Budget 2024: Nirmala Sitharaman Unveils Challenge Mode Funding for Agriculture Research
23 July 2024, New Delhi: Productivity and resilience in agriculture are first among the nine priority areas announced in the Union Budget 2024-25. The Budget has made a provision of ₹ 1.52 lakh crore for agriculture and allied sectors. The Union Budget includes key measures for improving Digital Public Infrastructure, self-sufficiency in oil seeds, large-scale clusters for vegetable production and financial support for the network of Nucleus Breeding Centres for Shrimp Broodstocks.
The budget also covers previously made announcements that include minimum support price and kharif season related policy announcements with an intent to strengthen them and step up the implementation for expediting India’s journey towards the goal of recursive priority on productivity and resilience in agriculture.
Challenge Mode Funding for Agriculture Research
The Union Minister for Finance and Corporate Affairs Nirmala Sitharaman has said that the Government will undertake a comprehensive review of the agriculture research set up to bring the focus on raising productivity and developing climate-resilient varieties. Funding will be provided in challenge mode, including to the private sector. The Union Minister added that domain experts both from the Government and outside will oversee the conduct of such research. The Budget also announced that new 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops will be released for cultivation.
Digital Public Infrastructure for Agriculture
Buoyed by the success of the pilot project, the Government, in partnership with the states, will facilitate the implementation of the Digital Public Infrastructure (DPI) in agriculture for coverage of farmers and their lands in 3 years. Union Finance and Corporate Affairs Minister Nirmala Sitharaman, while presenting the Budget for 2024-25 in Parliament said that during this year, a digital crop survey for Kharif using the DPI will be taken up in 400 districts. She said the details of 6 crore farmers and their lands will be brought into the farmer and land registries. Sitharaman added that the issuance of Jan Samarth based Kisan Credit Cards will be enabled in 5 states.
Missions for Pulses And Oilseeds
To achieve self-sufficiency in pulses and oilseeds, the Government will strengthen their production, storage and marketing. While presenting the Union Budget 2024-25 in Parliament, the Union Minister Nirmala Sitharaman said that a strategy is being put in place to achieve self-sufficiency for oil seeds such as mustard, groundnut, sesame, soybean, and sunflower, as announced in the interim Budget.
Vegetable Production & Supply Chains
The Finance Minister added that large-scale clusters for vegetable production will be developed closer to major consumption centres. She said the Government will promote Farmer-Producer Organizations, cooperatives and start-ups for vegetable supply chains including for collection, storage, and marketing.
Shrimp Production & Export
The Union Finance Minister said Financial support for setting up a network of Nucleus Breeding Centres for Shrimp Broodstocks will be provided. Sitharaman said Financing for shrimp farming, processing and export will be facilitated through NABARD.
Natural Farming
The Finance Minister also announced that in the next two years, one crore farmers across the country will be initiated into natural farming supported by certification and branding. She said implementation will be through scientific institutions and willing gram panchayats and 10,000 need-based bio-input resource centres will be established for the purpose.
Agri-Input Industry Reacts
The agriculture industry has been pushing for various interventions in agriculture research to bring in the desired changes in farming practices and the way business functions down the value chain. The interventions are not just limited to research but also include GST changes, production-linked incentives and benefits for investment in new technologies, etc.
Rajesh Aggarwal, Vice Chairman, Crop Care Federation of India (CCFI) said, “The Union Budget 2024-2025’s significant allocation of Rs 1.52 lac Crores for the agricultural sector is a turning point for Indian agriculture. By focusing on productivity and resilience, this budget promises to transform the lives of farmers and boost the overall economy.”
Narinder Mittal, Country Manager & Managing Director – CNH India & SAARC said, “With its focus on farmers, this forward-thinking budget is set to enhance the livelihoods by promoting sustainable practices, boosting productivity, and developing digital and financial infrastructure. By introducing 10 million farmers to natural farming techniques and emphasizing on agricultural research will help develop climate resilience for a more secure future. Furthermore, the three-year plan and framework for digital infrastructure will benefit farmers with access to vital information, such as weather forecasts, crop advisory services, and market prices. This will enable informed decision-making, better crop management, and increased financial resources for investing in advanced farm equipment and precision technology, driving growth, productivity, and crop quality.”
Ankur Aggarwal, Managing Director of Crystal Crop Protection Limited said, “We welcome the government’s allocation of Rs. 1.52 lakh crore for the agri and allied sectors. The introduction of 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops is a significant step forward for our farming community. The comprehensive review of agricultural research, led by domain experts, will ensure the effectiveness and relevance of developing climate-resilient seeds. Additionally, the promotion of digital public infrastructure for agriculture in partnership with states is a forward-thinking initiative.
SK Chaudhary, Founder Director, Safex Chemicals Ltd. said, “The Union Budget is quite progressive for the agriculture sector. The abolition of the Angel Tax is a visionary step that will significantly empower startups, catalyzing innovation and growth within the agricultural sector. This, along with the comprehensive review of agricultural research, announces a new era of productivity and climate resilience. The push towards Atmanirbharta in oilseed production reflects a strategic move towards self-reliance and a reduced import burden.”
Raju Kapoor, Director, Industry & Public Affairs, FMC India said, “The government has presented a forward-looking and growth-oriented budget that rightly prioritizes the transformation of Indian agriculture. The comprehensive review of agricultural research focusing on productivity and climate resilience is a much-needed step. We are also encouraged by the government’s commitment to involve the private sector and domain experts to further enhance this endeavor, fostering a collaborative approach towards agricultural innovation and building a larger innovation ecosystem.
Sanjiv Kanwar, Managing Director – Yara South Asia said, “The attention given to pulses and oilseeds, along with the development of large-scale clusters near FPO centers and consumption centers, directly addresses the need for a robust and efficient supply chain. These large-scale clusters around consumption centers will also help in efficiently reducing the carbon footprint of the agricultural supply chain. We are also pleased to see the government’s commitment to digital public infrastructure, including the digital crop survey, which will contribute to greater transparency and data-driven decision-making in agriculture.”
Ayush Gupta – Business Head, India market, KRBL Limited, “KRBL commends the government for coming up with a very progressive and pragmatic budget that will provide a strong foundation for transforming Indian agriculture. Productivity and resilience, through initiatives such as comprehensive review of agri-research, the release of high-yielding and climate-resilient crop varieties, and promotion of natural farming, completely resonate with India’s vision of sustainable and prosperous farming.”
Vimal Kumar Alawadi, Managing Director, Best Agrolife Ltd said, “The Hon’ble Finance Minister must be congratulated for the Budget’s compassionate vision with its focus on the poor, women, youth and farmers. Since climate change has been impacting agricultural output, it requires a sustained emphasis to shift Indian farming from its reliance on rains to an irrigation-led ecosystem.
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