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Source-This post on Agricultural Initiatives in the 2024-25 Union Budget has been created based on the article “To tackle climate risk, agri gets A RESEARCH RESET” published in “Live Mint” on 24 July 2024.
UPSC Syllabus-GS Paper-3- Government Budgeting.
Context– The 2024-25 Union Budget introduces ambitious agricultural initiatives alongside modest financial allocations. It highlights research, sustainable practices, and digital infrastructure, with a focus on natural farming and crop diversification. However, the effectiveness of these programs could be hindered by budget constraints.
What are the initiatives announced in the budget?
1) Specific Initiatives: Release of 109 high-yielding, climate-resilient varieties of 32 crops
2) Natural Farming -Budget plans to transition 10 million farmers to natural farming practices over two years, providing certification and branding support. Additionally, the budget proposes establishing 10,000 bio-input resource centers to further promote natural farming.
3) Large Scale Vegetable Cluster-The budget proposed a strategy for self-sufficiency in pulses and oilseeds production, reducing India’s dependence on imports. It also suggested establishing large-scale vegetable clusters near major consumption centers to stabilize prices amid recent volatility in perishable good
4) Digital Public Infrastructure (DPI)- This initiative involves digital crop surveys in 400 districts and registering 60 million farmers and their lands digitally. It also includes distributing Kisan Credit Cards to farmers in five states.
A detailed article on Budget 2024-25 can be read here.
What are the issues with budgetary allocation?
1) Inadequate Allocation-
A) The budget for apex research institutions like ICAR, central agricultural universities, and NAAS is Rs 7,103 crore for 2024-25, down from Rs 7,248 crore last year.
B) In Rastriya Krishi Vikas Yojana, the budget allocation increased minimally from Rs 14,216 crore in 2023-24 to Rs 15,000 crore in 2024-25.
C) National Mission on Natural Farming-The budget allocated is Rs 366 crore, down from Rs 459 crore allocated last year.
D) PM-KISAN, saw no increase in allocation for 2024-25. This lack of adjustment for inflation over five years could lead rural households to question the effectiveness of non-indexed cash transfer schemes.
2) Lack of Clear Roadmap-The budget for agriculture and allied sectors, covering research, fisheries, animal husbandry, and dairying, rose by 6%. However, addressing the policy challenge of reducing subsidies and increasing investments in agriculture was not outlined in the budget.
3) Allocation Prioritization in Budget -According to the International Food Policy Research Institute, the budget allocations prioritize crops like cereals and food grains based on calories and area.However,it provides little support for high value produce such as fruits, which are driving agricultural growth.
Question for practice
What are the measures introduced in the budget? What are the concerns regarding the allocation of funds?
