New Delhi: Union Finance Minister Nirmala Sitharaman announced a substantial allocation of ₹1.50 lakh crore dedicated to the agriculture sector while presenting Budget 2024. The budget emphasises on enhancing productivity and resilience, with a focus on introducing 10 million farmers to natural farming methods over the next two years. “109 new high-yielding, climate-resilient varieties will be released to farmers. Additionally, 10,000 need-based bio-input centres will be set up to strengthen production, storage and marketing of oilseeds,” she said on July 23, 2024.
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However, the budget has also reduced subsidy rates for fertilizers and food items. The food subsidy budget is estimated at ₹ 2,05,250 crore, 3.34% lower than the revised estimates for FY24. Fertilizer subsidy has been cut by ₹ 1 lakh crore or 13.18%, now fixed at ₹ 1,64,000 crore compared to the actual expenditure in FY2022-23.
The entire food subsidy has now been consolidated under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). Under this scheme, the central government will provide five kilograms of free wheat or rice every month to all eligible people for the next five years.
Additionally, the Finance Minister announced a plan to promote digital public infrastructure in collaboration with state governments. The initiative aims to provide farmers access to critical information such as weather forecasts, market prices and crop advisory services.
“Digital crop survey for Kharif will be conducted in 400 districts in FY 2025. People support based Kisan Credit Cards will be issued in five states. Financing will be facilitated through National Bank for Agriculture and Rural Development (NABARD) for shrimp farming, processing and export,” Sitharaman announced.
Compared to last year’s budget, the Finance Ministry has allocated Rs 10,000 crore for the Price Stabilization Fund, which will benefit farmers. The move is aimed at controlling price rise. In last year’s budget, only Rs 10 lakh was allocated for this fund.
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This comprehensive approach signals a shift towards a more sustainable and resilient agricultural structure, while addressing immediate financial constraints through reduced subsidies.
