research (ICAR) from Rs 9,500 crore to Rs 20,000 crore.
Shivraj Chauhan, the former Chief Minister of Madhya Pradesh and current Agriculture and Farmers Welfare Minister, has significantly improved Madhya Pradesh's agriculture sector, recording an annual growth of 6.1% from 2013-14 to 2022-23. His experience and leadership are expected to assist Nirmala Sitharaman in crafting a favorable budget for farmers.
MSP, or Minimum Support Price, ensures farmers receive fair prices for their crops. In Budget 2024, the government might guarantee the purchase of oil seeds and pulses at fair MSPs. The Government of India had already announced an increase in MSP for the Kharif crop season 2024-2025 on June 19, 2024, significantly raising the MSP of 14 Kharif crops, including Ragi, Arhar, Urad, Sesame, Sunflower, and Groundnut.
Farmers face challenges from untimely floods and droughts due to climate change. A survey by the Forum of Enterprises for Equitable Development (FEED) and Development Intelligence Unit (DIU) revealed that about 41% of crops are damaged due to drought and 32% due to irregular rainfall. As a result, about 43% of farmers lose at least half of their crops. The budget is expected to address these issues and provide solutions to mitigate climate change impacts.
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Agricultural experts recommended increasing the budget for the Agricultural and Processed Food Products Export Development Authority (APEDA) from Rs 80 crore to Rs 800 crore to promote exports. They also suggested establishing export centers at the district level for better-planned agricultural exports. India's total agricultural exports stood at $52.49 billion in FY 2023 and $38.65 billion from April 2023 to January 2024. The PHD Chamber of Commerce and Industries (PHDCCI) predicts that agricultural exports could reach $100 billion in the next three years.
The central government already subsidizes agricultural equipment and seeds. With the increasing use of bio-fertilizers and foliar fertilizers, agricultural experts have suggested extending subsidies to these products. Farmers can expect changes in fertilizer subsidies in Budget 2024.
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India lags behind other countries in agricultural mechanization. The government needs to promote agricultural research and invest more in this sector. Farmers should have access to climate-resilient crop varieties, the latest pesticides, microbial products, and sustainable agricultural systems. Budget 2024 is expected to focus on building a strong agricultural innovation ecosystem and developing cutting-edge technologies.
Strong rural infrastructure is essential for agricultural development. Roads, bridges, grain storage facilities, cold chains, and veterinary services in rural areas can reduce post-harvest losses and help farmers reach markets. Budget 2024 is expected to address the need for improved rural infrastructure.
Despite existing subsidies, only 10% of farm machinery is purchased through subsidies due to loan difficulties. The central government should simplify agricultural finance, making loans more accessible to farmers. Most subsidies are used for tractors, with lower purchases of other equipment. Budget 2024 is expected to encourage farmers to use subsidies for a wider range of agricultural equipment.
Farmer Producer Organizations and agriculture-related start-ups can increase the income and efficiency of the agriculture sector. Budget 2024 is expected to promote these organizations and start-ups, providing more funds for their formation and encouraging rural youth to join the agriculture sector.
Budget 2024 is crucial for the country's farmers. They expect the government to provide solutions to their problems. On July 23, we will see how much this budget meets farmer’s expectations.
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Budget 2024 is assured to address critical issues for farmers, including fair MSP, climate resilience, export promotion, research investment, and rural infrastructure. With significant expectations, farmers hope the government will deliver solutions to enhance their income and sustainability. Stay connected with us for the latest news and announcements on Budget 2024.