NEW DELHI – The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman on July 23 has triggered significant discussions about its impact on the economy, especially food prices. With a substantial allocation of ₹1.50 lakh crore for agriculture and a focus on climate-friendly farming practices, the budget aims to address various economic challenges while promising to support the rural economy.
In the food and agriculture sector, the Finance Minister announced a massive allocation of ₹1.50 lakh crore. This investment is focused on increasing productivity and developing climate-resilient seeds and crop varieties. Sitharaman highlighted that, “109 new high-yielding and climate-resilient varieties of 32 field and horticultural crops will be released for farmers. In the next 2 years, one crore farmers will be introduced to natural farming, supported by certification and branding. The ₹1.52 lakh crore allocated for agriculture may also boost rural demand for automobiles – especially entry-level two-wheelers and tractors.”
Also read: Union Budget 2024: Nirmala Sitharaman allocates Rs 1.50 lakh crore to agriculture, cuts food subsidy
According to the Economic Survey 2024, last year saw a “marginal” decline in foodgrain production due to poor and delayed monsoon. This year’s budget may provide some relief, but food and fertilizer subsidies have been reduced. The food subsidy budget is estimated to be ₹2,05,250 crore, 3.34% lower than the revised estimates for FY24. Additionally, fertilizer subsidy has been reduced to ₹1,64,000 crore, ₹1 lakh crore or 13.18% lower than the actual expenditure in FY2022-23.
According to the data posted on the official website of the Department of Consumer Affairs on July 23, 2024, there has been a change in the prices of daily commodities since the budget announcement.
Pulses
The retail price of chana dal, a pulse used in many households, rose slightly to Rs 84.43 per kg as of July 23, showing a rise of 1.03% from Rs 83.57 last month. The prices of other pulses have also changed significantly, with different varieties witnessing significant increases ranging from 0.85% to 22.84%.
Photo Credit: Screenshot from data posted by Department of Consumer Affairs.
Photo Credit: Screenshot from data posted by Department of Consumer Affairs.
edible oil
Overall, there has been little change in the prices of major edible oils including groundnut, mustard and sunflower. However, there has been a significant change in prices at the local level, especially in big cities like Mumbai and Delhi.
Photo Credit: Screenshot from data posted by Department of Consumer Affairs.
Photo Credit: Screenshot from data posted by Department of Consumer Affairs.
grains and sugar
Prices of cereals and sugar remained broadly stable, with only minor fluctuations reported. There was no significant change in the prices of rice, wheat and flour in major cities, while sugar prices also remained stable.
Photo Credit: Screenshot from data posted by Department of Consumer Affairs.
Photo Credit: Screenshot from data posted by Department of Consumer Affairs.
vegetables
A huge jump in prices has been observed in the vegetable market. Potato, which was priced at Rs 23.30 per kg last year, has now reached an average of Rs 37.86 per kg. Similarly, onion has also increased from Rs 25.99 to Rs 44.27 per kg. Tomato prices have seen a slight decline in Delhi and Mumbai, yet overall prices remain high.
Photo Credit: Screenshot from data posted by Department of Consumer Affairs.
Photo Credit: Screenshot from data posted by Department of Consumer Affairs.